Read in Chinese
Speakers:
Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC)
Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC
Chairperson:
Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Jan. 12, 2024
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data. We are very pleased to be joined by Mr. Wang Lingjun, vice minister of the General Administration of Customs of China (GACC) and Mr. Lyu Daliang, spokesperson of the GACC and director general of the Department of Statistics and Analysis of the GACC, who will brief you on China's imports and exports in 2023 and answer your questions.
First, I will give the floor to Mr. Wang Lingjun for his introduction.
Wang Lingjun:
Friends from the media, ladies and gentlemen, good morning. Welcome to this press conference. Let me first inform you about China's imports and exports in 2023, and then my colleague and I will answer your questions.
The year 2023 marked the first year of the full implementation of the guiding principles of the 20th National Congress of the Communist Party of China (CPC). It also witnessed China's economic recovery and growth after achieving a smooth transition in the three-year COVID-19 response efforts. Guided by the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China has navigated external pressures, surmounted internal challenges, deepened reforms in a comprehensive way, and intensified macro-control efforts. The economy has sustained a robust rebound, with solid progress made in high-quality development. The import and export of goods has exceeded expectations, achieving the objectives of promoting stability and enhancing quality. According to customs statistics, China's total imports and exports reached 41.76 trillion yuan ($5.88 trillion) in 2023, up 0.2% year on year. Specifically, exports grew 0.6% year on year to 23.77 trillion yuan, while imports edged down 0.3% to 17.99 trillion yuan. A detailed analysis reveals six key characteristics:
First, foreign trade operations maintained overall stable, with a notable improvement trend in the fourth quarter. The scale of import and export has grown consistently each quarter, surpassing 10 trillion yuan in the second, third and fourth quarters after reaching 9.69 trillion yuan in the first quarter. The fourth quarter demonstrated increasing strength month by month, achieving year-on-year growth rates of 0.8%, 1.3% and 2.8% in October, November and December, respectively. The country's foreign trade reached a record monthly high of 3.81 trillion yuan in December.
Second, business entities exhibited ample vitality, and the leading role of private enterprises was strengthened. In 2023, the number of foreign trade entities with import and export records exceeded 600,000 for the first time. Among them, 556,000 were private enterprises, collectively contributing 22.36 trillion yuan to total imports and exports, marking a 6.3% increase. This accounted for 53.5% of the total import and export value, reflecting an increase of 3.1 percentage points. During the same period, foreign-invested enterprises registered 12.61 trillion yuan in imports and exports, accounting for 30.2% of the country's total foreign trade; the imports and exports of State-owned enterprises reached 6.68 trillion yuan, making up 16% of the country's total.
Third, trading partners diversified and witnessed common progress, with Belt and Road Initiative (BRI) partner countries taking up a growing share. In 2023, China's trade with countries participating in the BRI climbed 2.8% year on year to 19.47 trillion yuan, accounting for 46.6% of China's total foreign trade, representing an increase of 1.2 percentage points from last year. Imports and exports with Latin America and Africa reached 3.44 trillion yuan and 1.98 trillion yuan, up 6.8% and 7.1%, respectively. With a rebound in the fourth quarter, the country's trade with the EU and with the U.S. reached 5.51 trillion yuan and 4.67 trillion yuan in 2023, accounting for 13.2% and 11.2% of China's foreign trade, respectively.
Fourth, our products demonstrated solid competitiveness, with a vibrant and active export momentum. In 2023, China's exports of mechanical and electrical products reached 13.92 trillion yuan, marking a 2.9% increase and constituting 58.6% of the total export value. Notably, the export of labor-intensive products reached 4.11 trillion yuan, representing 17.3% of the total export value. In electromechanical products, the combined exports of new energy vehicles (NEVs), lithium-ion batteries and solar batteries — commonly known as the "new three" — surpassed 1.06 trillion yuan. This milestone marks the first time their export value has exceeded the trillion-yuan threshold, showcasing a significant growth of 29.9%. Ship and household appliance exports also increased 35.4% and 9.9%, respectively. This export momentum reflected a shift from "Made in China" to "Created in China."
Fifth, domestic demand continued its recovery, with orderly expansions in the imports of bulk commodities and essential goods. In 2023, imports of energy, metal ores and grain increased 15.3%. Among them, the imports of energy products such as crude oil, natural gas and coal grew 27.2% to 1.158 billion metric tons; metal ores like iron and aluminum increased 7.6% to 1.458 billion metric tons. Agricultural product imports amounted to 1.64 trillion yuan, reflecting a 5% increase. Additionally, imports of consumer goods such as textiles, clothing, shoes and hats increased 5.6%, and imports of jewelry and watches climbed 63% and 17.2%, respectively.
Sixth, China made steady progress in high-level opening up, and new platforms and business models developed vigorously. In 2023, the number of China's free trade pilot zones expanded to 22, with a total import and export volume of 7.67 trillion yuan, up 2.7% year on year and accounting for 18.4% of the total imports and exports value. The construction of the Hainan Free Trade Port progressed further, marking its third consecutive year of double-digit growth in annual imports and exports. According to preliminary estimates, China's cross-border e-commerce logged total imports and exports of 2.38 trillion yuan in 2023, up 15.6% year on year.
In general, China's foreign trade in the past year weathered storms and achieved hard-won results of steady growth in scale and improved quality in development. When I first saw the latest released data, I was filled with emotion: pride in China's economic resilience, respect for those involved in the country's foreign trade, and confidence in China's future development.
