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Read in Chinese

Speakers:

Guo Tingting, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM)

Xu Xingfeng, person in charge of the Department of Market Operation and Consumption Promotion of the MOFCOM

Li Xingqian, director general of the Department of Foreign Trade of the MOFCOM

Chen Chunjiang, director general of the Department of Foreign Investment Administration of the MOFCOM

Chairperson:

Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and SCIO spokesperson

Date:

Jan. 25, 2022

Xing Huina:

Friends from the media, good morning! Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will introduce China's commerce development in 2021 and answer your questions. We are joined by Ms. Guo Tingting, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM), Mr. Xu Xingfeng, person in charge of the Department of Market Operation and Consumption Promotion of the MOFCOM, Mr. Li Xingqian, director general of the Department of Foreign Trade of the MOFCOM, and Mr. Chen Chunjiang, director general of the Department of Foreign Investment Administration of the MOFCOM.

Now, let's give the floor to Ms. Guo.

Guo Tingting:

Thank you. Friends from the media, good morning! Welcome to today's press conference, and thank you for your attention and concern for commerce development. Today marks the traditional Chinese Xiaonian Festival, a week before the Lunar New Year. Here, I wish everyone a happy Chinese New Year of the Tiger in advance! Next, I will introduce the general situation of commerce development.

Since the 18th National Congress of the Communist Party of China (CPC), guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the MOFCOM has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, promoted the building of a strong domestic market, advanced high-level opening up, and actively participated in global economic governance. By doing so, China has made new breakthroughs in commercial development. China has become the world's second-largest consumer economy. It has ranked first in trade in goods globally for five consecutive years. China is also the world's second-largest foreign direct investment destination, and its outbound direct investment ranks among the world's top. In addition, the country has established 21 free trade pilot zones, promoted the construction of the Hainan Free Trade Port, and signed the Regional Comprehensive Economic Partnership (RCEP), the world's largest free trade agreement (FTA). 

In 2021, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MOFCOM resolutely implemented the spirit of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee and followed the deployment of the Central Economic Work Conference and the government work report. We fully and faithfully applied the new development philosophy and promoted the fostering of a new pattern of development. We consolidated the gains in the fight against COVID-19 and social development achievements. The positioning of commerce work can be summarized in three important aspects: commerce as an important part of domestic circulation, commerce as an important link between domestic and international circulations, and commerce's important role in building a new development paradigm. With our focus on positioning in the above three important aspects, we carried out a portfolio of "5+5" key tasks. As a result, the commercial operation had a stable, sound, and better-than-expected performance. Foreign trade, foreign investment, consumption volume, and the proportion of investment in countries along the Belt and Road Initiative hit an all-time high. Furthermore, major breakthroughs were made in multilateral and bilateral cooperation. All this has put the implementation of the 14th Five-Year Plan off to a good start and made a positive contribution to the sustained recovery of the national economy.

First, domestic consumption gradually rebounded. Total annual retail sales of consumer goods rose 12.5% to 44.1 trillion yuan. Consumption has re-established itself as the key driver of economic development, accounting for 65.4% of total expenditure. First, urban and rural markets achieved recovery simultaneously. The retail sales of consumer goods in urban and rural areas increased by 12.5% and 12.1%, respectively. Second, the consumption of upgraded commodities increased significantly. The retail sales of commodities increased by 11.8%. Gold, silver, and other jewelry, sports and entertainment supplies, and cultural and office supplies of units above designated size increased by 29.8%, 22%, and 18.8%, respectively. Sales of new energy vehicles increased by 1.6 times. Third, spending on catering and other services saw an orderly recovery, with catering income rising by 18.6% from a year ago, close to the pre-epidemic level. The per capita education, culture and entertainment consumption, transportation and communication consumption, and health care consumption increased by 27.9%, 14.3%, and 14.8%, respectively. Fourth, new consumption models were further developed. China's online sales of physical goods expanded by 12% year on year to 10.8 trillion yuan in 2021, accounting for 24.5% of the total retail sales during the period. The "Online Chinese New Year Shopping Festival" and "Brand and Quality Online Shopping Festival" drove online retail sales of 1.6 trillion yuan. Offshore duty-free sales in south China's island province of Hainan increased by 83.1%.

Second, foreign trade moved up another notch. The total imports and exports of goods expanded 21.4% year on year to 39.1 trillion yuan. Exports rose 21.2%, while imports went up 21.5%, which were highlights of economic operation. First, the scale and share of foreign trade rose higher. Its volume exceeded the $5 trillion and $6 trillion thresholds over the year. The international market shares of exports and imports in the first three quarters were 15% and 12.1%, respectively, hitting record highs. Second, the vitality of the leading market players continued to increase. The number of enterprises involved in exports and imports increased by 36,000 to 567,000. The imports and exports of China's private sector registered an increase of 26.7%, accounting for 48.6% of the country's total foreign trade volume, 2 percentage points higher than the previous year. Third, the imports and exports to major trading partners maintained relatively rapid growth. Imports and exports to ASEAN, the European Union, and the United States increased by 19.7%, 19.1%, and 20.2%, respectively. Fourth, the commodity structure was further optimized. The exports of high-tech and high value-added products increased rapidly. The exports of machinery and electronic products increased by 20.4%, and the volume of new energy vehicles exports increased by 3 times. Fifth, the service trade saw faster upgrades, rising 14.7% year on year to reach 4.7 trillion yuan in the first 11 months of the year. The exports of culture and entertainment and intellectual property royalties, which are knowledge-intensive services, increased by 36.2% and 29.3%, respectively.

