.

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Speakers:

Mr. Wang Wentao, minister of commerce

Mr. Wang Shouwen, China international trade representative and vice minister of commerce

Ms. Guo Tingting, vice minister of commerce

Chairperson:

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

Date:

Jan. 26, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to have invited Mr. Wang Wentao, minister of commerce; Mr. Wang Shouwen, China international trade representative and vice minister of commerce; and Ms. Guo Tingting, vice minister of commerce, to brief you on seeking progress through stability and promoting stability with progress for new breakthroughs in high-quality commerce development, and to take your questions.

Now, I will give the floor to Mr. Wang Wentao for his introduction.

Wang Wentao:

Ladies and gentlemen, good afternoon. I am very happy to be attending this SCIO press conference to brief you on the business operations in 2023 and the work plans for implementing the deployments of the Central Economic Work Conference in 2024. First of all, on behalf of the Ministry of Commerce (MOFCOM), I would like to express my heartfelt thanks to everyone for your long-term concern and support for commercial work.

In the past year of 2023, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, united as one, and overcame difficulties to promote overall stable business operations throughout the year and take a step forward in high-quality development. I think this progress can be summed up simply using three terms:

The first is "ensuring stability." Our business work is all related to China's three drivers of growth: consumption, investment and net exports. Specifically, total retail sales of consumer goods reached unprecedented levels, with final consumer spending contributing 82.5% to economic growth in 2023. Building upon a robust starting point, we witnessed a positive upturn in foreign trade denominated in RMB. The share of our exports in the international market remained consistently stable at around 14%. Two-way investment also flourished, with the actual utilization of foreign capital marking the third-highest in history, and non-financial outbound direct investment increasing by 16.7% in RMB. On the whole, these areas maintained a stable foundation and made substantial contributions to the overall recovery of the national economy.

The second term is "improvement." This signifies the constant optimization of structures and the continuous enhancement of development quality and substance. For instance, in terms of consumption, online retail sales surged by 11%, maintaining a rapid growth rate, while service retail sales experienced a remarkable 20% increase, revealing substantial growth potential. In foreign trade, China's import and export proportion of intermediate goods reached 61.1%, marking a historical high. Notably, the import and export share of private enterprises increased by 3.1 percentage points, reaching 53.5%, firmly establishing their significant role. Foreign investment also witnessed an upswing in high-tech industries and manufacturing. The growth rate of foreign investment in manufacturing, wholesale and retail outpaced the average, while foreign investment collaboration in green, digital and blue industries continued to expand.

The third term is "empowerment." New development dynamics continued to emerge in various sectors. For instance, the share of online retail sales of physical goods in total retail sales reached a record high of 27.6%. Green, health and smart products as well as domestic "trendy products" have gained immense popularity, evolving into fresh patterns of consumer preferences. Notable achievements include a 50% increase in automobile exports and a 19.6% rise in cross-border e-commerce exports, both of which have emerged as new engines for foreign trade growth. The number of newly established foreign-funded enterprises surged by 39.7%, reflecting the enthusiasm of foreign investors to participate in opportunities within the Chinese market. There have also been new developments and breakthroughs, such as the successful completion of text negotiations for the World Trade Organization (WTO) Investment Facilitation for Development Agreement, which is the first major issue that China has taken the lead in at the WTO. We have signed or upgraded free trade agreements with four countries including Nicaragua. The release of China's inaugural plan on enhancing international economic and trade cooperation in digital and green fields received positive responses from more than 30 countries and international organizations.

This year marks the 75th anniversary of the founding of the People's Republic of China and holds paramount significance in achieving the goals and tasks outlined in the 14th Five-Year Plan (2021-2025). The MOFCOM will continue to adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. We will implement the directives of the Central Economic Work Conference and the Central Conference on Work Relating to Foreign Affairs. Upholding the "three important" positioning, we will propel consumption from post-pandemic recovery to sustained expansion, fortify the foundations of foreign trade and investment, expand high-level opening-up to the global community, and through tangible actions and outcomes in high-quality business development, contribute positively to economic recovery and the promotion of Chinese modernization.

Now, my colleagues and I are ready to answer your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Wang, for your introduction. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

ThePaper.cn:

In 2023, China's total foreign trade volume reached 41.76 trillion yuan, showcasing significant resilience. Global institutions generally anticipate increased uncertainties in the world's economic and trade development for 2024. What is your perspective on China's foreign trade situation in 2024? Additionally, could you elaborate on the policies and measures that the MOFCOM plans to implement to stabilize the development momentum of foreign trade? Thank you.