Looking ahead to 2024, we need to overcome some difficulties and make more efforts to promote the stable growth of foreign trade in an increasingly complex, severe, and uncertain external environment. Meanwhile, we should recognize that the trend of economic recovery and long-term growth has not changed, and factors supporting high-quality development are accumulating. As policies gradually begin to take effect and high-level opening up advances, China will foster new drivers of trade growth, further strengthen foreign trade and investment, and consolidate the foundations for steady growth, improved quality, and increased benefits from imports and exports.
Customs bears the duty of safeguarding borders and promoting development. We will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, adhere to the important instructions of General Secretary Xi Jinping, and follow the guiding principles in his reply letter to all customs staff at the Khunjerab Pass. We will act on the decisions of the Central Economic Working Conference to optimize the port business environment, facilitate cross-border trade, and accelerate the development of intelligent customs and carry out the "Smart Customs, Strong Nation" initiative. With these efforts, we will strive to advance the modernization of socialist customs with Chinese characteristics, and contribute to the consolidation and reinforcement of the momentum of economic recovery. Thank you.
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Shou Xiaoli:
Thanks, Mr. Wang, for your introduction. Now, we will open the floor for questions. Please state the name of your media organization before asking questions.
CCTV:
China's foreign trade achieved positive growth in 2023, surpassing expectations. What are the main reasons behind this? How did foreign trade contribute to the overall economy? Also, how do you evaluate China's foreign trade performance in the global context? What are your projections for China's foreign trade in 2024? Thank you.
Wang Lingjun:
Thank you. This is also the topic I would like to share with you.
In 2023, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's economy overcame challenges and progressed steadily. Production and supply improved, market demand continued to rise, and the economy maintained a positive trend of recovery. As for foreign trade, imports and exports kept growing, providing a solid support for the economy. China is expected to remain the world's largest trader of goods for the seventh consecutive year. The following are some of the factors behind the stable growth of foreign trade:
First, policies to stabilize foreign trade continued to deliver in 2023. Local governments and departments across China carried out the work arrangements of the CPC Central Committee and the State Council on stabilizing and improving the quality of foreign trade. They took some solid measures to stabilize the scale and optimize the structure of foreign trade, expand the private economy, and accelerate the integrated development of domestic and foreign trade. Customs also introduced a number of targeted and specific support measures to optimize the business environment, advance the integrated development of the Beijing-Tianjin-Hebei region, and promote the sustained and high-quality development of processing trade. Various policies were implemented effectively, delivering benefits, stabilizing foreign trade, and stimulating new drivers.
Second, China boasts a vast market and competitive advantages in production capacity. Our country has the largest middle income group and the most promising market in the world. In 2023, China imported over 5 trillion yuan in bulk commodities, nearly 3 trillion yuan in electronic components, and almost 2 trillion yuan in consumer goods, providing a broad market space and cooperation opportunities for companies across the world. China's manufacturing industry ranks first in the world in terms of size. In 2023, China exported 23.51 trillion yuan in products from the manufacturing sector. As I mentioned before, China's total exports amounted to 23.77 trillion yuan, and products from the manufacturing sector reached 23.51 trillion yuan. From portable chargers to NEVs, China is able to meet the needs of different markets. The "China-Chic" boom has also helped more products go global, winning hearts of many consumers around the world.
Third, we should give appreciation to the genuine efforts made by entities engaged in foreign trade. In 2023, the number of foreign trade entities with export and import records reached 645,000, hitting a new record high. In response to the changes in international demands, foreign trade entities have risen to the challenge, forged ahead, actively expanded the market, attracted orders, and constantly opened up new space for development.
Regarding prospects of this year's foreign trade, I made a brief introduction just now. Hereby, I would like to elaborate more.
It's obvious that external demand remains subdued. Many international institutions have predicted that this year the global economic and trade growth will be below pre-pandemic levels. The rise of protectionism, escalating geopolitical conflicts, and many other uncertainties, such as the recent block of shipping lanes in the Red Sea, will hinder the development of trade.
However, we have to note that the Chinese economy has enormous resilience, great potential, and strong vitality. With strength in mobilizing resources for large tasks, China has a super-large market and strong production capacity that have been accumulated for a long time, as well as a number of pioneering and enterprising foreign trade entities. Therefore, China's comprehensive competitive advantages in foreign trade remain prominent, with new drivers of foreign trade gathering at a faster speed. Generally speaking, the favorable conditions for the development of foreign trade outweigh the unfavorable factors. According to a recent survey, more than three-quarters of China's key import and export enterprises expected their imports and exports to remain stable or achieve growth this year. We have the confidence, the conditions, and the ability to promote the development of foreign trade this year. Thank you.
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Shanghai Securities News:
We noticed that the growth rate of China's foreign trade slowed down significantly in 2023. I would like to ask, what's your opinion on China's export last year? How do you see China's export this year? What are your expectations in this regard? Thank you.
Wang Lingjun:
The achievements in exports last year were hard-won. It's fair to say that China's export fared well last year. Mr. Lyu will answer this question.
Lyu Daliang:
Thank you for your questions. Mr. Wang has introduced the general situation of China's foreign trade. I will elaborate on the country's exports performance.
