.
Read in Chinese
Speakers:
Wang Wentao, minister of commerce
Wang Shouwen, vice minister of commerce and deputy China international trade representative
Sheng Qiuping, assistant minister of commerce
Chairperson:
Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and SCIO spokesperson
Date:
March 1, 2022
Xing Huina:
Friends from the media, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to be joined by Mr. Wang Wentao, minister of commerce, who will introduce China's efforts to pursue stable and high-quality commerce development, and answer your questions. Also present at the press conference today are Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative, and Mr. Sheng Qiuping, assistant minister of commerce.
Now, I will give the floor to Mr. Wang Wentao.
Wang Wentao:
Thank you, Ms. Xing. Ladies and gentlemen, friends from the media, I am glad to meet you here, and thank you for your constant interest and support regarding China's commerce development. 2021 was a landmark year in the history of our Party and our country. Faced with the complex domestic and international situation, as well as multiple risks and challenges, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we focused on the overarching task of fostering a new development paradigm and performed the important role of commerce development in three aspects. I would like to explain the three aspects. First, commerce development is an important part of the domestic economy; second, commerce development is an important juncture connecting domestic and international markets; and third, commerce development is important to the new development paradigm. Last year, China's commerce development remained stable and exceeded expectations. Specifically, domestic consumption continued its steady recovery, and foreign trade became a highlight of economic growth, hitting a record high in terms of both volume and international market share. Utilized foreign investment grew rapidly, outbound investment remained stable, and multilateral and bilateral economic and trade cooperation achieved new breakthroughs.
This year, we will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the guiding principles of the 19th CPC National Congress and plenary sessions of the 19th CPC Central Committee, carry out the decisions of the recent Central Economic Work Conference, pursue progress while ensuring stability, perform the important role of commerce development in three aspects, firmly implement the strategy of boosting domestic demand, promote continued consumption recovery, stabilize the overall performance of foreign trade and foreign investment, open wider to a high standard, make every effort to maintain steady commerce development, and greet the convening of the 20th CPC National Congress with concrete actions.
Next, my colleagues and I would like to answer your questions. Thank you.
Xing Huina:
Thank you, Mr. Wang. Now the floor is open for questions. Please identify the news outlet you work for before asking your question.
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CCTV:
Consumption is the main driving force behind economic growth. Maintaining the stability of consumption is essential to keeping the fundamentals of the economy stable. Currently, sporadic COVID-19 cases have put great pressure on consumption recovery. How do you view the present consumption situation? What measures will be taken to promote the steady recovery of consumption? Thank you.
Wang Wentao:
Thank you for your questions. As we know, consumption is the main force driving economic growth and directly reflects people's demands for a better life. As I mentioned, last year, consumption continued its steady recovery, with total annual retail sales of consumer goods rising 12.5%. In particular, the online retail sales of goods accounted for 24.5% of the total. In addition, as you may have experienced in your daily life, smart, green and health consumption all grew rapidly. Consumption returned to its place as the primary driving force behind economic growth.
However, we also noticed that there have been some problems with consumption since the fourth quarter last year. Downward pressure mounted, with the growth of consumer goods retail sales registering 4.9%, 3.9% and 1.7% in October, November and December, respectively. In general, we feel that the downward pressure on consumption is huge and we face challenges in keeping consumption stable. We will fully enforce the decisions of the CPC Central Committee and the State Council, firmly implement the strategy of boosting domestic demand, balance COVID-19 measures and consumption promotion, make every effort to advance continuous consumption recovery and upgrading, and enhance the role of consumption in economic growth. Going forward, we will do the following:
First, we will fully implement policies that boost the vitality of consumption market entities. Consumption in areas especially related to people's everyday lives and involving gatherings, such as catering, accommodation and retail, has been particularly affected by the pandemic, and these sectors have faced greater difficulties. In particular, small- and medium-sized enterprises (SMEs) face great pressure on their survival. In line with the decisions of the State Council, 14 ministries jointly introduced policies to support the recovery and development of the service industry. We have released strong, targeted bail-out policies for these businesses, especially micro, small and medium-sized enterprises (MSMEs).
Second, we will come up with innovative ideas and approaches to help consumption promotion activities achieve greater success. Last year, commerce departments at all levels organized a series of activities to promote consumption, such as the national consumption promotion month, the online shopping festival for the Chinese New Year, online shopping promotions to boost brand and quality consumption, and time-honored brand carnivals. According to our evaluation, these activities played a positive role in promoting consumption. This year, provided that the prevention and control protocols are duly observed, we will summarize the experience and continue organizing consumption promotion activities. For example, tonight we will hold the launch ceremony for the "Consumption Promotion Month 2022." In the coming period, we will hold various consumption promotion activities integrating online and offline channels, such as consumer goods expos, automobile fairs, and household consumption seasons, to keep the consumption of essential goods stable. We will also organize ice and snow-themed consumption promotion activities as the enthusiasm for winter sports is high thanks to the 2022 Beijing Winter Olympics.
Third, we will continue to serve for a better life and create a consumption upgrade platform. In terms of cities, last year, we set the target of developing five international consumption center cities. After a one-year cultivation, we will summarize and improve. Meanwhile, we will continue to promote the high-quality development of pedestrian streets, build demonstration smart business districts and smart stores, and accelerate the construction of 15-minute radius community circle to facilitate people's life. We will also encourage the development of new business forms and models and new scenarios. Last year, I also mentioned that innovations had been made in many places, where featured streets, internet-famous sites, amid other sites, were built. We will support the development of "first-store economy" and "debut economy" in regions where conditions permit, promote new types of consumption such as customization, experience, intelligence, and fashion consumption, and develop green and healthy consumption to better meet people's aspirations for a better life. Thank you.