Wang Wentao:

Thank you for your questions. Since last year, under the strong leadership of the CPC Central Committee, we have concentrated on policy, entities, markets and other aspects. We have taken proactive and targeted measures to promote the overall stability of foreign trade operations. The scale of imports and exports reached 41.76 trillion yuan, achieving the goal of ensuring stability and enhancing quality. This accomplishment has been hard-earned and can be evaluated from three dimensions:

Looking from a longitudinal perspective, China's imports and exports achieved a positive growth of 0.2% compared to the high base of 2022, and an increase of over 30% compared to the pre-pandemic year of 2019. Especially, as mentioned earlier, our exports are expected to maintain a stable market share of around 14% in the international market.

Looking horizontally, the United Nations Conference on Trade and Development estimated that global trade in goods likely declined by 7.5% in 2023. In comparison, China's foreign trade performance was better than the global average and that of most major economies.

Upon closer examination, the structure of foreign trade has continuously been optimized, with two notable breakthroughs. First, China's exports of "new three" products — new energy vehicles, photovoltaic products, and lithium-ion batteries — surpassed 1 trillion yuan for the first time, with a growth of nearly 30%. This indicates a continuous improvement in the structure of our export commodities. Second, the number of business entities engaged in real import and export activities topped 600,000 for the first time, reaching 645,000. This demonstrates the continuous growth and optimization of foreign trade entities.

You just asked about the outlook for 2024, which is a question that everyone is concerned about. In general, this year, the development of China's foreign trade will face a more complex and challenging external situation. On the one hand, there is weak demand, and the global economy is still sluggish. The International Monetary Fund predicted that global economic growth will decrease to 2.9%. On the other hand, the environment is unfavorable, with rising trade protectionism and increasing geopolitical conflicts. There is a significant increase in spill-over risks. For example, the recent disruption in the Red Sea shipping channel has disrupted international trade. However, it is important to recognize that China's foreign trade development still has many favorable conditions. For example, the competitiveness of the foreign trade industry continues to improve, new business formats and models are flourishing, and digitalization and green development are accelerating. We have confidence and determination in implementing the arrangements made at the Central Economic Work Conference and consolidating the foundation of foreign trade and foreign investment. Specifically, our work will focus on four aspects:

First, we will promptly introduce new policies. The earlier these policies and measures are implemented, the greater their impact will be. Last April, we formulated policies aimed at stabilizing the scale and optimizing the structure of foreign trade, which have yielded positive results. We will continue to ensure their effective implementation. Additionally, in line with the new situation and tasks for this year, we will conduct policy research and add more tools to our toolbox. We recently conducted a survey to understand the suggestions and demands from localities and enterprises. Currently, we are actively conducting a new round of policy research and evaluations, with the aim of releasing new policies as soon as possible. These policies will be combined with existing ones to form a package so that they will have a synergistic effect to the largest extent.

Second, we will accelerate the cultivation of new growth drivers. Specifically, we will enhance the competitiveness of our industries. Leveraging our advantages, such as our complete industrial foundation and comprehensive manufacturing sector, we will expand trade in raw materials, semi-finished products, components, and other intermediate goods. We will seek vitality through innovation, promoting the development of new business formats and models in areas such as cross-border e-commerce, bonded maintenance, and market procurement. We will draw motivation from reforms, establishing an import and export catalog of green and low-carbon products, accelerating the digitalization of international trade documents, and driving green trade development and full-chain digital transformation.

Third, we will assist in exploring new markets. In the foreign trade industry, there is a saying: "A thousand emails are not as effective as one face-to-face meeting." Therefore, we will continue to organize important expos such as the Canton Fair and the China International Fair for Trade in Services. We will actively support companies in participating in overseas exhibitions and promote cross-border business personnel exchanges. We will create more opportunities for communication and exchanges between enterprises, helping them better connect with markets and customers and strive to secure more orders.

Fourth, we will unleash new potential for imports. We not only aim to expand exports but also to increase imports. The market is the most scarce resource, and China's super-large-scale market advantage provides vast market space and cooperation opportunities for enterprises from various countries. We will expand imports of high-quality consumer goods, advanced technologies, important equipment, and key components. We will also increase imports of energy and resource products as well as domestically scarce agricultural products. We will leverage platforms such as the China International Import Expo to enhance diversified import channels and improve the facilitation of import trade. We will also foster the development of national import trade promotion and innovation demonstration zones. The goal of these efforts is to transform China's super-large-scale market into a shared global market, injecting new momentum into the development of our national economy and the global economic recovery. Thank you.

Bloomberg:

My question is about foreign investment in China. Recently, the Chinese government introduced 24 measures aimed at expanding efforts to attract foreign investment. Not long ago, a representative from the Japanese Chamber of Commerce and Industry in China mentioned that while the Chinese government has made efforts to ensure personal income tax reductions and facilitate visa applications, there are still specific issues in other areas that have not been implemented. Additionally, there are no further detailed rules regarding the new regulations on cross-border data transmission. What measures will the MOFCOM take to address the concerns of businesses in these areas?