Over the past year, the world economic recovery remained feeble, the overall performance of global trade stayed sluggish, and the weakness of external demand had a direct impact on China's exports. Judging from figures, the growth rate of China's exports is lower than that of previous years. However, we should also notice that China's exports have reached a new high on a high base, not only achieving a reasonable growth in volume, but also maintaining overall stability. It also achieved a qualitative and effective improvement in terms of growth momentum and regional dynamics, demonstrating strong resilience and comprehensive competitiveness. Specifically, it can be characterized by the following four aspects.
First, China's share of global exports remains stable at a high level, and the competitive advantage of China's manufacturing stay solid. According to the latest statistics released by the World Trade Organization, the international market share of China's exports is expected to remain at a high level of about 14% in 2023. Market share is a key indicator of market competitiveness. China's share stayed stable in 2023. Figuratively speaking, the "cake" did not get smaller, and our overall competitiveness remains solid.
Second, the export of independent brands has significantly increased, and the global influence of Chinese brands has expanded. In 2023, the export of products from our country's independent brands grew by 9.3%, with their share in the total export value increasing by 1.7 percentage points. In terms of the market, Chinese brand products have been exported to more than 200 countries and regions worldwide. Chinese brands are now present in every corner of the world.
Third, significant progress has been made in building a modernized industrial system, and the proportion of exports from the equipment manufacturing industry has increased. In 2023, the export value of the equipment manufacturing industry, reflecting industrial support and integration capabilities, reached 13.47 trillion yuan, up 2.8%. Its share in China's total exports increased to 56.6%. Notably, our country's automotive and shipbuilding industries have shown strong momentum, with record-breaking automobile production and sales volumes. China holds a leading position worldwide in terms of the quantity of completed ships, quantity of newly accepted orders and quantity of already placed orders . The export of products related to this sector has increased by 66%, contributing to a 1.5 percentage points rise in the overall growth of China's exports.
Fourth, coordinated regional development is advancing in an orderly manner, and a new pattern of regional openness is forming quickly. In 2023, the eastern region accounted for nearly 80% of China's total exports, with a growth rate 0.6 percentage point higher than the overall rate, making significant contributions to stabilizing the export market. China's northeast, the fastest-growing region, experienced export growth of 6.5%. The comprehensive revitalization of the northeast has yielded new results in foreign trade. Meanwhile, the central and western regions continued to play a positive role in undertaking the phased trans-regional relocation of processing trade and in promoting the sustained and healthy development of processing trade.
Regarding the export situation for this year, Mr. Wang provided some information earlier. Overall, the continued sluggishness of external demand remains the main factor constraining China's export growth. At the same time, factors such as protectionism and unilateralism also impact our exports, and we will face various difficulties. However, viewed from a different angle, thanks to policy support, industrial strengths, and the collective efforts of various stakeholders, China's exports are poised to further solidify their comprehensive competitive advantage. We are confident about our exports.
Thank you.
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Market News International (MNI):
What is the main reason for the significant increase in China's automobile exports in 2023, and will this high growth momentum continue for this year? Thank you.
Lyu Daliang:
Thank you for your questions. In recent years, with the continuous advancement in building our country's modernized industrial system, the automotive industry in China has consistently pursued technological innovation and established complete industry and supply chains. Automobile production and sales in China have continually reached new highs, and correspondingly, the export scale has expanded. In 2021 and 2022, China's automobile exports surpassed 2 million and 3 million vehicles, respectively. In 2023, exports exceeded 5 million, reaching 5.221 million, representing a year-on-year increase of 57.4%.
It is worth noting that China is vigorously promoting the green and low-carbon transformation and upgrade of its automotive industry, with the export of NEVs adding a distinct bright spot to the sector. Currently, for every three cars exported from China, one is an electric passenger vehicle. With a total annual export of 1.773 million units, representing a 67.1% increase, this significantly contributes to the global green and low-carbon transformation.
Looking ahead, we believe that China's automotive industry still possesses strong overall competitive advantages and can continue to provide more and better innovative products to meet the needs of global consumers. Thank you.
Hong Kong Bauhinia Magazine:
In 2023, what supportive measures did the GACC introduce to stabilize foreign trade, and what achievements were made? This year, what new measures will the GACC implement to stabilize the fundamentals of foreign trade in line with the guiding principles of the Central Economic Work Conference? Thank you.
Wang Lingjun:
Thank you for your questions. Last year, customs implemented various national policies and measures to stabilize foreign trade, focusing on promoting stability, enhancing quality and addressing enterprises' concerns. Within the customs' realm of responsibility, we introduced supportive measures including 16 ones to improve the business environment. Customs offices nationwide, in line with local conditions, refined nearly 1,000 specific measures, including national measures issued by the GACC that apply to all customs offices in China, regional measures tailored for specific economic regions, local measures released by individual customs offices that address issues within their jurisdiction, measures addressing different types of trade, measures addressing different regulatory zones, and measures addressing specific export products. This comprehensive, multi-layered approach spanned various perspectives and timeframes, creating a three-dimensional policy support framework. Based on our on-site research and feedback, improvements in the business environment, reductions in clearance times and the optimization of regulatory methods have been well-received by business entities.