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The Paper:
Building a globally oriented network of high-standard free trade zone is an important measure to align with the high-standard international economic and trade rules and promote institutional opening-up. What is the latest progress made by China in implementing the free trade zone upgrading strategy and building a high-standard free trade zone network? What will be the next step to upgrade the building of free trade zones? Thank you.
Wang Wentao:
Thank you for your questions, and I will answer these questions as well. Your questions involve two aspects: One is about progress, and the other is how to improve next.
First, through nearly 20 years of efforts, we have made more friends in the field of free trade, and the content of free trade agreements is increasingly rich in substance, and the level has also improved. A globally oriented network of high-standard free trade zones, which is based on the surrounding areas and stimulates the development of Belt and Road countries, is emerging. According to statistics, we have signed 19 free trade agreements with 26 countries and regions, and our trade partners cover Asia, Oceania, Latin America, Europe, and Africa. Our trade volume with free trade zone partners accounts for about 35% of our total trade. In particular, the Regional Comprehensive Economic Partnership (RCEP) took effect on Jan. 1 this year, which drew close attention. It means that the world's most populous free trade zone with the largest economic and trade scale has been officially launched. We also took this opportunity and worked with five other departments to issue guidelines to promote high-quality RCEP implementation, and launched targeted training programs to improve capabilities of enterprises in making use of the RCEP. I also take this opportunity to call for all regions, departments, especially departments in charge of commerce, and some institutions, to help enterprises strengthen training in this regard and help them learn more about the content of RCEP. Meanwhile, we call for enterprises to search online, and relevant information is available on our website. If they still have questions, they can call us or email us, or contact departments in charge of commerce at all levels, including the MOFCOM. We are willing to help enterprises learn more about the agreement and help them make use of the clauses as soon as possible to inject new vitality into their development. As partners of the RCEP gradually cut their tariffs, I hope that enterprises pay attention to clauses on cumulation in the section of the rules of origin. Dividends of the RCEP will be released gradually, and they will get more real money benefits.
The second question is about how to improve next. We will resolutely implement the decisions of the CPC Central Committee and the State Council, and focus on expanding the coverage and improving the quality and efficiency, implement the strategy of upgrading free trade zones, promote better integration of the domestic and international markets and greater complementarity between domestic and global resources to provide institutional guarantee for higher-level opening up and serve the establishment of the new development paradigm. Last year, we formally applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA), which shows our determination and confidence in deepening reforms and opening up and genuine interest in enhancing global cooperation in the digital economy and promoting innovation and sustainable development. China has contacted, communicated, and negotiated with members of the two agreements. We have also taken the initiative to align ourselves with high-standard international economic and trade rules, comprehensively deepen reforms and accelerate institutional opening up.
Meanwhile, we are also working on free trade agreement negotiations, including China-Gulf Cooperation Council (GCC), China-Ecuador, China-Israel, China-Norway and China-Japan-ROK free trade agreements, and have actively promoted the upgrade of free trade agreements, such as the 3.0 version of China-ASEAN (Association of Southeast Asian Nations) free trade agreement. We are also willing to hold discussions with other economies and countries to explore the signing of free trade agreements. We have actively participated in negotiations on new rules of digital economy, environmental protection and other fields to jointly promote regional economic integration and the liberalization and facilitation of trade and investment. Thank you.
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Nikkei:
What progress has there been since China applied to join the CPTPP last September? Some member countries believe that China needs to solve many problems, including issues related to state-owned enterprises, electronic data, and government procurement, in order to join the CPTPP. Could you introduce the specifics as to how the Ministry of Commerce (MOFCOM) negotiates those problems with the CPTPP members? Thank you.
Wang Shouwen:
Thank you for your questions. China formally applied to join the CPTPP last September, which has drawn great attention from the international community and given rise to positive repercussions in China and abroad. We all believe that China's application for joining the CPTPP is an important opening-up measure in the new era. Before formally applying to join the CPTPP, we conducted full, comprehensive, and in-depth analysis, research, and evaluation of the CPTPP clauses. Based on CPTPP regulations, we sorted out our laws, regulations and reform measures that need to be improved or modified. At present, we are communicating and negotiating with the relevant members in accordance with CPTPP accession procedures.
It is acknowledged that the CPTPP is a high-standard international economic and trade agreement. What I want to point out, in particular, is that the high standard is in line with China's path to deepen reform and expand opening-up. We are also willing to attain the standard of the CPTPP in all respects through actively deepening reform and expanding opening-up. Mr. Wang just mentioned that China has signed many free trade agreements. To join the CPTPP, the efforts to relax market access will be stronger than the existing agreements and practices we have made before. The efforts are conducive to continuing the opening-up and deepening reform and to the high-quality development. At the same time, it will be helpful for the 11 member states of the CPTPP to expand further their market access to the second-largest economy in the world and promote their cooperation with China in goods and services trade, investment, and other sectors.
You mentioned that there are problems. Indeed, the CPTPP covers many sectors, and some of the articles are more complicated and sensitive. However, we believe that the CPTPP is in line with China's general direction of opening-up and reform. For example, the CPTPP rules require state-owned enterprises (SOEs) to compete fairly with other types of companies, which is the core requirement concerning SOEs. This is also in line with the direction of the market-oriented reform of SOEs we pushed for. As independent market entities, SOEs in China operate their business on a commercial basis. They compete fairly with private enterprises and foreign-invested enterprises. And their operations are in line with the market-oriented and law-based principles. Therefore, China is now qualified to fulfill its duties concerning the requirements for SOEs.