Wang Wentao:

Last year, the State Council issued the Opinions on Further Optimizing the Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment, commonly referred to as the "24 Measures to Attract Foreign Investment." After the release of these measures, the MOFCOM, together with relevant departments and local governments, further refined work tasks, implemented measures, and set timelines. We also conducted promotion and interpretation through press conferences, roundtable meetings with foreign-invested enterprises, and other events. Many journalists present here also contributed to the extensive promotion and introduction of these measures.

You just asked about the implementation of these measures. I would like to first provide an introduction to friends from the media. The guidelines to further optimize China's foreign investment environment and beef up foreign investment inflow contain 59 specific policies and measures. Over the past five months, we have worked hard with relevant departments to advance their implementation. Overall, over 60% of the policies and measures have been implemented or made positive progress. To be specific, among 59 policies and measures, we have completed 10 items, made phased progress in the implementation of 28 items, and continued to advance the implementation of 21 items. Just as you mentioned, policies such as tax exemption for foreign personal allowances and benefits and tax refunds for foreign-funded R&D institutions purchasing Chinese-made equipment have been extended until the end of 2027. For another example, the new version of the foreign permanent resident ID card has been officially put into use, and the guide for foreign businesspeople working and living in China has been released. These measures have facilitated travel, life, and consumption for foreign friends in China.

With regard to the regulations you mentioned to regulate and promote cross-border data flows, what I can tell you is that our competent authorities are driving forward the issuance of these regulations. Concerning 59 policies of the guidelines, local governments are also making supporting implementation arrangements and introducing some policies based on the characteristics of local foreign-funded enterprises.

I would also like to point out that foreign-funded enterprises have the best say on how these measures are implemented and whether they are effective. We are now making assessments by means of questionnaires and symposiums to get to know the real thoughts of foreign-funded enterprises. At present, over 90% of foreign-funded enterprises have given positive feedback. Of course, they also raise many opinions and expectations. We have attached great importance to them and will work on them in our follow-up work. The MOFCOM will continue to accelerate the implementation of these measures and release information about the work concerning government procurement, standard formulation, and investment facilitation, which are of general concern to foreign-funded enterprises, in a timely manner. Here, I would like to tell you that whatever difficulties and problems foreign-funded enterprises encounter, they can report them to the MOFCOM through at least three channels. The first one is the special work group on key foreign capital programs; the second one is the roundtable meeting of foreign-funded enterprises; and the third one is the online system for the collection and handling of problems and appeals of foreign-funded enterprises. We will actively promote the solution of these problems and the implementation of relevant policies and measures.

Thank you.

Nanfang Daily, Nanfang+:

In 2023, the Regional Comprehensive Economic Partnership (RCEP) entered into full effect. China signed free trade agreements with many countries and continued to enlarge its circle of friends via free trade. What progress has been made by China in the development of its free trade areas? What follow-up measures will be taken by the MOFCOM to advance the high-standard development of free trade areas? Thank you.

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping put forward that we should expand the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. The MOFCOM has resolutely implemented the decisions and plans of the CPC Central Committee and adopted a series of measures last year, achieving good results. 

First of all, just as Mr. Wang mentioned, in 2023, we made a new record in terms of the negotiation and signing of free trade agreements. We have recently signed four agreements, including free trade agreements with Ecuador, Nicaragua, and Serbia, and the protocol on further upgrading the free trade agreement with Singapore. We have also completed negotiations on the early harvest arrangements for the free trade agreement with Honduras. As of today, we have signed 22 free trade agreements with 29 countries and regions, accounting for about one-third of China's total foreign trade volume.

In terms of the content of the free trade agreement, new progress has been achieved concerning high standards. For example, China committed to a negative-list model of services and investment opening-up by signing an FTA with Nicaragua and reaching a protocol to further upgrade the FTA with Singapore, which marked a historic moment in China's FTA negotiation history. In addition, free trade agreement negotiations at present all include cooperation on standards, including digitization of trade documentation.

The RCEP you just mentioned is indeed worth highlighting in our introduction. RCEP has been in effect for two years, and it has brought tangible benefits to Chinese enterprises and our free-trade agreement partners. Last year, the trade volume of China with other 14 RCEP member countries reached 12.6 trillion yuan, up 5.3% from 2021 before the agreement came into force. China's exports to RCEP member countries increased by 16.6%, 4.6 percentage points higher than the growth rate of China's total exports over the same period. What is worth mentioning is that China's exports of NEVs, lithium-ion batteries, and photovoltaic products have a more impressive performance.