First, expedited customs clearance for increased convenience has been implemented. Convenient measures for departure confirmation cover the Yangtze River Basin, saving one to two days in transit time. For imported iron ore, a streamlined supervision approach and seamless customs clearance have been adopted, allowing enterprises to achieve "inspection completion upon unloading," reducing clearance time by 65%. The green lanes for fresh and perishable goods have significantly reduced inspection time for agricultural and food products to less than three hours. The "cloud issuance" mode for export inspection and quarantine certificates has reduced the time for application from one to two days to as fast as 10 minutes. The controlled inspection mode for high-tech goods, such as vacuum packaging, can shorten clearance time by approximately 80%. The significance of these time reductions, whether a day or an hour, can be quantified as tangible benefits for enterprises, emphasizing the value of convenience in every day, hour and minute.
Second, we have aided enterprises in overcoming difficulties to boost vitality. Stimulating the enthusiasm and creativity of businesses is a fundamental aspect of stabilizing foreign trade. In 2023, we released numerous targeted measures to assist enterprises in reducing burdens and increasing efficiency, thereby further igniting business vitality. For instance, we expanded the scope of the voluntary disclosure policy, resulting in nearly 200 million yuan in legally waived late tax payment fines for businesses throughout the year. We also introduced an objective quantification and allocation plan for inland waterway shipping fees, saving businesses nearly 100 million yuan in costs annually. The pilot exemption of submission of declaration forms and invoice information has improved the efficiency of tax refund process for enterprises. We intensified efforts in helping specialized and new enterprises maintain good credit records, helping them to overcome trade barriers and strengthen order management and market expansion.
Third, we have optimized services to enhance momentum. Vigorously nurturing new foreign trade dynamics and creating new drivers of growth for foreign trade are crucial aspects of customs' policies to stabilize foreign trade. Last year, we continued to optimize the business environment at ports, carried out policy interpretations by customs heads, and introduced 23 measures to promote the comprehensive reform for high-quality development of integrated bonded areas . We improved measures for return of goods in cross-border e-commerce, supported various modes of LCL (less than container load)exports in cross-border e-commerce and general trade, and actively supported the healthy and regulated development of market procurement and trading between border residents .
This year, customs will resolutely implement the spirit of the Central Economic Work Conference, continue to ensure the implementation and effectiveness assessment of existing policy measures, and focus on addressing difficulties, challenges and bottlenecks for enterprises. We will explore, prepare and timely introduce more targeted and effective new measures to accelerate the cultivation of new driving forces for foreign trade growth, stabilize the fundamentals of foreign trade and foreign investment, and contribute to consolidating and enhancing the positive economic recovery trend.
Thank you.
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Beijing Youth Daily:
Regarding private enterprises, as was just mentioned in the overall situation overview, the pivotal role of private enterprises has strengthened, and their proportion in foreign trade has also increased. Could you please provide specific details on the positive changes in the import and export activities of private enterprises last year? Additionally, what has customs done to support the development of private enterprises? Thank you.
Wang Lingjun:
Thank you for your questions. Last year, the overall development of the private economy showed a stable and positive trend. In the field of foreign trade, private enterprises demonstrated remarkable performance in four aspects.
First, private enterprises have been China's largest foreign trade entities for five consecutive years. In 2023, imports and exports of private enterprises accounted for 53.5% of the country's total foreign trade value, contributing 3.2 percentage points to China's foreign trade growth. The number of private enterprises accounted for 86.2% of the total, hitting another record high. Their status as entities for stabilizing foreign trade has been further consolidated.
Second, private enterprises have contributed 66.4% of domestic-owned brand product exports. Private enterprises have continuously promoted brand building, achieving tangible results in brand creation, brand management, and brand benefits to improve the popularity and reputation of the "Made in China" brand.
Third, private enterprises have contributed 68.1% of China's imports and exports of consumer products. The overall technological strength of private enterprises has continued to improve, and their share of high-tech consumer product exports has continued to grow year by year. They have played a leading role in imports of meat, edible aquatic products, vegetables, and fruits, and their role in serving people's livelihoods has become increasingly prominent.
Fourth, private enterprises' imports and exports to economies involved in the Belt and Road Initiative increased by 9.2%, and imports and exports to traditional markets, such as the EU and the United States, increased by 2.3% and 2%, respectively. While continuing to explore emerging markets, private companies have remained resilient to traditional markets.
Next, the GACC will attentively implement policies and measures of the CPC Central Committee and the State Council aimed at promoting the growth of the private sector and work unswervingly both to consolidate and develop the public sector as well as encourage, support, and guide development of the non-public sector. Focusing on market access, access to factors of production, fair law enforcement, and protection of rights and interests, we will pay visits to enterprises to enact policies , hear opinions, and solve problems to provide a good environment for private business, further stimulate their vitality, and strengthen the resilience of the private sector. Thank you.
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Bloomberg News:
I have a question about the Red Sea. You mentioned earlier that the issues in the Red Sea will affect China's exports and imports this year. Can you give us more details about your expectations for how the conflict in the Red Sea and the Suez Canal will affect Chinese trade, and what China will do to try to ameliorate the effects of this? Also, this morning the U.S. and UK started to attack the Houthis in Yemen. Do you think this is going to have a positive effect or will it make the situation even worse? Thank you.
Wang Lingjun:
These are also problems we have been following up with and are concerned about. I invite Mr. Lyu to answer your questions.
Lyu Daliang:
Thank you for your questions. As we all know, the Red Sea waters are important international freight lanes. The security and stability of the waters have great importance for global trade in goods and supply chains and are also critical to the interests of many enterprises around the world. Our customs is an important link between import and export chains, and we have been following up with the issue. At present, the regular sea passage has been affected to some extent, increasing unstable and uncertain elements on sea routes, global trade, and interests of enterprises. We are currently keeping an eye on it. If there are any relevant important updates, we will share them in due time. Thank you.