Third, absorption of foreign investment increased quickly. The whole year saw the actual use of foreign investment surpass 1 trillion yuan, which was its first time to reach 1.1 trillion yuan, realizing a growth of 14.9%. Newly-established foreign-funded enterprises totaled 48,000, up 23.5%. The quantity and quality of foreign investment both improved. Firstly, the structure of foreign investment continued to optimize. High-tech industries saw a 17.1% increase in foreign investment, bringing the share of the total to 30.2%. In high-tech manufacturing, the growth of foreign investment was 200% in manufacturing of equipment for electronic products manufacturing and 64.9% in general instruments and meters manufacturing. In high-tech services, the growth of foreign investment was 220% in e-commerce services and 25% in services for commercialization of scientific and research findings. Secondly, investments from major sources grew stably. Those from countries along the Belt and Road increased 29.4%. Those from Singapore and Germany grew 29.7% and 16.4%, respectively. Thirdly, the number of large projects grew quickly. The number of projects with contractual foreign investment of $50 million or more each grew 26.1%, and that with contractual foreign investment of $100 million or more grew 25.5%. Fourthly, highlands for opening-up saw remarkable results. A total of 21 pilot free trade zones (FTZs) actually utilized 213 billion yuan of foreign investment, taking up an 18.5% share of the total foreign investment.

Fourth, steady development was seen in the implementation of outward investment and cooperation and in the process of providing foreign aid. In the whole year, our direct outward investment reached 936.7 billion yuan, up 2.2%, with further structural improvements. Firstly, investment and cooperation continued to deepen in key regions such as those along the Belt and Road. Investment in BRI countries grew 7.9%, bringing the share of the total to 14.8%. Investment in the EU grew 13.4%. Secondly, fast growth was seen in investment in key industries. The investment in transportation, services for scientific research, and information technology grew 80%, 68.5%, and 5%, respectively, with the combined share of the three industries up by 3.1 percentage points. Thirdly, win-win results were achieved through cooperation. As of the end of 2021, the accumulated investment in overseas economic and trade cooperation zones stood at $50.7 billion, with a total of $6.6 billion of taxes being paid to host countries and 392,000 jobs being created locally. Fourthly, contracted projects were stable and growing. In U.S. dollar terms, the contractual value of newly-signed contracts grew 1.2%. The number of newly-signed contracts with a worth of at least $100 million each increased by 46. Fifthly, our foreign aid was carried out with high efficiency. We fully implemented the major measures regarding foreign aid announced by President Xi Jinping, and carried out more than 1,000 foreign aid projects throughout the year. We also carried out vaccine-related foreign aid to 107 countries and four international organizations with high efficiency. 

Fifth, multilateral and bilateral economic and trade relations saw new breakthroughs. Firstly, the strategy for boosting FTZs saw major progress. We made efforts for the RCEP to be enacted and implemented as scheduled. We formally applied for the membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). We signed a protocol on upgrading our FTA with New Zealand and gained positive progress in negotiations for upgrading FTAs with South Korea and Singapore. Secondly, multilateral cooperation exerted a bigger role. We hosted the High-Level Session on the 20th Anniversary of China's Accession to the World Trade Organization (WTO) and thematic exhibitions. We completed the eighth review of the WTO on China's trade policies. We proactively participated in WTO negotiations regarding relative issues. We deepened cooperation regarding digital economy and supply chains and promoted inclusive policies in trade and investment under the mechanisms of the United Nations, Group of 20, the Asia-Pacific Economic Cooperation, the BRICS countries, and the Shanghai Cooperation Organization. Thirdly, bilateral and regional economic and trade cooperation further deepened. Remarkable results were achieved through the economic and trade cooperation between provincial-level regions in China and various states in the U.S. Trade between China and Russia reached new heights. We pushed for China and Singapore to develop the New International Land-Sea Trade Corridor together. We contrived practical measures for the eighth ministerial conference of the Forum on China-Africa Cooperation. We hosted the China-CEEC Expo. 

Also, we made solid efforts for epidemic prevention and control and ensured the supply of daily necessities. We compiled the plan for commercial development, the plan for high-quality development of foreign trade, and five special-purpose plans for the 14th Five-Year Plan period (2021-2025).

In 2022, the Ministry of Commerce will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the principles of the 19th National Congress of the Communist Party of China (CPC) and all plenary sessions of the 19th Party Central Committee in full. We will act on the principles of the Central Economic Work Conference, and carry forward the great founding spirit of the Party. We will prioritize stability while seeking progress, apply the new development philosophy completely, accurately and thoroughly, and facilitate the construction of the new development paradigm. We will advance supply-side structural reform as the main task, ensure stability on six key fronts and maintain security in six key areas, and play the three important roles of commerce-related work. We will carry out Covid-19 prevention and control and pursue commerce development in a coordinated way, ensure coordination in pursuing development and upholding security, push for the continued recovery of consumption, stabilize the fundamentals of foreign trade and foreign investment, ramp up efforts in high-level opening-up, keep commerce-related situations running within an appropriate range, and push for the high-quality development of commerce. We will better serve the big picture of socioeconomic development and welcome the successful convening of the 20th National Congress of the CPC with outstanding performances. 