In terms of tariff reduction and exemption, under the framework of the RCEP agreement, tariff concessions on import products for Chinese enterprises amounted to 2.36 billion yuan last year. While enterprises of RCEP countries benefited from 4.05 billion yuan of tax breaks for products imported from China in 2023. Clearly, that's the result of mutual benefits. We have also helped local enterprises and industries to enjoy the benefits brought by these free trade agreements. 

At the same time, we have actively worked towards joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Digital Economy Partnership Agreement (DEPA). On Aug. 18, 2022, China set up a working group to advance talks on joining the DEPA . We have completed over 10 rounds of negotiations at the ministerial level, bureau level, and technical level. Mr. Wang has had full exchanges with ministers of DEPA member countries, and primary discussions of all items have now been completed.

This year, it can be said that we will have a richer agenda for our free trade agreement negotiations. We will strive to complete the negotiations on the China-ASEAN Free Trade Agreement 3.0, which will be held in Hangzhou next week. We will also complete the negotiation with Honduras, negotiations with Peru about the upgrading of our free trade agreement, and continue to work towards joining the CPTPP and DEPA.

In addition, we will launch negotiations on free trade or upgrading free trade agreements with the Gulf Cooperation Council, New Zealand, South Korea, and Switzerland to further implement the requirement of expanding the globally-oriented network of high-standard free trade areas in the report to the 20th CPC National Congress. 

In terms of high standards, we will also add some new content, including raising the proportion of zero-tariff treatment in trade in goods; promoting negative-list model of services and investment opening-up, including the opening up of telecommunications, health care, and other service industries; expanding market access for digital and other products; and incorporating high-standard economic and trade rules concerning digital economy, green economy, and standard certification, and government procurement into new free trade negotiations.

Thank you for your questions.

CCTV:

We have noticed that at the National Business Work Conference, the MOFCOM proposed focusing this year on the "Year of Consumption Boost" to promote the continued expansion of consumption. Could you provide a detailed introduction to the relevant situation? Thank you.

Wang Wentao:

I will answer this question. Thank you for your interest in business work, especially in consumption promotion. The issue you raised concerns the "Year of Consumption Boost" and the aim to continually expand consumption. I will offer a detailed introduction to our plans.

First, we will ensure the success of a series of activities themed "Year of Consumption Boost." Last year, we organized numerous activities centered on the recovery and expansion of consumption, achieving significant results. This year, adhering to the keyword "sustained expansion," as mentioned at the Central Economic Work Conference, we aim to enhance the rebound momentum of the consumer market. We have designated this year as the "Year of Consumption Boost" following last year's designation as the "Year of Consumption Promotion." Focusing on the keywords of "sustained expansion," we will collaborate with relevant departments and other parties to organize various consumption promotion activities. These initiatives will create a strong consumption atmosphere and provide residents with diverse and richer consumption experiences. For example, we plan to spotlight the festive season, combining traditional festivals, public holidays, and other peak consumption periods, and organize activities such as an online Spring Festival-themed shopping fair, a digital agricultural promotion fair, and an ice and snow consumption season. The online Spring Festival-themed shopping fair is currently underway, and we invite everyone to participate. Additionally, we will highlight local characteristics, guiding and supporting each region to leverage its unique advantages. This will involve combining local characteristics and folk customs to cultivate iconic event brands, such as the Beijing-Tianjin-Hebei Consumption Season , Shanghai's "May 5 Shopping Festival ", Zhejiang's "Zheli Lai Xiaofei" or "Shopping in Zhejiang" campaign, and the "Love Chongqing " consumption campaign, among others, to boost spending.

Second, we will promote the trade-in of cars, home appliances, etc. This is a key point in promoting consumption this year. According to statistics, China's automobile and home appliance markets have transitioned from a pure "era of increment" to an "era that emphasizes both increment and stock." In 2023, there were about 340 million cars in existence, and the number of major categories of home appliances, such as refrigerators, washing machines, and air conditioners, exceeded 3 billion. Some home appliances have been used for more than 10 or 20 years, and there is a great demand and potential for replacement. At the same time, we have also observed a systematic trajectory for the replacement of old consumer goods such as automobiles and home appliances, requiring coordinated integration and comprehensive policies across production, supply and marketing, upstream and downstream industries, government, enterprises, and consumers, as well as online and offline channels. We will strengthen support and guidance, take the improvement of technology, energy consumption, emissions, and other standards as the driving force, remove difficulties and bottlenecks in replacing old products with new products, and stabilize and expand traditional consumption to better meet the needs of replacing and upgrading consumer goods. All of this will be carried out based on respecting the wishes of consumers.