You also mentioned the rules and regulations on e-commerce. Pertinent regulations and rules on e-commerce within the CPTPP are quite strict, which are in line with China's efforts in recent years, such as participating in international cooperation on the digital economy, and continuing to optimize the digital business environment. In recent years, it is known that China has adopted three laws: the Data Security Law, the Cybersecurity Law, and the Personal Information Protection Law. Currently, related departments are mulling over supporting rules and regulations, or implementation guidelines, that are related to the three laws. In addition to working on the supporting rules and regulations, we will also consider the standards of the CPTPP, working to meet the requirements of it. Therefore, in terms of all the issues and articles of CPTPP, we are preparing to discuss and negotiate with related member states in detail. President Xi Jinping announced that China would work actively for joining the CPTPP. We are willing to make concert efforts with all parties to further regional trade and economic integration and contribute to regional economic development and global economic recovery. Thank you.
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CGTN:
We know that in 2021, China's foreign trade grew 21.4% to 39.1 trillion yuan. There are reports saying that due to such a high base, China will face greater pressure and challenges in stabilizing foreign trade this year. So, what's your take on that? In addition, would you like to introduce the measures taken by the Ministry of Commerce to ease difficulties for export companies? What are the arrangements for stabilizing industrial chain and supply chain? Thanks.
Wang Wentao:
Thank you for your questions. I'd like to answer your questions. Your questions are mainly about how to see and how to do.
About how to see, you mentioned that China's foreign trade grew by 21.4% to 39.1 trillion yuan last year, which is in yuan terms. While in U.S. dollar terms, China's foreign trade move up another notch to $6.05 trillion, exceeding $5 and $6 trillion consecutively, with a growth rate of 30%, the highest number since 2010. Net exports of goods and services contributed 20.9% to the economic growth. In the first three quarters of last year, in U.S. dollar terms, the share of China's foreign trade in the global market hit a record high. It reached 15%, the highest since 1958 as a single economy in the world, which injected new impetus to world economic recovery and development. The strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core has been fundamental to the hard-won achievements we made last year. And such achievements could not have been made without the consistent hard work of China's export companies.
You just mentioned that certain reports questioned how China will do this year on such a high base. I believe that not only reports, our research also showed that we will face huge pressures this year, and the situation is quite complicated and serious. The Central Conference on Economic Work pointed out the threefold pressure faced by the Chinese economy in 2022, namely the contraction of demand, supply shocks, and weaker expectations. In terms of demand contraction, repeated resurgences of the COVID-19 pandemic still exist around the world, the global recovery is somewhat shaky, and foreign demands remain uncertain. Certain international organizations, such as IMF and World Bank, have downgraded the global economic growth forecast of 2022. The latest report from WTO signaled a cooling of merchandise trade growth. In terms of supply shocks, we have seen that the supply of raw materials and bulk commodities is still not back on track. In other words, the bottlenecks in the supply chain are still not addressed, which we estimate is also hard to be eased in the short term. In terms of weaker expectations, export companies are still beset by shortages of containers and labor. And the price of raw materials and shipping costs are still relatively high. According to our surveys, in particular, the earning performance of some small and medium-sized export companies is not optimistic, which also shakes their confidence to receive orders.
In addition, some short-term factors influencing the export faded away. We also analyzed that. Last year, China's foreign trade registered a high growth rate attributable to certain short-term factors. For example, more orders were received at home instead of overseas. Factors also include exporting epidemic prevention supplies and the "stay-at-home economy." With such factors fading away, China will face more significant challenges in stabilizing foreign trade this year. Also, you mentioned the high base in your question. China's foreign trade grew by 30% last year, in U.S. dollars terms. The pressure to expand the growth is quite considerable on such a high base.
In the face of these difficulties and challenges, we have stepped up efforts to implement policies in accordance with the plans of the CPC Central Committee and the State Council, and rolled out multiple measures to stabilize the foreign trade, including special actions of adopting cross-cyclical adjustment measures, diversifying market, ensuring smooth operation of the supply chains for foreign trade, and promoting innovative and high-quality foreign trade. In the first two months, the foreign trade has basically maintained stable, a stable start of the year. We are confident to accomplish the targets and tasks for the whole year and keep the fundamentals of foreign trade and foreign investment stable. Our efforts will focus on the following three aspects:
First, we will implement policies and prepare for policy options for stabilizing foreign trade. We will work with all local governments and departments to implement the Opinions on Further Stabilizing Foreign Trade by Adopting Cross-Cyclical Adjustment Measures released by the State Council at the end of last year. We will fully implement the policies on tax and fee cuts, make full use of measures on finance and insurance to benefit businesses, and make meticulous efforts to adopt measures on facilitating trade in order to help businesses, especially micro, small and medium businesses, secure orders, stabilize market expectations, and expand market. Meanwhile, we will keep a close eye on external demand and foreign trade and enhance monitoring and early warnings for policy options.
Second, we will guarantee the stability and smooth operation of the industrial and supply chains for foreign trade. Due to the impact of the pandemic and regional conflicts, the flow of people and port operations are still impeded, the problems of barriers and disruption in the global industrial and supply chains remain prominent whilst some new problems emerge. We will promote the transformation and upgrading of foreign trade bases, support the steady development of processing trade, foster a new batch of the on-site processing on a pilot basis from trade between border residents, further promote the integration of domestic and foreign trade, and foster trade enterprises fitting in with China's dual circulation development paradigm, where domestic and overseas markets reinforce each other. We will also strengthen international cooperation to facilitate international logistics and settlement, improve the level of trade facilitation, and promote upstream and downstream coordination of industrial and supply chains
Third, we will continue to promote innovative development of foreign trade. In order to promote the steady and high-quality development of foreign trade, enhance its comprehensive competitiveness, we need to give higher priority to innovative development. Last month, the State Council approved the establishment of 27 new comprehensive pilot zones for cross-border e-commerce. Today, the new list of imported goods for cross-border e-commerce retails has been officially implemented. The goods on the list have been further increased with categories expanded. Meanwhile, we will strength our support for the development of overseas warehouses, build and improve overseas warehouse networks, promote the construction of overseas intelligent logistics platforms, cultivate a number of offshore trading centers in cities (regions), develop and expand new forms and models of foreign trade, and promote the development of trade at a higher level and with higher quality. We will also develop demonstration zones for the innovative development of trade in services, create a number of digital pilot zones for global trade, and develop green trade. Thank you.