Thank you all!

Xing Huina:

Thanks for Mr. Guo's introduction. Now we start taking questions. Please state the news outlet you work for before raising questions. 

CCTV:

What achievements did the MOFCOM make in promoting economic and trade cooperation under the Belt and Road Initiative (BRI) in 2021? What is the MOFCOM's work plan this year? Thank you. 

Guo Tingting:

Thank you for your questions. I'll brief you on them. Given the profound changes and the pandemic conditions not seen in a century, China continues to uphold the principle of extensive consultation, joint contribution, and shared benefits, and aims for high-standard, people-centered, and sustainable growth. We have worked with relevant parties to promote the high-quality BRI development through joint efforts. Remarkable achievements have been made, with participating countries enjoying common development and mutual benefit. The joint construction of the Belt and Road has developed into a well-received global public product and a platform for international cooperation.

In 2021, the MOFCOM implemented the decisions and plans of the CPC Central Committee and the State Council, stepped up efforts to promote the economic and trade cooperation under the BRI, and made new contributions to the high-quality BRI development. 

First, Unimpeded trade saw new progress. In 2021, total trade of goods between China and countries along the Belt and Road reached 11.6 trillion yuan, marking a new record in eight years. It registered a year-on-year increase of 23.6% and accounted for 29.7% of China's total foreign trade. Cross-border e-commerce and other new business forms developed rapidly. A lot of overseas warehouses were built and put into use. The first overseas smart logistics platform (https://ols.zjmade.cn:18084/consumer/home) was launched to match supply and demand on overseas warehouses. The number of China-Europe freight train trips surged by 22% year on year to 15,000, and a total of 1.46 million twenty-foot equivalent units of goods were handled, up 29% year on year. The New International Land-Sea Trade Corridor witnessed rapid progress. China and Singapore signed a cooperation plan, and jointly held the 2021 CCI-ILSTC International Cooperation Forum.

Second, new progress was made in investment cooperation. Direct investment to countries along the Belt and Road grew 7.9% year on year to 138.45 billion yuan in 2021, accounting for 14.8% of total outbound investment. Companies from countries along the Belt and Road have been optimistic about development opportunities in China. As such, their direct investment reached $11.25 billion (around 74.28 billion yuan), surpassing the threshold of $10 billion for the first time. Steady progress has been made in the construction of BRI projects. The accomplished turnover of contracted projects in countries along the Belt and Road totaled 578.57 billion yuan, accounting for 57.9% of the country's total. The assistance programs in poverty alleviation, healthcare, education, sports, and other areas related to people's livelihood proved to be effective, and the construction of the China-aided future headquarters of the Africa Centers for Disease Control and Prevention went smoothly. 

Third, mechanisms and platforms were well improved. We established with relevant countries eight unimpeded trade working groups and investment and economic cooperation working groups. We signed a Memorandum of Understanding (MoU) with Senegal on e-commerce cooperation, and signed MoUs with Hungary and Russia to enhance cooperation in green development and digital economy. The cooperation mechanisms, thereby, have been improved and more channels have been established to ensure better communication. Moreover, we held successfully a series of exhibitions last year, including the China International Import Expo (CIIE), the China Import and Export Fair (also known as the Canton Fair), the China International Fair for Trade in Services (CIFTIS), the China-ASEAN Expo, and the China-Africa Economic and Trade Expo, which have promoted economic and trade cooperation with relevant countries.

In November 2021, General Secretary Xi Jinping delivered an important speech at the third symposium on the Belt and Road Initiative, charting the course and providing the fundamental guiding principles for promoting the BRI through joint efforts in the new era. In 2022, the MOFCOM will implement the spirit of the important speech made by General Secretary Xi Jinping and take the economic and trade cooperation under the BRI as the priority. We will continue to reinforce the fundamentals of the cooperation and steadily expand new cooperation areas. We will ramp up efforts to build the iconic BRI projects and strengthen risk prevention and control so as to promote the high-quality development of the BRI throughout joint efforts and better serve the building of the new development paradigm. Thank you.

Phoenix TV:

My question is about consumption. As we know, in 2021, the total retail sales of consumer goods grew 12.5% year on year. How does the MOFCOM evaluate the recovery of the consumer market? Are there any features and highlights you'd like to share? Thank you.

Xu Xingfeng:

I'll answer your questions. I'm delighted to meet with the media on China's Little New Year, which falls about a week before the Lunar New Year. Thanks for your attention to the work related to consumption, and I also hope that the media will continue to keep an eye on this field.

Just now, Ms. Guo provided a comprehensive introduction to the operation of China's consumer market in 2021, and I'd like to add more information about it. Last year, in spite of the adverse impact of the epidemic, China's consumer market maintained a steady recovery, showing great vitality and resilience. We have made a good start for the 14th Five-Year Plan. The retail sales of consumer goods totaled 44.1 trillion yuan in 2021, an increase of 12.5% over 2020 and an average increase of 3.9% over the past two years. Throughout the whole year, the features and highlights are mainly reflected in the following four aspects.