Third, we will promote the consumption of "China-chic" domestic products. Nowadays, high-quality products designed and made in China embody the national spirit and fine Chinese traditional culture, while "trendy products" represent the trend of fashion and quality consumption. We have observed that the crossover collision and integration of domestic products with trendy products have stimulated a new consumption focus in people's lives. The MOFCOM will continue to focus on the consumption of domestic trendy products and has carried out a series of related activities. For example, since 2006, we have been recognizing China's time-honored brands. Last year, we improved the dynamic rotation management mechanism by eliminating long-underperforming brands while also planning to incorporate new ones. In accordance with relevant regulations and standards, we plan to identify a new group of more than 300 Chinese time-honored brands. Many products from these brands are well-known domestic goods to us. In response to the fashionable, customized, and personalized needs of consumers, they have launched many trendy products that are deeply loved by consumers, especially modern young people. This year, we will also organize the "Time-honored Brands Carnival" and the "Time-honored Brands Digital Museum." Through these methods, we aim to promote the protection, inheritance, and innovative development of time-honored brands, laying a solid cultural and commercial foundation for the consumption of "China-chic" products.

Fourth, we will continue to optimize the consumption environment. The consumption environment and the development of circulation facilities differ between urban and rural areas in China, necessitating different methods, policy guidance and promotion. In cities, we will continue to promote the cultivation and construction of international consumption centers, gradually improve the urban commercial system led by pedestrian streets, supported by smart business districts, and based on convenient living areas, and continuously improve the consumption capacity of cities. In rural areas, we will thoroughly implement the three-year action plan aiming to strengthen the nation's county-level commerce system , accelerate the shoring up of weak links in rural commerce, build a well-equipped and smooth two-way rural circulation network, encourage industrial products to go to the countryside and agricultural products to go to the city, and continue to release rural consumption potential.

Thank you.

CNBC:

The scale of foreign investment attracted by China declined in 2023. What are the main reasons for this? What measures will the MOFCOM take to attract more foreign investment this year? What areas will the MOFCOM pay more attention to? Thank you.

Wang Wentao:

Thank you for your questions. These are pressing questions that everyone is closely monitoring. I will elaborate on them.

Domestic and international media have closely monitored fluctuations in the scale of China's foreign investment attraction, with many reports on the subject. First, instead of delving into a series of data analyses, let me start with perspective and vision. What I want to emphasize is that this issue should be observed and analyzed from multiple perspectives. Premier Li Qiang, in a recent speech in Davos, mentioned that one must broaden their vision and take a panoramic view to see the whole picture in an objective and comprehensive manner . This is how I will answer your question.

If we take a longer-term perspective, China's foreign investment scale has remained high in recent years. Last year, China actually utilized foreign investment of $163.25 billion, equivalent to 11.3 trillion yuan. Although this was a year-on-year decline, the scale was only surpassed by two exceptional years, 2021 and 2022, ranking as the third highest in history.

From a structural analysis perspective, we look not only at the numbers but also at the structure of foreign investment, which involves analyzing its quality. The structure of foreign investment in China has continuously been optimized, with the proportion of high-tech industries reaching 37.4%, up 1.3 percentage points from 2022, reaching a historical high. In particular, the proportion of foreign investment in the manufacturing sector has increased by 1.6 percentage points to 27.9%. However, the rankings of countries can be influenced by certain foreign projects, especially large-scale projects from specific nations, introducing a level of uncertainty. Looking at the country-specific investment situation in 2023, developed countries such as Canada, the United Kingdom, France, Switzerland, and the Netherlands have significantly increased their investments in China. The number of newly established foreign-funded enterprises in China from the European Union, the United States, and Japan has also seen growth.

As mentioned earlier, short-term foreign investment data may experience fluctuations. This is a normal phenomenon in accordance with economic laws. In particular, the implementation of large-scale projects often affects the fluctuations of the current and following years. The fundamental strength of China's long-term economic growth remains unchanged, especially with China's commitment to the fundamental national policy of opening up to the outside world. China has always embraced an open attitude and sincerely welcomes enterprises from all countries to invest in China. We firmly believe China will continue to be a popular destination for foreign investment.

Last year, following central deployments, the MOFCOM conducted the "Invest in China" campaign to attract foreign investment. Throughout the year, we hosted 20 key events and facilitated over 600 supporting activities in various regions. These efforts led to the signing of several major projects and resolved numerous issues. We also established a system of roundtable meetings with foreign-funded enterprises to enhance regular communication and exchange with them and foreign business associations. At the ministerial level, my colleagues and I organized 15 roundtable meetings last year, with the participation of over 400 foreign-funded enterprises and foreign business associations. Through face-to-face interactions, we gained insights into the suggestions and needs of these enterprises and continued to work towards resolving their issues. We have also heard from some foreign-funded enterprises that these activities not only address specific issues but also demonstrate China's determination to openness and its welcoming attitude toward foreign investment. They have also recognized the pragmatic and efficient approach of the Chinese government, which has further strengthened their confidence in the Chinese market and economy. Some foreign-funded enterprises have asked where the next "China" will be. However, they firmly believe that the "next China" will still be China. They will continue to choose China and establish their businesses here.