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The Paper.cn:
Jan. 1, 2024 marks the second anniversary of the launch of the Regional Comprehensive Economic Partnership (RCEP) agreement. Can you outline the trade that took place between China and RCEP members in 2023 and what key measures customs took to promote the RCEP work last year? Thank you.
Wang Lingjun:
It is meaningful to review the results of RCEP on the occasion of its second anniversary. I invite Mr. Lyu to answer your questions.
Lyu Daliang:
It has been two years since RCEP took effect. Over the past two years, costs of regional trade have been significantly reduced, industrial and supply chains are more closely linked, and trade links between RCEP members have become closer. According to statistics, trade between China and the 14 other RCEP member countries amounted to 12.6 trillion yuan ($1.77 trillion) in 2023, an increase of 5.3% compared to the period before the agreement came into effect in 2021. RCEP has continued to bring tangible dividends and benefits for member countries and enterprises.
First, cooperation in industrial and supply chains has deepened. In 2023, China's exports to fellow RCEP member countries reached 6.41 trillion yuan, constituting 27% of its total exports. This marked a 1.1 percentage points increase from 2021. Notably, exports of equipment manufacturing expanded by 32.8%, contributing a 6.5 percentage points increase in its share of China's exports to other RCEP countries. Exports in lithium batteries, automotive components, and flat-panel display modules saw significant growth. In the same year, China's imports from other RCEP countries stood at 6.19 trillion yuan, accounting for 34.4% of the nation's total imports. Specifically, the import volume of energy products rose by 31.2% from 2021, comprising 32.4% of China's total energy product imports, a 2.5 percentage points increase.
Second, preferential tariffs have brought continuous benefits to related enterprises. RCEP , in conjunction with existing bilateral free trade agreements between China and other RCEP countries, allows companies to enjoy more favorable tariff terms. In 2023, relevant companies saved 2.36 billion yuan in taxes on 90.52 billion yuan of imports under RCEP, primarily in plastics and plastic products, machinery and parts, and organic chemicals, among others. They also saved 4.05 billion yuan in tax concessions on 270.07 billion yuan of preferential exports within RCEP, mainly including inorganic chemicals, clothing and clothing accessories, and plastics and plastic products, among others. Nationwide, 723 approved exporters independently issued 12,000 RCEP declarations of origin, amounting to a value of 10.18 billion yuan.
Over the past two years, the customs authority has steadfastly implemented the plans of the CPC Central Committee and the State Council regarding RCEP execution, maintaining high standards in customs procedures and trade facilitation. Additionally, it has bolstered international cooperation on animal and plant quarantine, as well as food safety, and ensured that the preferential rules of origin are effectively applied. Simultaneously, the customs authority has been attentive to the specific demands of enterprises, continuously improving the quality of public services provided within the RCEP framework.
Moving forward, we will strengthen international collaboration with customs authorities of other RCEP member countries. We will stay informed about the latest developments of the members and closely monitor the implementation of measures concerning trade facilitation and tariff preferences. Additionally, we plan to organize RCEP-related training to improve the overall execution standards of the RCEP agreement. This initiative aims to create new opportunities for the development of enterprises within the agreement and inject new energy into regional economic cooperation.
Thank you.
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21st Century Business Herald:
Since last year, domestic demand has driven a steady recovery in consumption, yet imports have seen a slight decline. How should we interpret this situation? What are the expectations for imports this year? Furthermore, given the current volatility in international commodity prices, are there expected implications for China's future imports? Thank you.
Lyu Daliang:
Thank you for your questions. Now, let me provide a more detailed introduction regarding the import situation.
Import value is influenced by both import quantity and price. In 2023, China's import value experienced a slight decrease, with the import price dropping by 3.1% while the import quantity grew by 2.9%. In other words, the decrease in import value was due to the downward trend in goods prices. However, the rise in import quantity indicates a continued recovery in production and robust consumer demand in the country. Imports are essential in both domestic work and life, offering more opportunities for foreign companies to participate in the Chinese market.
Raw materials and key parts imports have increased to better satisfy domestic needs for steadily expanding production. In 2023, China's import quantities of crude oil, natural gas, and coal increased by 11%, 9.9%, and 61.8%, respectively. Imports of iron, copper, and aluminum ore rose by 6.6%, 9.1%, and 12.9%, respectively. Additionally, the import value of central processing components for computers, aircraft components, and audio-video equipment parts grew by 61.6%, 40.8%, and 11.5%, respectively. These imports have played a significant role in ensuring the safety and stability of the industrial and supply chains of the relevant domestic industries.
As for the import of consumer goods, this has enriched consumers' purchasing options. In 2023, China imported consumer goods such as specialty foods, maternity and baby products, and digital home appliances, with a total volume of 1.95 trillion yuan, an increase of 1.2%. In addition, China accelerated the fostering of import trade innovation demonstration zones and developed new formats and models such as cross-border e-commerce. According to preliminary statistics, China's cross-border e-commerce imports totaled 548.3 billion yuan in 2023, up by 3.9%. Convenient and flexible online shopping offers consumers broader and swifter access to imported goods.