First, the innovation-driven features are evident. Various new technologies and concepts have been broadly implemented in the consumption area. New business formats and new models such as curated retail have been rapidly employed. Furthermore, new scenarios like experimental, immersive, and interactive consumption continue to emerge. The integration of business, tourism, and online and offline activities has also been accelerated. Online retail sales reached 13 trillion yuan in 2021, up 14.1% from the previous year.

Second, smart consumption has increased rapidly. The retail sales value of communication equipment by enterprises above the designated size grew by 14.6% over the previous year. The shipment of 5G mobile phones reached 266 million, up 63.5%, which accounted for 76% of total mobile phone shipments in the same period. The sales volume of smart products on many e-commerce platforms, such as smart door locks, smart bathrooms, and floor-sweeping robots, increased by more than 30%.

Third, green consumption is booming. Taking the sales of automobiles as an example, the sales volume of new energy vehicles reached 3.521 million, an increase of 1.6 times over the previous year. It means that, for every 8 vehicles sold, 1 was a new energy vehicle. And the used car transaction volume, which reflects the circular economy, reached 17.585 million units, an increase of 22.6%. And the ratio of used cars sales to new vehicles sales reached 0.67 to 1.  

Fourth, ice and snow consumption continued to rise. As we all know, the Beijing Winter Olympics will be held in a couple of days. There has been a boom in ice and snow consumption in different places. While following proper epidemic prevention and control procedures, many places, such as Beijing, Jilin, Heilongjiang, Shanghai, and Hubei, have launched various kinds of ice and snow consumption activities. Meanwhile, the sales volume of ski products on several e-commerce platforms more than doubled.

These are the highlights and features of the consumption. At the same time, it has been noticed that consumption in many regions, industries, and varieties has recovered slowly due to the pandemic and other factors. Micro, small and medium-sized enterprises and self-employed individuals are still confronting difficulties in their operations. As a result, we should still make further efforts to maintain the steady development of consumption.

China News Service:

In 2021, China hit another record high on its scale of foreign investment. What are the prospects for this year? The Central Economic Work Conference proposed that national treatment should be implemented to foreign-invested enterprises to attract more investment from multinational corporations. What new measures will the Ministry of Commerce take in this regard? Thank you.

Chen Chunjiang:

Thank you for your question; I'll answer it. The world is experiencing the combined impacts of major changes and a pandemic unseen in a century. And the external environment has become more complicated. The work of stabilizing foreign investment still faces significant challenges. The United Nations Conference on Trade and Development (UNCTAD) predicts that it will be difficult to achieve rapid growth on global cross-border investment this year. The restructuring of the international industrial chain has become more nearshore, localized, and regional, and the competition for attracting investment among countries has intensified. In addition, the global epidemic has continuously affected cross-border investment promotion activities. At the same time, domestic enterprises have also been facing the pressure of rising prices for labor, land, and raw materials.

Despite these challenges, we possess the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core. We have the advantages of the socialist system with Chinese characteristics. We have maintained a leading global position in economic development and Covid-19 response. We also enjoy favorable conditions, such as a complete system of industries, improved infrastructure, and abundant human resources. And there are many super-large markets to attract foreign investment. Therefore, foreign investment in China is generally expected to be good. Reports from major foreign chambers of commerce show that China has still been one of the major investment destinations for multinational corporations. For example, the German Chamber of Commerce in China just released the 'business confidence survey 2021/22' last week. Its results show that German companies in China have confidence in the growth of the Chinese market. And 71% of companies plan to continue to increase investment in China. So, in general, we are confident we will maintain stable foreign investment in 2022.

We will fully implement the principles of the Central Economic Work Conference, adhere to the general principle of pursuing progress while ensuring stability, and focus on 'stabilizing the overall performance of foreign trade and foreign investment.' Also, we will follow the requirements of the National Business Work Conference, focus on maintaining the existing stock, explore increments, and optimize the structure. We will focus our work on the following six areas.

First, we will make continued efforts to open China to the outside world at a higher level. We should fully implement the national negative list and pilot FTZ negative list for foreign investment (2021 Edition) to ensure that the opening-up measures in automobile manufacturing and other sectors are taken effectively to attract more multinational companies to invest in China.

Second, we will ramp up efforts to improve support policies. For example, we have revised the industry catalog to boost foreign investment and fully leveraged the effect of preferential policies such as land and tax policies. This will lead to more foreign investment in sectors like advanced manufacturing, modern services, high and new technology, green and low-carbon and the digital economy, and also in China's central and western regions.

Third, we will continuously improve services. We will improve the mechanism of special working groups for key foreign-funded projects, respond quickly to and solve problems encountered by foreign-funded companies in a timely manner, and provide services to ensure the stable operation of the companies. We will ensure services for key foreign-funded projects in land, energy, environmental protection, and personnel entry and exit so as to promote the early signing, production, and fulfillment of projects.

Fourth, we will continuously leverage the role of platforms. We will make use of open platforms such as pilot FTZs, free trade ports, and comprehensive demonstration zones for expanding opening up in the service sector, align them with high-standard international economic and trade rules, and accelerate institution-based opening-up. We will implement the new assessment and evaluation methods for national economic development zones, vigorously develop an open economy, and make them major platforms for stabilizing foreign trade and foreign investment.