Building on last year's "Invest in China" campaign, we are continuing to develop the "Invest in China" brand this year. We have preliminary plans to organize over 20 investment promotion activities, both domestically and internationally. These activities will include a flagship event, the 2024 "Invest in China" Summit, as well as 10 overseas activities and 12 domestic activities. We will support local governments in hosting complementary events under the "Invest in China" brand, leveraging their regional advantages, resource endowments, and industrial characteristics. This coordinated approach will create a unified national investment promotion strategy. Many of you in the media have shown interest in or reported on the "Invest in China" campaign last year. We kindly request your continued coverage of our "Invest in China" brand series of activities this year. We hope you will provide comprehensive and in-depth reporting to enhance the impact of these events.

In addition to building the "Invest in China" brand, we will continue implementing the 24-point guidelines for attracting foreign investment introduced last year. Our efforts will focus on easing access to foreign investment, continuously optimizing the investment environment for foreign businesses, and effectively utilizing the Foreign-Funded Enterprises Roundtable Meetings. We will also maintain the system for gathering and responding to the concerns and needs of foreign-funded enterprises. The Foreign-Funded Enterprises Roundtable Meetings have now been institutionalized, with a monthly schedule in place. These meetings will cover different industries, regions, or countries, totaling 12 sessions. Our aim is to make these roundtable meetings a platform for open and practical communication and exchanges with foreign-funded enterprises.

Yesterday afternoon, I had a discussion with a Japanese business delegation visiting China. They all expressed their hope for a secure and reassuring environment to develop in China. We are also willing to ensure a secure and reassuring environment for all foreign-funded enterprises, including Japanese companies, to develop in China. In other words, we are committed to making efforts to realize the vision put forward by foreign-funded enterprises that the "next China" will still be China. Thank you all.

Hong Kong Bauhinia Magazine:

Chinese President Xi Jinping announced eight actions to promote the high-quality development of the Belt and Road Initiative at the third Belt and Road Forum for International Cooperation (BRF). May I ask what new considerations and measures the MOFCOM has in place to implement and deepen mutually beneficial cooperation with Belt and Road partner countries? Thank you.

Guo Tingting:

Thank you for your question. In last October, the third BRF was successfully held in Beijing. Chinese President Xi Jinping delivered an important speech and announced eight actions to promote the high-quality development of the Belt and Road Initiative. This has set the direction and provided fundamental guidance for the next "golden decade" of Belt and Road cooperation.

Over the past year, the MOFCOM, in collaboration with relevant parties, has made substantial efforts to promote new progress and achievements in Belt and Road economic and trade cooperation. This can be summarized in three main aspects:

First, the scale has steadily expanded. In 2023, the total merchandise trade volume between China and Belt and Road partner countries reached 19.5 trillion yuan, up 2.8%. This accounted for 46.6% of China's total foreign trade, an increase of 1.2 percentage points. Our non-financial direct investment in Belt and Road partner countries amounted to 224.09 billion yuan, growing by 28.4%. The turnover of contracted projects reached 930.5 billion yuan, showing a 9.8% increase.

Second, the quality has continuously improved. The turnover of contracted projects in energy conservation and environmental protection sectors has increased by 28.3% among BRI partner countries. A batch of signature projects and small-scale yet impactful programs have been successfully promoted, with the implementation of nearly 700 various assistance projects among these countries.

Third, cooperation has become more tight-knit. During the third BRF, we successfully held the thematic forum on trade connectivity, and launched the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development alongside more than 30 countries. Twenty-three memorandums of investment and cooperation in green, digital and marine sectors were signed last year. So far, we have set up trade connectivity working groups with 22 BRI partner countries and working groups on investment and cooperation with 55 BRI partner countries, and signed MoUs on e-commerce cooperation with 30 countries.

In the next steps, we will fully implement the guiding principles of President Xi Jinping's speeches and focus on carrying out eight major steps, adding more substance to BRI economic and trade cooperation. Next, we will deepen our work in four aspects.

First is to deepen trade and investment cooperation. In trade, we will actively expand the import of quality goods from BRI partner countries, enhancing the balanced development of trade. We will expand trade in services in a positive manner and better leverage the trade corridors such as the China-Europe Railway Express and the New International Land-Sea Trade Corridor. In investment, as Mr. Wang Wentao introduced earlier how to deliver a satisfactory performance in the work related to foreign investment, we will provide environment and services with higher quality for investment from BRI partner countries, sharing China's development opportunities with BRI partner countries. At the same time, we will encourage enterprises to develop new ways for outbound investments, including expanding the tri-party and multiparty market cooperation and improving and upgrading overseas economic and trade cooperation zones.