China continues to expand its imports, and China's development is increasingly becoming an opportunity for the world to share. In 2023, China successfully hosted major exhibitions such as the China International Import Expo, the China International Consumer Products Expo, and the China Import and Export Fair, providing new opportunities for global businesses to enter the Chinese market. At the same time, China has continued to promote the entry of high-quality agricultural products and food. In 2023, imports of fresh durian and edible bird's nests from Vietnam, fresh pears from South Africa, dragon fruit from Ecuador, and avocados from Kenya showed a rapid growth momentum. This enables Chinese consumers to enjoy a greater variety of high-quality products from around the world, and China's large market is increasingly becoming a global market that is shared by all.
Regarding import trends for this year, China will try to expand domestic demand, stimulate potential consumption, and increase beneficial investments to create favorable conditions for further expanding imports. In addition, the advantage of China's huge market will continue to sustain import growth.
As for the impact of commodity prices on future imports, as I mentioned earlier, import volume is determined by both quantity and price. The current global supply and demand situation for commodities is complex, with many factors affecting both quantity and price trends. We will continue to monitor these factors closely. Thank you.
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The Poster News APP:
Last year marked the 10th anniversary of China's proposal of the Belt and Road Initiative. What are the characteristics of import and export trade between China and BRI partner countries? In addition, what new measures will China Customs take to promote the joint construction of the BRI? Thank you.
Wang Lingjun:
In October 2023, China successfully hosted the Third Belt and Road Forum for International Cooperation, during which President Xi Jinping announced eight major steps China would take to support high-quality Belt and Road cooperation. The joint construction of the BRI has entered a new phase of high-quality development. To mark the occasion, the GACC released the trade index between China and BRI partner countries. The index rose from 100 in 2013 to 165.4 in 2022, manifesting the achievements of trade between China and BRI partner countries over the past decade. In 2023, the trade between China and BRI partner countries continued to grow, maintaining a positive momentum. This is demonstrated in the three aspects as follows:
First, closer trade contacts. In 2023, China's trade with BRI partner countries reached 19.47 trillion yuan, growing by 2.8% year on year. This accounted for 46.6% of China's total foreign trade. Both the scale and proportion have reached the highest level since the launch of the BRI.
Second, smoother customs clearance. In 2023, China-Europe freight trains made 17,000 trips, transporting 1.9 million standard containers of cargo. This represents a year-on-year growth rate of 6% and 18%, respectively. The New Western Land-Sea Corridor transported 860,000 standard containers of cargo, increasing by 14%. Under the examination and release procedures by customs, the cargo transported through the China-Laos Railway reached 4.218 million tons, growing by 94.9%. The China-Laos Railway, a logistics "golden gateway" between China and Southeast Asia, is increasingly expanding its function. Fans of durian, for example, might have noticed that fruits from Southeast Asian countries became more abundant and fresh last year. This is attributed to the China-Laos Railway. After a direct fruit cold chain express train from Southeast Asia opened, fruit imports became smoother and more convenient. From Thailand to China's Kunming, the entire journey is conducted via a cold food chain, reducing the transportation period from five to seven days to just three days.
Third, mutual benefit and win-win cooperation have deepened further. Through trade cooperation, people's needs for a better life in various countries have been better met. China has imported fruits and dairy products from BRI partner countries and exported clothing and shoes. It has also actively supported the development of these countries' manufacturing and infrastructure sectors. In 2023, through foreign contracted projects, China's exports to BRI partner countries reached 86.1 billion yuan, marking an increase of nearly 30%.
Going forward, customs will adhere to the eight major steps announced by President Xi Jinping as the fundamental guideline. We will strengthen communication and coordination, advance cooperative mechanisms with corresponding departments of BRI partner countries, and implement the follow-up work of the signed cooperation documents on customs inspection and quarantine. We will deepen cooperation in areas such as port management, paperless plant quarantine certificates, and supply chain interconnectivity. This effort aims to facilitate trade security and smoothness with partner countries, and contribute to steady and sustained progress in high-quality BRI cooperation.
Thank you.
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Shenzhen Satellite TV:
Would you please provide an overview of China's imports and exports with ASEAN in 2023? What are your views on future trends? Thank you.
Lyu Daliang:
Thank you for your question. In 2013, President Xi Jinping proposed the establishment of a closer China-ASEAN community with a shared future. Through years of effort, economic integration between China and ASEAN has continued to deepen, and economic and trade cooperation has accelerated. In 2023, trade between China and ASEAN continued to grow. Let's take a closer look.
First, both sides are each other's largest trading partners. Since 2013, the average annual growth rate of trade between China and ASEAN has been 8.8%, which is 3.8 percentage points higher than China's overall average annual growth rate during the same period. In 2023, bilateral trade continued to grow, reaching 6.41 trillion yuan. ASEAN has maintained its position as China's largest trading partner for four consecutive years, and China has been ASEAN's largest trading partner for many years.
Second, the two sides' industrial and supply chains are further interconnected. China and ASEAN have leveraged their respective comparative advantages to deepen the integration and development of their industrial and supply chains. In 2023, China's imports and exports of intermediate goods with ASEAN reached 4.13 trillion yuan. ASEAN has remained China's largest trading partner for intermediate goods for many consecutive years. Cooperation between the two sides in industries such as green energy and consumer electronics continues to deepen. China's exports of lithium batteries and solar cells to ASEAN, as well as China's imports of audiovisual equipment components, have experienced rapid growth. At the same time, ASEAN is a major source of imports for China's agricultural and energy products. Almost all of China's palm oil imports come from Indonesia and Malaysia. Meanwhile, Indonesia and Myanmar are the largest sources of coal and tin ore imports for China, respectively.