Fifth, we will continuously promote investment. We will run a successful 22nd China International Fair for Investment and Trade, hold various forms of investment promotion activities, and promote foreign-funded projects to communicate in key industries. We will organize multinational companies to go on trips around China so as to better support localities in attracting investment.

Sixth, we will continuously improve the business environment. We will effectively implement the Foreign Investment Law and the regulations for its implementation, and continuously improve supporting rules. We will make full use of the mechanism for handling complaints by foreign-funded companies, better protect the legitimate rights and interests of foreign investors, and ensure the national treatment of foreign-funded enterprises. We will strive to create an even better business environment and make China a popular destination for foreign investment.

That is all I have for it. Thank you.

Xinhua News Agency:

My question is about foreign trade. China's foreign trade registered a brilliant performance in the past year, but some agencies predict that it will be difficult to sustain a high growth this year. How does the Ministry of Commerce view foreign trade this year? What are your specific plans for stabilizing foreign trade? Thank you.

Li Xingqian:

Thank you. This is also a question of wide attention to all sectors of society. In general, on top of the $6.05 trillion volume and 30% growth rate last year, the foreign trade situation is grim this year, with unprecedented difficulties and pressure in maintaining steady growth.

From the perspective of demand, global external demand growth faces two big uncertainties. First, the pandemic has repeatedly delayed the recovery of the global economy. According to a new U.N. report, the global economic recovery is under great strain due to COVID-19, labor shortages, supply chain disruptions, and rising inflation. Global growth is forecast to slow from 5.5% in 2021 to 4% this year. The WTO expects growth in the volume of global trade in goods to slow from 10.8% in 2021 to 4.7%. Second, global systemic risks are rising as a result of an uneven recovery. Affected by the vaccination gap and policy differences, low-income countries and developed economies see a widening gap of recovery in between, accompanied by depreciating currencies and high inflation. The rapid withdrawal of stimulus policies in some countries may lead to shrinking demand and price fluctuations, which in turn will affect China's export in related industries.

From the perspective of supply, the global industrial chain and supply chain face two major destabilizing factors. First, the accelerated restructuring of the global supply chain and the one-sided pursuit of bringing industries back by developed economies are dividing the market and reducing the efficiency of global resource allocation. Second, disruptions and bottlenecks in the global supply chain can hardly be thoroughly alleviated in the short term. Problems such as high raw material prices, structural imbalances in shipping capacity, and shortages of essential components like chips have persisted. The overall costs of our foreign trade companies, especially small, medium, and micro foreign trade companies, have risen markedly, while their operating risks and burdens remain high. Therefore, the companies feel reluctant to accept orders even if they have orders out there, while they see no profit increase despite a rise in income.

We should face straight up these difficulties and strengthen our confidence. China's foreign trade sector boasts a solid foundation, and the fundamentals sustaining its long-term growth remain unchanged. This year, in terms of foreign trade, we will give top priority to stability and pursue progress while ensuring stability. We will pay more attention to better quality than higher quantity. With the joint efforts of various localities, departments, and foreign trade companies, we are confident that the foreign trade will get off to a good start and remain within a reasonable range throughout the year.

Based on the current situation, we have designated 2022 as a year for foreign trade to consolidate and advance, with a focus on increasing the comprehensive competitiveness of China's foreign trade. We will take four specific actions:

First, we will take cross-cyclical measures to stabilize foreign trade. We will make our policies serve intended purposes and make further use of export credit insurance, manage credit supply in the foreign trade sector well, and enhance the ability of companies to cope with exchange rate risks. We will further step up trade facilitation and effectively help companies overcome difficulties.

Second, we will adopt a diversified market approach. We will give fully play to the role of the unimpeded trade working groups, make better use of the negotiated or signed free-trade agreement and organize major expos, such as China Import and Export Fair, the CIIE and the CIFTIS, so as to help enterprises in reinforcing their traditional markets and expand emerging ones. 

Third, we will ensure the smooth supply chains for foreign trade. While cultivating various types of platforms and carriers including national industrial parks for processing and trade, demonstration zones for creative promotion of imports and foreign trade transformation and upgrade bases, we will also continue promoting the streamlined flow of goods, materials and settlements.

Fourth, we will encourage high-quality and innovative-based foreign trade. We will harness the leading role of new business forms such as cross-border e-commerce and overseas warehouses, as well as the role of new models to build leading zones for digitalization of global trade and promote the healthy development of green trade. Thank you.

Red Star News: 

China has absorbed 1,149.36 billion yuan in foreign investment in 2021, realizing a double-digit growth. What are the reasons behind this achievement?

Chen Chunjiang:

Thank you for your question. 2021 saw China's first breakthrough in absorbing foreign investment to exceed one trillion yuan, up 14.9% to reach 1,149.36 billion yuan, which equals $173.48 billion, up 20.2%; the average two-year growth was 12.1% compared with 2019, 6.4 percentage points higher than the global average. We attribute such achievements to the following five reasons:

First, the effect of China's opening-up is gradually emerging. China has been committed to opening its door wider to the world, further shortening the negative list for foreign investment, fully lifting foreign equity caps in the automotive industry and clearing barriers for the manufacturing industry in pilot free-trade zones. We have also ensured that the RCEP came into effect as scheduled, officially applied to join CPTPP and DEPA and continuously released active signals. Therefore, more foreign investors have seen more market opportunities and have intensified their investment in China – with 48,000 new enterprises being established in 2021, up 23.5% year-on-year. 