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Southern Metropolis Daily:
The Belt and Road Initiative (BRI) is making continuous progress. What new plans will the MOFCOM make this year to promote the initiative in order to foster a new pattern of development? Thank you.
Sheng Qiuping:
Thank you for your question. In the past eight years since the BRI was introduced, China has worked with those countries concerned to uphold the principle of extensive consultation, joint contribution, and shared benefits, and made substantial progress in promoting hard connectivity, soft connectivity, and connectivity of the heart. So far, the BRI has become an international public goods as well as a platform for international cooperation, winning more friends.
Last year, thanks to the joint efforts of all parties, economic and trade cooperation under the BRI continued to deepen and deliver tangible results by overcoming the pandemic and other difficulties, injecting new momentum into global opening-up and cooperation as well as world economic recovery. China's trade with countries along the Belt and Road reached $1.8 trillion, up 32.4% year on year. China's direct investment in these countries stood at $21.46 billion, an increase of 15.3%. China attracted $11.25 billion in foreign investment from these countries, reflecting a 36% rise. All the growth rates are higher than the overall growth. The turnover of China's contracted projects in these countries reached $89.7 billion, accounting for 57.9% of the total.
This year, we will put into practice the guiding principles from President Xi Jinping's speech at the third symposium on the development of the Belt and Road Initiative, precisely grasp the overall requirements for developing the BRI under the new circumstances, strike a balance between rural and urban development, between regional development, between economic and social development, between human and natural harmonious development, and between domestic development and opening-up, and make solid progress in high-quality development of the BRI. We will focus on the following five aspects:
First, we will continue to consolidate fundamentals for cooperation. The BRI is a way of cooperate. Trade and investment cooperation is an important part of the initiative. We will further tap the potential of trade with countries along the Belt and Road, and encourage more imports of quality goods. We will continue to expand three-party and multi-party market cooperation to promote smooth connectivity between industrial and supply chains. We will speed up building a network of free trade zones covering the Belt and Road Initiative, and promote trade and investment liberalization and facilitation.
Second, we will steadily expand new areas of cooperation. A new round of scientific and technological revolution, as well as industrial transformation, is gaining momentum, and countries are more willing to cooperate in the digital economy, green and low-carbon fields. We will actively foster new growth areas for cooperation, deepen the development of Silk Road e-commerce, enhance cooperation in digital trade and new infrastructure, and boost the building of a digital cooperation paradigm. We will also promote green development in outbound investment and cooperation, and strengthen cooperation in areas including new energy, energy conservation, environmental protection, and green infrastructure.
Third, we will build high-quality landmark projects. Over the years, a number of major cooperation projects and livelihood projects have achieved effective results, bringing tangible benefits to the economic development of host countries and improvements in people's livelihoods. For example, the overseas economic and trade cooperation zones set up by Chinese enterprises have paid a total of $6.6 billion in taxes and fees to host countries and created 392,000 local jobs. Next, we will focus on agriculture, poverty reduction, sanitation, health and other fields, and prioritize the construction of more "small and beautiful" projects to enhance the sense of gain among people in host countries. At the same time, we will actively push for the China-Europe rail cargo transport to develop jointly with various cooperation zones and to integrate with new business models such as cross-border e-commerce and overseas warehouses.
Fourth, we will allow mechanisms and platforms to play a greater role. Since the beginning of this year, the Belt and Road economic and trade cooperation mechanism has been continuously improved. We have established working groups for unimpeded trade with 17 countries, established investment cooperation working groups with 46 countries and regions, and established cooperation mechanisms for such areas as e-commerce and service trade with many countries. We will continue to diversify such cooperation mechanisms, continue to hold major international and regional expos, improve the standard of economic and trade exchanges and cooperation at all levels, and provide better services and guarantees for the joint building of the Belt and Road Initiative (BRI).
Fifth, we will comprehensively strengthen risk prevention and control. Currently, the pandemic is still raging worldwide, geopolitical risks are increasing, and unilateralism and protectionism are intensifying, meaning the international environment for the joint pursuit of the BRI is becoming increasingly complicated. We will pay close attention to the global pandemic situation, promote international anti-pandemic cooperation, and strengthen various risk assessments, monitoring and early warnings. We will also guide enterprises to refine their work plans, standardize their overseas business operations, advance trade and investment cooperation and project construction in a steady and orderly manner, and ensure the safety of personnel and projects of Chinese enterprises.
In short, the MOFCOM will perform the important role of commerce development in three aspects, further promote the high-quality development of the Belt and Road, comprehensively promote a higher level of opening-up, and fully serve the building of a new development paradigm. Thank you.
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Yicai:
This January, China's foreign investment increased by 11.6% year on year, demonstrating that China's attractiveness to foreign investment has not diminished under external uncertainties such as repeated coronavirus flare-ups overseas. What are your predictions for China's foreign investment this year? And going forward, what measures will be taken to stabilize the scale and optimize the structure of foreign investment? Thank you.