Second is to promote the construction of cooperation projects. We will promote both signature projects and "small-scale yet impactful" livelihood programs. We will enhance communication with BRI partner countries, and advance joint infrastructure projects in fields such as energy, transportation, and communication, building a multidimensional Belt and Road connectivity network. Additionally, we will focus on health, education, environment protection, and poverty reduction, and promote the completion of more projects benefiting local people, boosting the economic and social development of BRI partner countries.

Third is to explore new areas of cooperation. In green development, for example, we will continuously make ‘green' a defining feature of the Belt and Road Initiative, sign memorandums of investment cooperation on green development with more countries, and encourage enterprises to carry out further practical cooperation in fields such as green infrastructure, green energy, and green transportation. In the digital field, we will expand e-commerce cooperation with BRI partner countries, accelerate the construction of pilot zones for Silk Road e-commerce cooperation, and ensure the success of the third Global Digital Trade Expo .

Fourth is to deepen the implementation of cooperation achievements. We will strive to implement the outcomes of the third BRF and carry out and promote the Initiative on International Trade and Economic Cooperation Framework for Digital Economy and Green Development . We will advance the construction of the pioneering zone for in-depth China-Africa trade and economic cooperation and build joint demonstration zones for innovative development of economy and trade with ASEAN countries. Furthermore, we will enter into or upgrade free trade agreements and investment protection treaties with more BRI partner countries, providing strengthened institutional safeguards for high-quality Belt and Road cooperation.

Thank you.

Market News International:

In 2024, does the Ministry of Commerce expect any progress in China's application to join the CPTPP? And what new measures will the Ministry of Commerce take this year to support China's application? Thank you. 

Wang Shouwen:

Thank you for your questions. We highly value China's application for CPTPP and have organized relevant departments and industries to carry out full, encompassing, and deep evaluations on all terms within CPTPP. We have also conducted comprehensive, in-depth, and abundant research on CPTPP's rules with regard to trade in goods and services and investment. We conclude that we are confident and able to meet CPTPP's high standards. Therefore, last year we prepared a document for the application, making introduction and interpretation on matters involving all obligations of the CPTPP from our position. We have presented the document to all CPTPP member countries.

You asked about our measures this year. First, we will proceed to conduct in-depth communication with CPTPP member countries at all levels, including in-depth communication in multilateral international conferences like G20 and APEC. Second, in 2023, following the decisions and deployment of the CPC Central Committee and the State Council, and aligning with high-standard international economic and trade rules, including those within CPTPP, we have released two important documents, including measures on promoting institutional opening-up in eligible pilot free trade zones and the free trade port in line with high-standard international economic and trade rules and an overall plan for promoting the high-standard institutional opening-up of China (Shanghai) Pilot Free Trade Zone in line with high-standard international economic and trade rules . Emphasizing these high international standards, we have formulated measures for domestic institutional opening-up for practices in China. If effective, we will replicate and apply these practices elsewhere. Therefore, we will enhance international communication and advance domestic pilot practices. I believe our conditions for joining CPTPP will be right this year.

Phoenix TV:

At last year's summit meeting in San Francisco, the Chinese and U.S. presidents fostered a future-oriented San Francisco vision . We have also noted that the MOFCOM and its U.S. counterpart established a multi-tiered communication and exchange mechanism last year. How does the MOFCOM view the trend of Sino-U.S. economic and trade relations for this year? What specific considerations are there for the economic and trade cooperation? Thank you.

Wang Wentao:

I'll answer your questions. This year marks the 45th anniversary of the establishment of diplomatic relations between China and the U.S. Looking back, bilateral trade has grown by more than 200 times during the past 45 years, with two-way investment stock exceeding $260 billion. According to our statistics, over 70,000 American enterprises have invested and operated in China. China and the U.S., being the world's largest developing and developed countries, respectively, are each other's important trade partners, with two-way trade and investments surging and the industrial and supply chains closely integrated. Sino-U.S. economic and trade collaboration has expanded from a singular focus to various sectors of the economy, contributing substantially to the economic and social development of both countries as well as the well-being of the two peoples. 

The Chinese and U.S. presidents met in San Francisco last November, fostering a future-oriented San Francisco vision . This has pointed to the direction for the development of bilateral economic and trade relations and greatly bolstered the confidence and expectations of the business communities in both countries in engaging in economic and trade cooperation. We always believe that the common interests of China and the U.S. in economic and trade sectors far outweigh our differences. Both parties should enhance dialogues and exchanges, work to help enterprises address various challenges encountered in practical economic and trade cooperation, and explore the potential of such collaboration. For example, many enterprises from the two countries, especially those from the U.S., have expressed that their main concerns relate to the current state of Sino-U.S. relations, worrying about the politicization of economic and trade issues. If "de-risking" is to be executed, this is the greatest risk, without doubt, as some American enterprises told us. They also expressed hope that I could share their concern with my American counterpart on an appropriate occasion. In addition, the enterprises are concerned about some other issues, including a substantial increase in operational costs due to additional tariffs and obstacles to market access due to two-way investment limitations. Sanctions have posed uncertainties to enterprises and their partners, highly elevating their compliance costs. These are all issues both sides need to discuss in the future and work to resolve. We are sincerely committed to driving the resolution of issues that concern businesses.