Second, the effect of stabilizing foreign investment is continuously emerging. The MOFCOM has acted with firm resolve to implement requirements made by General Secretary Xi Jinping on stabilizing the overall performance of foreign trade and foreign investment, and promulgated 22 supportive measures on stabilizing foreign investment under new development paradigm in 2021. It has also guided local authorities in issuing more than 140 policies and documents. FDI in eastern, central and western China achieved an all-round growth, increasing by 14.6%, 20.5% and 14.2% respectively, and 20 provinces registered double-digit growth, offering significant support for the stability of foreign investment nationwide.

Third, the driving effects of open platforms are increasingly demonstrated. Investment liberalization and facilitation measures on opening platforms such as free-trade zones, free-trade ports and pilot demonstrations for open services have been released and are attractive investment projects. In 2021, foreign investment rose 19% across 21 pilot free-trade zones, while Hainan Free Trade Port doubled its previous figure in foreign investment. The "1+4" open and comprehensive demonstration zones in service sectors, namely, Beijing, Tianjin, Shanghai, Hainan and Chongqing, account for 33.4% of the national total in foreign investment, exemplifying these high-level opening platforms' strong attraction for foreign investment.

Fourth, efforts in stabilizing market expectations are beginning to show results. A special working group for major foreign projects under the coordination mechanism of foreign trade and investment has strengthened their services for major foreign enterprises, including hosting 75 exchange activities for foreign enterprises, chambers of commerce and associations over the course of the year, guiding local authorities in launching over 1,800 dialogues as well as communicating with more than 40,000 foreign businesses, thus making their policies known to the public and promptly responding to concerns from the enterprises. We have coordinated and resolved more than 1,000 difficulties concerning foreign employees' entry, customs clearance for goods as well as vaccinations for staff members. All these efforts have effectively stabilized the operations of these foreign enterprises. Relevant departments actively released policies and measures targeting some common issues, such as extending preferential individual income tax policies on foreign staff and drafting measures to safeguard foreign businesses' equal access to government procurement. The foreign enterprises had more confidence in market expectations and investments when they truly felt that the Chinese government welcomes foreign investment. A recent survey conducted by the MOFCOM showed that 94.9% of enterprises are optimistic about their future business, among more than 3,000 major foreign companies surveyed.

Fifth, efforts to create a better business environment are paying off. All local authorities and departments have ramped up efforts to sort out laws, regulations, and documents, not in line with the Foreign Investment Law. More than 500 laws, regulations, and documents have been formulated, revised, and repealed. In addition, the MOFCOM has improved the complaint mechanism and related working network for foreign-invested enterprises (FIEs) and helped FIEs coordinate and settle a series of complaint matters, thus protecting the legitimate rights of foreign investment. We continue to foster a business environment based on market principles, governed by law, and up to international standards, to ensure that FIEs can access our market, gain a foothold here and thrive. 

We have successfully completed the tasks of ensuring stable foreign investment in 2021. Generally speaking, this progress is the result of the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core and the joint efforts of all local authorities and all departments. Next, we will firmly implement the arrangements of the CPC Central Committee and the State Council for ensuring stability on the six fronts and maintaining security in the six areas. We will make stability our priority and pursue stable performance while making new progress. Solid measures will be taken to ensure stable foreign investment in 2022, aiming to greet the gathering of the 20th National Congress of the CPC with outstanding achievements. 

These are my answers. Thank you!

Global Times:

There have been sporadic epidemic outbreaks recently. So how does the MOFCOM view China's consumption sector this year? What specific measures will be taken to boost consumption? Thank you.

Xu Xingfeng:

Thank you for your questions. I will answer your questions. Based on a comprehensive assessment, we believe that in general, China's consumption sector will continue to restore development in 2022. Our conclusion is based on three aspects, which are as follows: 

First, despite the sporadic epidemic outbreaks, China has taken a more precisely-targeted and science-based approach in policies of regular COVID-19 prevention and control, thus stabilizing consumer expectations. 

Second, the middle-income group continues to expand, and residents' income has registered steady growth. In 2021, China's per capita GDP surpassed 12,000 US dollars, and residents' per capita disposable income reached 35,000 yuan, up by 9.1% from the previous year. So, the consumer fundamentals are secure. 

Third, the policies and measures on expanding domestic needs and boosting consumption, being put into place and producing positive results gradually, will provide strong support for consumption recovery, meaning the consumption policies are in good shape. 

We conclude through the above analysis that in general, China's consumption sector will continue to restore development.

Next, the MOFCOM will fully implement the guiding principles of the 19th National Congress of the CPC and all the plenary sessions of the 19th CPC Central Committee and put into action the arrangements of the Central Economic Work Conference. We will firmly implement the strategy of expanding domestic demand. We will make it our priority to maintain stability and pursue steady progress. We will coordinate the works on COVID-19 prevention and control and boosting consumption. We will work to promote continued recovery and upgrading of consumption, to better serve the building of a new development paradigm. Our works will focus on the following five aspects:

First, we will upgrade the traditional consumption sector. Automobiles, household appliances, furniture and catering, are the four major consumption sectors and the foundational pillars of consumption. To deepen reform on automobiles circulation, we will promote the transformation from the administration of purchase to the administration of use. We will revise the Measures for the Administration of the Circulation of Second-hand Automobiles and other related regulations to expand the circulation of second-hand automobiles. We will promote the consumption of new energy vehicles. We will also encourage household appliance and furniture replacements. Furthermore, we will push for service consumption, such as catering, to restore development.