Wang Wentao:
Regarding the issue of foreign investment, I would like to answer your questions. Over the past two years, due to the impact of the pandemic and adjustments to the global industrial chain and supply chain structure, global cross-border investment has fluctuated greatly. However, China's utilization of foreign investment has maintained steady growth. China has constantly been an attractive destination for foreign investment. In 2021, China's foreign investment hit a new record high, breaking the 1 trillion yuan mark for the first time and reaching 1.15 trillion yuan. This is the first time in the past decade that we achieved double-digit growth, with a growth rate of 14.9%. In terms of U.S. dollars, this figure is $173.5 billion, with a growth rate of 20.2%, and a two-year average of 12.1%. The proportion of foreign investment in high-tech industries exceeded 30% for the first time. The situation of this January was stable and the momentum was relatively good. The actual use of foreign investment in the country maintained double-digit growth, with a growth rate of 11.6%. The Central Economic Work Conference emphasized increasing efforts to attract foreign investment, and we will thoroughly implement this, mainly by further expanding high-level opening-up and further optimizing the business environment. The main direction of the efforts will be in two aspects: one is maintaining stability and the other is promoting excellence. Next, I would like to talk about these two aspects.
The first is maintaining stability, that is, stabilizing the stock of foreign investment and increasing the amount. We will further ease market access for foreign capital. In recent years, we have continued to relax market access, and have reduced negative lists for foreign investment access across the country and in pilot free trade zones for five consecutive years. Last year, we released the negative list of cross-border trade in services for the Hainan Free Trade Port. In addition, we must give full play to the role of some platforms for opening-up in attracting investment. These platforms include 21 pilot free trade zones, the Hainan Free Trade Port, 230 national economic development zones, and the "1+4" localities for showcasing and piloting wider opening-up in service sector. There are also some platforms, such as major expos including the China International Fair for Investment and Trade (CIFIT) and the China International Small and Medium Enterprises Fair (CISMEF), to promote business matchmaking, and attract the signing of more project contracts. We will further strengthen service guarantees. We have a special task force for key foreign-funded projects under the foreign trade and foreign investment coordination mechanism, which is a special team serving enterprises. With this special team, services are more efficient and precise. Last year, we coordinated and resolved more than 1,000 issues reported by foreign-funded enterprises and projects, especially issues we identified as being shared by numerous foreign-funded enterprises, which was welcomed by foreign-funded enterprises. For example, we promoted the introduction of policies to ensure that foreign-funded enterprises can participate in government procurement on an equal footing. Last year, foreign-funded enterprises reported that the relevant ministries and commissions had solved this issue. The special task force will continue to boost services to help enterprises stabilize investment, production and operation, and promote the early signing of projects, early start of production and early reaching of production goals. We will continue to support the promotion of investment everywhere. General Secretary Xi Jinping made a request to the China International Import Expo (CIIE), emphasizing turning exhibits into commodities, and exhibitors into investors. With so many exhibitors coming, how can exhibitors be turned into investors? This presents us with a task. Last year, we used the platform of the CIIE to launch a series of roadshow activities in various regions, the first stop being Sichuan province. I attended the CIIE's Sichuan roadshow event, and saw that 78 exhibitors and 164 enterprise executives participated, which led to a batch of projects settling in Sichuan. This year, we will continue to carry out similar activities to promote the CIIE in local areas, especially in central and western provinces. This is the first aspect I want to talk about.
Second, "advancement" means improvement in structure and quality. Recent years have seen continuous efforts in upgrading the use of foreign investment, for example, high-tech manufacturing industries and high-tech services industries logged an increase of 17.1% and 23.7%, respectively, in absorbing foreign capital last year, and the growth rates in China's central and western regions were above the national average level. However, we also noticed that both the scale and proportion of foreign investment in the manufacturing industry have decreased. In 2021, the scale dropped by 4.6% as against the figure of 2019; the proportion was reduced to 19.4%, which requires us to pay more attention. China is forging ahead from a large manufacturing country toward a manufacturing power and must focus on bringing more foreign funds to this industry. Therefore, we will further intensify support for absorbing more foreign investment, amend the Catalogue of Encouraged Industries for Foreign Investment to include more sectors, and guide more overseas investment into the advanced manufacturing industry, emerging industries of strategic importance, the digital economy, green development, and other areas. Meanwhile, as I just mentioned, China's central and western regions grew at a faster pace in absorbing foreign investment than the national average and have huge potential. China has a vast territory, and its western part has abundant natural resources and adequate labor force. In recent years, China's central and western regions have strengthened their industrial supporting capacity, in particular, the transport infrastructure, which connects China and overseas countries. For example, the launch of China-Europe freight trains and the construction of new land-sea corridor are all driving the growth of imports and exports. After the upgrading of certain airports in the western region, the capacity of land and air transport has been significantly improved. As a result, while pursuing a deeper development in those regions, we will call on more attention from foreign enterprises since the regions have huge potential untapped: a large population, residents' increasing consumption capacity and purchasing power with the growth of the local economy. We will well implement regional plans targeted on both major strategy and coordination development, help these regions bring into full play their advantages, foster new industries, facilitate a smooth transfer of coastal industries to the inland, and create a new growth pole in attracting foreign investment. Thank you!
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21st Century Business Herald:
Since the RCEP took effect on Jan. 1, trade between China and ASEAN countries has been growing rapidly.
How does the MOFCOM view their further cooperation, and what are MOFCOM's following considerations and arrangements? Thank you!
Sheng Qiuping:
Thank you for your questions. China and ASEAN countries have been old neighbors, good friends, and good partners as they enjoy unique geographical proximity, cultural affinity, and complementary advantages. The year 2021 marks the 30th anniversary of the establishment of China- ASEAN dialogue relationship. Over the past three decades, China-ASEAN cooperation has seen remarkable progress, and the China-ASEAN economic relationship achieved leapfrog development. Last year, trade and economic cooperation between the two sides maintained good momentum, showing strong resilience and huge potential.
First, trade has further expanded. Since 2009, China has remained ASEAN's largest trade partner for 13 consecutive years. Last year, the trade volume hit a new record, reaching 878.2 billion U.S. dollars, accounting for 14.5% of China's total foreign trade. The ASEAN has been China's largest trade partner for two consecutive years, with the trade structure being continuously improved and the industrial and supply chains being connected more closely.