Third, land border crossings for passengers and cargo are thriving. Following the shift in COVID-19 prevention and control strategies, the flow of passengers and cargo at land border ports has resumed in an orderly manner, leading to a significant increase in cross-border trade. The daily number of inbound and outbound personnel at Guangxi's Dongxing Port and Yunnan's Hekou Port exceeds 10,000 on average, restoring the bustling scenes of the past. In April 2023, the China-Laos Railway passenger service officially commenced, facilitating travel for people along the route. By the end of the year, customs had monitored and supervised 114,200 inbound and outbound personnel via the China-Laos Railway.
Looking to the future, as negotiations for the China-ASEAN Free Trade Area 3.0 accelerate, the scope of cooperation between the two sides will further expand, and bilateral trade will continue to maintain a positive development trend. In the next step, customs will implement various measures to facilitate customs clearance, steadily promote intelligent border port building along the China-Vietnam border, strongly support the high-quality development of the China-Laos Railway, actively support the construction of the New International Land-Sea Trade Corridor, and contribute to the greater development of China-ASEAN bilateral trade. Thank you.
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Shou Xiaoli:
Everyone is very interested in the import and export situation, and many reporters are still raising their hands. Let's continue with the questions.
The Beijing News:
Last year, General Secretary Xi Jinping made a series of arrangements for coordinated regional development, and customs launched targeted measures such as 12 measures to support the coordinated development of the Beijing-Tianjin-Hebei region. What achievements have been made in this respect? From the perspective of foreign trade, what are the highlights of relevant regions across the country? Thank you.
Lyv Daliang:
Thank you for your questions. The GACC has resolutely implemented the decisions and arrangements of the CPC Central Committee on regional coordinated development, and regarded supporting and promoting regional coordinated development as an important leverage to serve high-standard opening up and high-quality development. In 2023, we introduced 12 key measures to support the coordinated development of the Beijing-Tianjin-Hebei region, and subsequently issued 15 key initiatives to support the accelerated construction of the New International Land-Sea Trade Corridor in the western region, and 16 measures to better support the high-standard opening up and high-quality development of the Yangtze River Economic Belt. These measures have primarily focused on the development of industries with regional features, promoting collaborative innovation and industrial cooperation, and have effectively driven regional high-standard opening up.
In 2023, imports and exports of the Beijing-Tianjin-Hebei region reached 5.03 trillion yuan, of which imports accounted for 20% of the country's total import value, accounting for more than half of China's grain, crude oil, natural gas and aircraft imports. Enterprises from the region accounted for two-thirds of the country's total imported automobiles. These measures played a crucial role in expanding imports, ensuring domestic supply, and meeting production and living needs.
2023 marks the fifth anniversary of the integrated development of the Yangtze River Delta as a national strategy. The region's imports and exports reached 15.17 trillion yuan for the whole year, an increase of 37.3% compared to five years ago, and its proportion in the total value of imports and exports of the country increased to 36.3%. The Yangtze River Delta region has played a prominent role in leading opening up.
In 2023, the imports and exports of the nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area reached 7.95 trillion yuan, an increase of 0.4%, accounting for 19% of the total value of imports and exports in the country. The proportion of high-tech product imports and exports in the region was 13.6 percentage points higher than the national average, highlighting its outstanding advantages in scientific research and industrial innovation.
In 2023, Northeast China actively expanded its "Belt and Road" market, and became the region with the fastest growth rate of exports to partner countries. The Chengdu-Chongqing Economic Circle witnessed the agglomerative effects of the cellphone and automobile industries, with the export value of related products reaching historic highs. The scale of imports and exports in Xiongan New Area has grown rapidly, with an average annual growth rate of 35.8% since 2020.
There have been many highlights in the expansion of opening up in various regions. This year, the GACC will continue to implement various support measures in accordance with the decisions and arrangements of the Central Economic Work Conference on promoting regional coordinated development. At the same time, we will study and formulate a new round of customs policies and measures to support the all-round revitalization of Northeast China in the new era, further promote the integrated development of the Yangtze River Delta, ecological protection and high-quality development in the Yellow River Basin, and make greater efforts to promote coordinated regional development and better serve high-quality development and high-standard opening up. Thank you.
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Shou Xiaoli:
The last two questions.
International Business Daily:
New business forms such as cross-border e-commerce have become important forces in stabilizing foreign trade. What are the highlights of the development of cross-border e-commerce in 2023? What measures has the GACC taken to support the development of cross-border e-commerce?
Wang Lingjun:
Perhaps everyone present is involved in cross-border e-commerce. I'd like to invite Mr. Lyv to answer these questions.
Lyu Daliang:
Thank you for your questions. Cross-border e-commerce, closely related to consumers, has attracted widespread public attention. Currently, it has become an emerging powerhouse for global trade. With over 1 billion netizens, China is the largest online retail market, and its cross-border e-commerce is rapidly developing. According to initial estimates, in 2023, China's cross-border e-commerce imports and exports reached 2.38 trillion yuan, up 15.6% year on year. Exports totaled 1.83 trillion yuan, up 19.6% year on year, while imports stood at 548.3 billion yuan, up 3.9%. The number of consumers engaged in cross-border e-commerce imports has increased annually, reaching 163 million in 2023. The rapid development of cross-border e-commerce enables people to buy and sell anywhere, meeting domestic consumers' diverse and personal needs and contributing to the global reach of China's products, thus becoming an important growth driver for foreign trade.