Second, we will accelerate new types of consumption. New types of consumption are a major driving force to boost consumption. Next, we will support the development of new business forms and models and new scenarios. New types of consumption, such as smart products consumption, tailored products consumption, experience consumption, and fashion consumption, will be developed. When I answered a previous question, I gave an introduction about the characteristics of innovation-driven consumption. And these are the new types of consumption. We will promote the innovative development of time-honored brands to boost brand-based consumption. We will call for a simple, moderate, and low-carbon lifestyle to increase green consumption. We will work to better play the roles of platforms such as the CIIE and the China International Consumer Products Expo and expand the imports of quality consumer goods. These are new types of consumption, brand-based consumption, green consumption, and imports of quality consumer goods. 

Third, we will step up upgrading urban consumption. The sheer size of urban consumption makes it take up a large proportion of the consumption sector. Therefore, we will speed up fostering and building international consumption center cities, accelerate the high-quality development of pedestrian streets, and pilot the building of smart shopping districts and smart stores to provide urban residents with more quality service. We will also accelerate the development of a "15-minute community life circle" and improve the community-level business service facilities, to provide urban residents with more convenient services. 

Fourth, we will strengthen the weaknesses of rural consumption. The potential of rural consumption is enormous, and the prospects for its development are excellent. Next, we will accelerate the building of the county-level business system and improve the county-level business network and the three-tiered logistics delivery system at the village, township, and county levels. We will also expand the coverage of rural e-commerce. Thus, we will increase farmers' incomes and improve rural consumption. 

Fifth, we will launch campaigns to boost consumption. Provided that prevention and control protocols were duly observed, we will continue to launch events such as the National Consumption Promotion Month, online shopping festivals, which boost brand and quality consumption, and Chinese food festivals. We will also provide guidance for local consumption promotion campaigns that combine business, tourism, cultural, and sports sectors, adopt both online and offline measures, and connect urban and rural areas. In this way, we can keep market expectations stable and bolster consumption confidence.

ThePaper.cn:

What are the achievements and experiences that China's pilot FTZs have secured in terms of expanding opening-up in 2021? How will the MOFCOM arrange the work on pilot FTZs this year? Thank you.

Guo Tingting:

Thank you. I'll take your questions. In 2021, the MOFCOM has worked with relevant government bodies and resolutely implemented the decisions made by the CPC Central Committee and the State Council. We have been playing our part to help foster a new development paradigm. A series of new measures were introduced in pilot FTZs to expand opening-up, and new progress was made in various fields.

First, the MOFCOM released China's first negative list for cross-border trade in services at the Hainan Free Trade Port. The list outlined 70 special management measures in 11 categories and was a breakthrough of China's management model of trade in services. It is also another important measure taken by China to pursue high-level institutional opening up.

Second, the MOFCOM introduced a total of 19 reform and innovative measures concerning trade and investment facilitation and promotion in pilot FTZs. These measures cover five aspects, including the facilitation of trade, investment, international logistics, and financial services in supporting the real economy and exploring the role of the judiciary in guaranteeing trade and investment facilitation. 

Third, the MOFCOM updated the negative list for the market access of foreign investment in its 2021 edition. The number of special administrative measures applied in this edition was reduced to 27, and all measures applied to the manufacturing industry were removed. The openness of China's service industry continues to expand.

Fourth, the MOFCOM promoted the latest group of 18 "best practice cases" involved in trade and investment facilitation, financial services that support real economy, SOE reforms, environmental protection, and other fields. A total 278 achievements concerning systemic innovation were promoted on a national level, which facilitates the continuous improvement of China's business environment.

In 2021, the actual use of foreign capital of all 21 pilot FTZs in China reached 213 billion yuan, and their import and export volume hit 6.8 trillion yuan, up 19% and 29.5% year on year, respectively. With less than four-thousandths of China's land area, these 21 pilot FTZs have achieved 18.5% of the country's foreign investment and 17.3% of the foreign trade, making a great contribution to stabilizing foreign trade and investment.

Looking forward, the MOFCOM will follow the decision being made by the CPC Central Committee and the State Council, doubling the efforts to carry out planning for and promoting the high-quality development of pilot FTZs. The MOFCOM will work to dovetail the construction of pilot FTZs with fostering a new development paradigm and give full play to the exemplary and leading role of pilot FTZs in promoting reform and opening up. Specific measures are as follows:

First, we will further expand the high-level opening-up. We will pilot to align policies in the pilot FTZs where conditions permit and the free trade port with internationally high-standard economic and trade rules in a bid to promote high-level institutional opening up. We will also work to introduce a negative list for cross-border trade in services in pilot FTZs.