Second, the two-way investment has been booming. As of the end of 2021, the China-ASEAN two-way investment registered about 300 billion U.S. dollars. A large batch of projects has been brought forward under their joint efforts. Industrial parks are one of the highlights. Chinese enterprises have established economic and trade cooperation zones in Thailand, Indonesia, Vietnam, and other ASEAN countries, which has played an important role in local industry development. Good examples for such cooperation include the China-Singapore Suzhou Industrial Park; the China-Malaysia Cooperation on the "Two Countries, Twin Parks" (specifically China-Malaysia Qinzhou Industrial Park and Malaysia-China Kuantan Industrial Park); the China-Indonesia Cooperation on the "Two Countries, Twin Parks" (specifically the Yuanhong Investment Zone in Fuqing; Fujian Province as the Chinese park; and the Bintan Industrial Estate, the Aviarna Industrial Estate, and the Grand Batang City (collectively known as the Indonesian park).
Third, connectivity has been increasingly strengthened. The two sides have advanced the docking of the Belt and Road Initiative with the Master Plan on ASEAN Connectivity 2025 and boosted connectivity. Means of cooperation have been innovated, and a batch of infrastructure projects covering railway, highroad, ports, airports, bridges, and electricity grids have been advanced or completed. The China-Laos Railway started operation and the China-Singapore connectivity project, dubbed the "New International Land-Sea Trade Corridor," have seen remarkable progress.
Fourth, regional economic integration has been accelerated. As you have mentioned, the RCEP took effect on Jan. 1, as scheduled, through the joint efforts of China and ASEAN countries. On the same day, the China-Cambodia Free Trade Agreement also came into force. The two sides have also agreed to upgrade the China-ASEAN Free Trade Area to a higher level so as to promote trade and investment liberalization and facilitation.
In November last year, President Xi Jinping announced the establishment of a comprehensive strategic partnership with ASEAN leaders at the ASEAN-China Special Summit to Commemorate the 30th Anniversary of ASEAN-China Dialogue Relations, which is a new milestone in the history of China-ASEAN relations. Standing at a new historical starting point, we will work with the ASEAN to fully implement the important consensus reached by the leaders of both sides, push China-ASEAN economic and trade cooperation to a new level, and build a closer China-ASEAN community with a shared future.
First, we will deepen trade and investment cooperation. President Xi Jinping announced at the summit that China will import $150 billion of agricultural products from ASEAN in the next five years. We will actively promote the implementation by making good use of exhibition platforms such as the China International Import Expo and the China-ASEAN Expo and expanding the import of agricultural products and other high-quality products from ASEAN. We will better meet domestic needs through these efforts. In terms of investment cooperation, we will focus on expanding cooperation in new fields such as combating COVID-19, digital economy, green and low-carbon growth, promoting successful cooperation models, and jointly building demonstration parks for economic and trade innovation and development.
Second, we will strengthen the connections between industrial chains and supply chains. We will work with all parties to successfully hold the ASEAN Plus China, Japan, and the Republic of Korea (10+3) forum for cooperation on industrial and supply chains, jointly respond to the new situation and challenges of the global industrial chain and supply chains, and promote the coordination, innovation and sustainable development of the regional industrial chain and supply chains. Furthermore, we will continue to encourage the construction of new land-sea corridors and play a supporting role in interconnection, economic and trade cooperation, and industrial and supply chains.
Third, we will improve the institutional arrangements for economic and trade development. We will work with ASEAN and other parties to implement the RCEP well and promote the agreement to enter into force in more countries. We will expedite follow-up talks to complete the upgrading of the China-Singapore Free Trade Agreement within this year. We will actively promote the third version of the joint feasibility study of the ASEAN–China Free Trade Area, expand cooperation in new fields such as the digital economy, strive to start negotiations as soon as possible, and cooperate with ASEAN to build a more inclusive, modern, comprehensive and mutually beneficial free trade agreement.
In conclusion, in the new year, the MOFCOM will continue to deepen China-ASEAN economic and trade cooperation and promote the building of a closer China-ASEAN community with a shared future. Thank you.
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Phoenix TV:
My question is for Mr. Wang. Despite multiple challenges last year, the economic and trade cooperation between China and Europe was taken up a notch. How do you evaluate the current economic and trade relations between China and Europe, and what are your expectations for the future? Thank you.
Wang Wentao:
Thank you for your question on the current state and outlook.
China and the EU are two major independent forces globally with broad strategic consensus and shared interests. We are significant economic and trade partners who complement each other and conduct mutually beneficial and win-win cooperation. In 2021, despite the complex and severe situation, economic and trade cooperation between China and the EU continued a momentum of rapid growth.
Statistically speaking, both the "quantity" and "quality" of bilateral trade have improved. In terms of "quantity," the trade volume between China and the EU has exceeded $800 billion, hitting a record high. China remains the largest trading partner of the EU, and the EU is China's second-largest trading partner. In terms of "quality," the bilateral trade structure has been continuously optimized, and the growth rate of trade in aerospace, biology, optoelectronics, electronics, materials, and other fields has exceeded 30%. In 2021, the agreement between China and the EU on geographical indications took effect. China-Europe freight train trips hit about 1,000 by month and 10,000 by year. Last year, a record 15000 China-Europe freight train trips were made, up 22% from the previous year.
Steady progress has been made in two-way trade. The two-way trade between China and the EU has exceeded $270 billion, and there are sound investments and cooperation in the fields such as finance, vaccine research and development, new energy, electric vehicles, and logistics. China's investment in the EU increased, bucking the trend. According to a European Union Chamber of Commerce survey in China, 60% of the surveyed companies plan to expand their business in China. Nearly half of the surveyed companies' profits in China are higher than the global average. In October last year, I met with the president of the European Union Chamber of Commerce in China. He told me that many companies were optimistic about the Chinese market and China's future prospects and expressed willingness to continue to increase investment in relevant fields.