In 2023, the GACC implemented specific measures in response to the trends and characteristics of cross-border e-commerce, advancing comprehensive reform in supervision, launching innovative trial reforms, and continuing to enhance the efficacy of supervision and service, thereby strongly supporting the sustainable and healthy development of cross-border e-commerce. First, in response to the demands of e-commerce enterprises, we introduced an online tax payment function and facilitated customs clearance, further helping enterprises reduce operational costs. Second, we piloted a program for the return of cross-border e-commerce retail import and export goods across customs zones and continued to improve return measures, effectively addressing enterprises' and consumers' concerns in this area. Returns, although undesirable, are sometimes unavoidable. Third, we have maintained a focus on food safety issues abroad, releasing early warning messages in a timely manner to ensure the safety of every bite of food consumed. Fourth, we have strengthened cooperation with cross-border e-commerce platform enterprises, enhanced the cultivation of enterprise credit, and guided enterprises to operate in compliance with rules and regulations, promoting the high-quality and healthy development of cross-border e-commerce.
The Central Economic Work Conference has proposed expanding cross-border e-commerce exports. In 2024, the GACC will resolutely implement the guiding principles of the CPC Central Committee. It will focus on the difficulties and problems hindering the development of cross-border e-commerce, continue to deepen reforms in this area, advance intelligent supervision over cross-border e-commerce, ensure the quality and safety of imported and exported products, facilitate customs clearance, and improve the efficacy of customs supervision as well as increase the sense of gains of relevant enterprises and consumers.
Thank you.
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National Business Daily:
The Central Economic Work Conference has also emphasized the need to boost trade in intermediate goods. How did China's trade in intermediate goods perform in 2023? Moving forward, what actions will the GACC take to contribute to boosting trade in intermediate goods? Thank you.
Wang Lingjun:
Thank you for your questions. Since the Central Economic Work Conference emphasized the importance of boosting trade in intermediate goods, more people have become familiar with this relatively specialized concept. The goods in international trade are diverse. According to U.N. standards, they can be classified into three categories: capital goods, intermediate goods, and consumer goods. Intermediate goods include raw materials, semi-finished products, and components.
With the development of globalization and the international division of labor, intermediate goods have become a crucial part of global trade. Serving as a connection point for upstream and downstream industries in industrial chains, they account for over 50% of global goods trade and play a vital role in promoting the development of global trade and ensuring stability in global industrial and supply chains. China has deeply integrated into globalization, and the proportion of its import and export of intermediate goods in the global total continues to increase. Last year, the import and export of intermediate goods reached 25.53 trillion yuan, accounting for 61.1% of the total foreign trade value, which remains at a historically high level. Let's analyze intermediate goods in terms of exports and imports.
In terms of exports, intermediate goods play a significant role in promoting the development of industries worldwide. With a well-developed industrial system and strong supply capacities, China exports a large number of intermediate goods, meeting the industrial development needs of different regions globally. In 2023, China's intermediate goods exports reached 11.24 trillion yuan, accounting for 47.3% of the total export value. This includes 6.37 trillion yuan in mechanical and electrical products, up 1.9% year on year. In terms of specific markets, China's exports of automotive parts to Japan and Mexico, lithium batteries to the U.S. and Germany, and display modules for tablets to Vietnam and Indonesia all saw double-digit growth. During the same period, China exported over 1 trillion yuan of textile and plastic products, contributing to the industrial growth of ASEAN and African countries.
In terms of imports, intermediate goods significantly support domestic production and supply and provide a market for global enterprises. Last year, China's import of intermediate goods reached 14.29 trillion yuan, accounting for 79.4% of the total import value. This includes 4.41 trillion yuan in mechanical and electrical products, 3.2 trillion yuan in energy products, and 1.67 trillion yuan in metal ore sands. These products have played a positive role in satisfying domestic production demands. Additionally, China sources its imports from over 200 countries and regions across six continents, and its substantial market demand offers vast cooperation opportunities for enterprises worldwide.
The Central Economic Work Conference has identified boosting trade in intermediate goods as a key task for expanding high-quality opening up. This demonstrates China's commitment as a major country to deepen international cooperation on industrial and supply chains through concrete actions. In line with the arrangements made by the Central Economic Work Conference, the GACC will support the import of key components and important raw materials, ensure the stable supply of food, energy resources, and quality agricultural products, and improve the mechanism for efficient and smooth customs clearance. These efforts aim to create a better business environment at border ports and offer more convenient cross-border trade services, thereby boosting trade in intermediate goods. Thank you.
Shou Xiaoli:
Thanks to both speakers and also to our friends from the media for participating. Today's briefing is hereby concluded. Goodbye, everyone.
Translated and edited by Wang Wei, Wang Yiming, Xu Xiaoxuan, Liu Jianing, Liu Qiang, Qin Qi, Liu Caiyi, Zhou Jing, Wang Ziteng, Liu Sitong, Yang Xi, Zhang Rui, Mi Xingang, Li Huiru, Xu Kailin, Yuan Fang, He Shan, Xiang Bin, Ma Yujia, Huang Shan, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