Next, China is willing to faithfully implement the San Francisco vision with the U.S. and fully leverage the communication and exchange mechanism developed by the MOFCOM and its U.S. counterpart and the export control information communication mechanism. The former mechanism includes ministerial talks, biannual, vice-ministerial conferences, and monthly negotiations at the director level. The two countries should maintain regular communication, properly manage differences, strengthen mutual understanding and trust, promote practical cooperation, and strive to create a favorable environment for economic and trade cooperation, especially the stability of enterprises. 

Thank you.

Shou Xiaoli:

Due to the limited time, the last question, please.

Southern Metropolis Daily:

China's cross-border e-commerce imports and exports maintained rapid growth in 2023. What were their overall characteristics? The Central Economic Work Conference emphasized the expansion of cross-border e-commerce exports. To this end, what specific measures will the MOFCOM take this year?

Wang Shouwen:

Thank you for your questions. General Secretary Xi Jinping underscored the promotion of the accelerated development of cross-border e-commerce and other new business forms and models. Cross-border e-commerce is one of the new growth drivers of foreign trade. Just now, Mr. Wang Wentao introduced that cross-border e-commerce played a crucial role in China's positive growth in foreign trade last year. China's cross-border e-commerce imports and exports recorded 2.38 trillion yuan last year, an increase of 15.6% and 15.4 percentage points higher than the nation's overall growth rate of imports and exports.

The entities of cross-border e-commerce are constantly expanding. Preliminary statistics indicate that there are now 645,000 enterprises across China with actual imports and export performance, among which more than 10,000 are cross-border e-commerce players. This represents a remarkable force. 

Our cross-border e-commerce ecosystem is continuously improving. Previously, well-known cross-border e-commerce platform companies were predominantly from the U.S. Now China also boasts powerful and renowned cross-border e-commerce platforms, with their app downloads ranking among the top globally. We also have mature platforms and overseas warehouses. By the end of last year, we had 1,800 overseas warehouses and 255 all-cargo airplanes, an increase of more than 200 and 32 from 2022, respectively.   

Additionally, we have made marked progress in brand building. For instance, one notable aspect of cross-border e-commerce lies in its direct engagement with foreign consumers, bypassing intermediaries and directly presenting the brands of Chinese export businesses. By the end of last year, the number of overseas trademarks we registered exceeded 30,000, up from 20,000 by the end of 2022. 

This year, we will continue to nurture cross-border e-commerce as a new growth driver for foreign trade. The measures are as follows: First, we will introduce "Measures for Expanding Cross-Border E-Commerce and Promoting the Development of Overseas Warehouses." Second, we will develop "cross-border e-commerce plus industrial belts," encourage traditional foreign trade enterprises to transition into cross-border e-commerce, support leading enterprises in driving the coordinated development of upstream and downstream supply chains, and incubate more startups based on the cross-border e-commerce industrial parks nationwide. Third, we will strengthen industry exchanges and training. Yesterday, we organized an on-site meeting for cross-border e-commerce overseas warehouses in Shenzhen, inviting representatives from government departments, the industry, and cross-border e-commerce enterprises for discussion. This year, we plan to intensify training efforts to train 100,000 individuals. Fourth, we will promote the issuance of the "Guidelines for Cross-Border E-Commerce Intellectual Property Protection." In the development of cross-border e-commerce, we aim to ensure the protection of intellectual property in all links of the first stage, the last stage, payment, marketing, and overseas warehousing. Ms. Guo just mentioned the Belt and Road cooperation. Cross-border e-commerce represents an important part of cooperation with Belt and Road partner countries. We will support international exchanges within cross-border e-commerce integrated pilot zones and pilot zones for Silk Road e-commerce cooperation . We believe that cross-border e-commerce will play a more significant role as a new growth driver for foreign trade. Thank you. 

Shou Xiaoli:

Thanks to all the speakers and friends from the media. Today's press conference is hereby concluded. Goodbye! 

Translated and edited by Wang Yiming, Wang Qian, Zhang Rui, Wang Wei, Xu Kailin, Yang Xi, Yan Bin, Liu Caiyi, Li Huiru, Wang Ziteng, Wang Yanfang, Ma Yujia, Xu Xiaoxuan, 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.