Meanwhile, economic and trade exchanges have been deepened. Mechanisms for exchanges at all levels, including the China-EU High-level Economic and Trade Dialogue, continue to play a role, and cooperation platforms between local governments and enterprises have become more complete. For example, the 2nd China-Central and Eastern European (CEEC) Countries Expo was successfully held. Four hundred twenty-five companies from CEEC countries participated in the expo, and 7.46 billion yuan of intentional purchases with CEEC were made. In addition, some EU companies actively participated in the 4th China International Import Expo (CIIE). The number of exhibitors, exhibition area, and intentional deals from EU companies accounted for more than one-third. Ireland was the guest country of honor for the China International Fair for Investment and Trade last year. This year, France will be the guest country of honor for the China International Consumer Products Expo this year.
President Xi Jinping pointed out that the two sides should stay committed to the comprehensive strategic partnership and the principle of mutual respect and mutual benefit, so as to ensure consistent, sound, and steady development of China-EU relations. We believe that China's development is an opportunity for the EU, not a challenge, nor a "threat," as some have claimed. We think that China-EU cooperation outweighs the competition. Of course, we also agree that the history, culture, social system, and development stage between China and Europe are different. Therefore, it is not surprising that some differences and divergence of views exist.. However, the two sides can promote healthy competition by strengthening communication. China and the EU are partners rather than rivals.
In the future, we are willing to work with the EU to implement the important consensuses reached by leaders of the two sides, firmly maintain the direction and underlying principle of China-EU economic and trade relations from a strategic perspective, synergize the Belt and Road Initiative with the EU's Global Gateway strategy, expand areas of cooperation, and deepen cooperative mechanisms. The two sides can advance pragmatic cooperation in various fields such as epidemic prevention and control, green development, digitization, finance, and technology, advance the process of ratification and entry into force of the China-EU investment treaty, and inject stability and positive energy into the China-EU relationship.
We can strengthen coordination and cooperation under multilateral frameworks such as the G20, UN, and WTO, promote the implementation of the Global Development Initiative, uphold the WTO-centered multilateral trading regime, and jointly promote the WTO reform in moving in the right direction. We should uphold openness and inclusiveness, reject the zero-sum mentality, oppose protectionism, and deepen market opening-up. We can strengthen cooperation between China and the EU as well as in third-party markets so as to contribute to the economic development of both sides and promote the economic recovery and stability of the whole world. Thank you.
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China News Service:
Establishing pilot free trade zones (FTZs) is an important measure of the CPC Central Committee for advancing reform and opening up in the new era. Through explorations based on differentiated conditions and stress testing, pilot FTZs are expected to accumulate experience for high-standard opening-up. What achievements did the MOF make in promoting the construction of pilot FTZs last year? And what measures will be taken this year to further promote their high-quality development? Thank you.
Wang Shouwen:
Thank you. In July last year, General Secretary Xi Jinping presided over the 20th meeting of the central committee for deepening overall reform. Xi spoke highly of the achievements already made in the construction of pilot FTZs and made clear requirements for future work. The MOF, together with other relevant departments and localities, resolutely implemented General Secretary Xi Jinping's important instructions, and in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, made new progress in the construction of pilot FTZs.
First, we further broadened market access, as Minister Wang Wentao just mentioned, and released China's first negative list for cross-border trade in services in South China's Hainan Free Trade Port. The adoption of the negative list represented a major breakthrough in China's management model of cross-border service trade as well as a major step forward in promoting the further opening up in cross-border trade in services.
Second, we further shortened the negative list for market access of foreign investment in pilot FTZs. As we know, China released the first such negative list in 2013. In 2020, the number of items on the negative list was reduced to 30 after six adjustments. Last year, the number of items was further reduced from 30 to 27. China has kept opening wider to the world in investment.
Third, we rolled out a slew of reform measures to boost trade and investment facilitation. We specifically issued a document to grant pilot FTZs greater decision-making power for reforms with 19 measures to enhance trade, investment, international logistics, and the degree of convenience for the financial sector to serve the real economy and to explore judicial guarantee for trade and investment facilitation. We also issued policy documents to strengthen the protection of the ecological environment, pursue high-quality development, and strengthen fair competition.
Fourth, we continued to achieve institutional innovation. Establishing pilot FTZs is not just for the development of some regions. More importantly, it is to accumulate rich experiences for major national strategies. Last year, we unveiled a new batch of 18 best-practice cases. Until now, China's pilot FTZs have seen their successful practices in 278 institutional innovations promoted on the national level.
Fifth, we promoted the development of pilot FTZs. For example, the pilot FTZs have contributed to the stability of the overall performance of foreign trade and foreign investment. Last year, the use of foreign investment in China's 21 pilot FTZs rose 19%, 4.1 percentage points higher than that of the whole country. Their imports and exports increased by 29.5%, 8.1 percentage points higher than that of the whole country. Although the pilot FTZs are small in size, they contribute 18.5% to the total use of foreign investment in China and 17.3% to the country's imports and exports.
This year, we will continue to resolutely implement General Secretary Xi Jinping's important instructions and further promote the high-quality development of pilot FTZs.
First, we will pilot institutional opening-up in line with international high standards in pilot FTZs and free trade ports with the right conditions. As Minister Wang Wentao mentioned, China already took some new measures concerning free trade agreements, including applying to join CPTPP and DEPA. Drawing on these high-standard free trade agreements, we will step up efforts to explore and promote institutional opening-up in the fields of trade in goods, trade in services, e-commerce and intellectual property rights.