Second, we will further carry out deeper reforms. Focusing on key sectors, crucial links, and fundamental institutional arrangements, we will establish pilots of deeper reform, get rid of institutional barriers, and work to achieve more high-quality institutional innovation results. More economic administrative powers at the provincial level will be delegated to pilot FTZs.

Third, we will further take the lead in promoting high-quality development. We will encourage pilot FTZs to carry out integrated innovation throughout the entire industrial chain based on the actual local situation. We will also support them to attract global resources and factors of production of the industrial chain and develop featured and dominant industries in a bid to build more world-leading industrial clusters.

That concludes my response. Thank you.

Xing Huina:

Due to time constraints, we will only have one last question.

Yicai:

We noticed that China's total imports and exports of goods exceeded $6 trillion in 2021. What is the driving force behind China's rapid foreign trade growth? What role has foreign trade played in promoting China's economic development as well as the global economic and trade recovery? Thanks.

Li Xingqian:

Thank you for your care and support for China's foreign trade. Foreign trade growth was a major highlight of China's economic performance in 2021. The fundamental reason is that the Chinese government calmly responded to various risks and challenges while maintaining its position as a global leader in economic development and COVID-19 response, thus fully leveraging its overall foreign trade advantage. There are four major driving forces behind China's rapid foreign trade growth: policies, external demand, supply and new business forms.

First, relevant policies have been prudent and effective. The Chinese government has cherished trade market entities, maintained the continuity, consistency and sustainability of its policies, and launched a series of support policies regarding tax and fee reductions, financing and credit guarantees. Meanwhile, the government has formulated a plan to promote the high-quality development of foreign trade during the 14th Five-Year Plan period (2021-2025) and opinions on accelerating the development of new business forms and models of foreign trade. It has also conducted cross-cycle adjustment. Thanks to these measures, market entities and expectations have been stabilized.

Second, external demand gradually recovered. The global economy as a whole is showing recovery momentum. The WTO estimates global trade in goods grew by 10.8% in 2021. Various countries were controlling the pandemic, resuming production and promoting consumption, which increased the direct and indirect demand for Chinese products. China's exports of intermediate goods, capital goods and consumer goods increased by 27.9%, 13.7% and 13.1%, respectively.

Third, the supply capacity is strong. China has a complete industrial system, with comprehensive supporting facilities and strong resilience within its industrial chain and supply chain. It can quickly adapt to changes in international market demand and swiftly increase supply. At the same time, China and its neighboring countries have formed a regional industrial chain of efficient cooperation, which further enhances our supply advantages.

Fourth, the business format accelerates innovation. China is a fertile ground for the vigorous growth of new business formats and new models such as cross-border e-commerce. Various platforms and merchants have given full play to their advantages in spheres such as online marketing, contactless transactions and short-distance distribution to help foreign trade show a strong momentum of expansion despite COVID-19 impacts. The scale of cross-border e-commerce imports and exports reached 1.98 trillion yuan, an increase of 15%, and market procurement trade exports increased by 32.1%. China now has more than 1,500 comprehensive foreign trade service enterprises and more than 2,000 overseas warehouses, and we've built more than 130 bonded maintenance projects.

In 2021, the achievements of China's foreign trade development were well-rounded and multi-level, which effectively served the construction of the new development pattern and made important contributions to the recovery of the global economy and trade.

From the domestic perspective, foreign trade had three major achievements: First, it has effectively driven GDP growth. Net exports of goods and services drove the annual GDP growth by 1.7 percentage points, with a contribution rate of 20.9%. Second, it promoted stable employment. There were 567,000 foreign trade enterprises with an actual import and export performance throughout the year, directly and indirectly prompting the creation of 180 million jobs. Third, it maintained the stability of the industrial chain and supply chain. It has guaranteed the supply of important resources and key components, playing an indispensable role in safeguarding domestic supplies and stable prices and promoting the smooth operation of various upstream and downstream industries.

From the international perspective, China's foreign trade made at least three major contributions: First, it actively supported the global fight against the pandemic and promoted the building of a community with a shared future for human health. China has exported anti-pandemic materials in an orderly manner and provided more than 2 billion doses of vaccines to the world, making it the world's largest provider. Second, it effectively filled the gap between global supply and demand and provided timely products and services for the production and people's livelihood in various countries. Third, we shared China's development opportunities with the world. We have successfully held important international expos such as the CIIE, the China Import and Export Fair and the CIFTIS. In the first three quarters of last year, China contributed 14.1% to global import growth. China actively advocates free, fair and green trade and deepens bilateral and multilateral economic and trade cooperation. It is the backbone of global economic and trade recovery. Thank you.

Xing Huina:

Thank you to the speakers for summarizing the commerce development in 2021 and sharing the outlook for 2022 with us. If you still have questions, the persons in charge of the press and publicity work of the Ministry of Commerce are also here, and you can continue to keep in touch with them after the press conference. That's it for today's press conference. Thanks to the four speakers, and also thanks to the media friends.

Translated and edited by Yan Xiaoqing, Liu Qiang, Zhang Jiaqi, Zhang Rui, Zhang Tingting, Li Huiru, Cui Can, Liu Sitong, Zhu Bochen, Huang Shan, Ma Yujia, Wang Qian, Wang Yiming, Wang Wei, Gong Yingchun, Yang Xi, Zhang Liying, Jay Birbeck, Drew Pittock and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.