Second, we will promote the formulation and implementation of a negative list for cross-border trade in services applicable to all pilot FTZs. Last year, we issued a negative list for cross-border trade in services in Hainan Free Trade Port. On the basis of this list, we will formulate a negative list that will apply to all the 21 pilot FTZs this year so as to expand the scope of opening-up and accumulate experience for wider opening-up in the future.
Third, the MOFCOM will further support the growth of export-oriented industries and contribute to the dual circulation development paradigm where domestic and overseas markets reinforce each other. We will provide targeted suggestions for pilot FTZs and let them carry out whole-industrial-chain opening up and innovation based on their strategic roles, local conditions, and comparative advantages. We will improve the precision of our work on investment attraction, strengthen the effort on attracting industrial chain investment, and optimize service systems for overseas investment. We will also attract global resources of the industrial chains and accelerate the construction of competitive export-oriented industrial clusters so as to give full play to the leading role of pilot FTZs in carrying out high-level opening up.
Fourth, the MOFCOM will further put forward a new set of measures that are proven to work in pilot FTZs and can be replicated and applied elsewhere. We will give full rein to the initiative of pilot FTZs, strengthen explorations based on their differentiated conditions, and put forward more systemic innovation achievements that can be replicated and applied elsewhere. These achievements should be piloted at the provincial level, and those with fruitful results should be compiled as the seventh volume of reform and pilot experiences. After being approved by the State Council, these experiences will be further promoted across the country. Thank you.
Xing Huina:
Due to time constraints, we will have one last question.
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International Business Daily:
Thank you. China has over 800 million people living in its counties, and this has created huge potential for consumption. In 2021, the MOFCOM worked with relevant government bodies to launch a campaign to build commercial facilities in counties. A layered approach has been taken in light of local conditions. What's the progress so far? What are the key tasks for 2022? Thank you.
Wang Wentao:
I'd like to take your questions.
Frankly speaking, commercial networks at the county level and below are the weak links of China's overall logistics system. Therefore, in 2021, the CPC Central Committee and the State Council made arrangements accordingly, and the MOFCOM and another 16 government bodies launched a campaign to build commercial facilities in counties. The campaign seeks to strengthen weak lines, ensure smooth logistics, improve commercial networks, and diversify business forms. The progress made in 2021 can be summarized in the following aspects:
First, a group of commercial sites was built or renovated. In 2021, we built or renovated 834 county-level comprehensive commercial service centers, 1,858 township-level commercial centers, and 369,000 village-level convenience shops.
Second, a group of logistics delivery facilities was improved. We enhanced the capacity of supply and marketing logistics, postal logistics, logistics enterprises, and e-commerce logistics. We have integrated and optimized the logistics resources, and improved a three-layered logistics system covering counties, townships, and villages. A total 1,212 county-level logistics centers and 14,800 village-level e-commerce parcel stations were renovated in 2021. Currently, 98% of townships and villages in China have direct access to big-brand logistics companies, and parcels can be directly delivered to more than 80% of administrative villages. Products purchased online can be delivered more efficiently to villagers. But there are still problems. Some villages are beyond the reach of the logistics networks. Due to China's vast territory and huge geographical differences and regional imbalances, some villages are hard to reach, and the costs of logistics are comparatively high in some mountainous regions.
Third, logistics channels of agricultural products were optimized and expanded. A total of 1,028 farmers' markets and wholesale markets for agricultural products were renovated. The number of agricultural products traded in wholesale markets increased 8.4% year on year, hitting one billion metric tons. Nevertheless, we need to improve the cold chain logistics for agricultural products, which is currently one of the weakest links in this aspect.
Fourth, the driving role of e-commerce entrepreneurship in boosting employment was further enhanced. Based on a demonstration project that brings e-commerce into villages, we continue to expand the coverage of e-commerce business in villages. In 2021, the online retail sales volume in villages amounted to 2.05 trillion yuan, exceeding the two-trillion mark, up 11.3%. The number of e-commerce entities in villages across China reached 16.33 million by the end of 2021.
Nevertheless, there are still weak links. The magnetic effect of agriculture and commerce is yet to strengthen, and market entities remain small-scaled, randomly scattered, and less-developed. These phenomena haven't changed fundamentally. According to feedback, mainly from rural residents, the high cost of logistics is still a prominent problem.
In addition, the commercial development across China is also varied. Take our campaign of building commercial facilities in counties, for example. For regions with sound development basis, the gap between commercial facilities in counties and mid-sized and big cities is narrowing down, and the integration between them is deepening. We have also seen progress in applying digital technologies in commercial facilities and creating new business forms in counties, but there is still room for improvement compared with the situation in developed cities. However, for underdeveloped regions with poor development basis, their weaknesses and problems are more prominent, and commercial facilities there cannot meet the local needs of daily life and production. We have been continuously making improvements by adopting a problem-oriented approach, strengthening coordination at the county level, and enhancing the leading role of the market. We have been implementing various tasks and continuously strengthening support for commercial facilities, logistics, the circulation of agricultural products, and cold chains. We have been working to promote the sales of agricultural products in cities and bring supply chain, logistics, and commodity services in counties and villages so as to further consolidate our efforts in the campaign of building commercial facilities in counties. Thank you.
Xing Huina:
Today's press conference is hereby concluded. Thank you to all the speakers and friends from the media. Goodbye.
Translated and edited by Cui Can, Wang Yanfang, Duan Yaying, Li Huiru, Zhang Rui, Liu Sitong, Zhang Tingting, Liu Qiang, Wang Yiming, Ma Yujia, Zhu Bochen, Chen Xia, Yang Xi, Wang Qian, Zhang Liying, Yuan Fang, Dong Qingpei, Jay Birbeck, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
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