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:
Ms. Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
April 12, 2024
Shou Xiaoli:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we will conduct a routine release of economic data from the first quarter of this year. 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 import and export performance in the first quarter of 2024, and also take your questions.
Now, I'll give the floor to Mr. Wang.
Wang Lingjun:
Ladies and gentlemen, good afternoon. It is my pleasure to meet with you again. Welcome everyone to today's press conference. I will start by briefing you about China's import and export performance in the first quarter of this year, and then my colleague and I will take your questions.
In the first quarter of this year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China has adhered to the general principle of pursuing progress while ensuring stability. It has also worked to fully and faithfully apply the new development philosophy on all fronts, moved faster to create a new pattern of development, and thoroughly promoted high-quality development. As a result, the national economy has sustained its recovery momentum, making steady improvements in the quality of foreign trade and new milestones in the scale of imports and exports. Specifically, the country's foreign trade in the first quarter has the following five features:
First, China's scale of foreign trade during the January-March period exceeded 10 trillion yuan (about $1.38 trillion) for the first time in history, while the growth rate hit a six-quarter high. Customs statistics show that in the first quarter of the year, the country's foreign trade in goods stood at 10.17 trillion yuan, up 5% year on year. Specifically, exports from China increased 4.9% year on year to 5.74 trillion yuan, while imports rose 5% year on year to 4.43 trillion yuan, 4.1 and 2.3 percentage points faster than the growth rate in the fourth quarter of 2023, respectively.
Second, China's trade with the Belt and Road Initiative (BRI) partner countries and other BRICS countries grew at a rate higher than the overall level. From January-March, the country's trade with BRI partner countries reached 4.82 trillion yuan, up 5.5% year on year, accounting for 47.4% of total foreign trade volume, 0.2 percentage points higher than the same period last year. Notably, trade with member states of the Association of Southeast Asian Nations (ASEAN) increased 6.4% year on year to 1.6 trillion yuan. Trade with the nine other BRICS nations reached 1.49 trillion yuan during the same period, up 11.3% year on year, accounting for 14.7% of the country's total foreign trade volume. In addition, trade with the European Union, the United States, South Korea and Japan hit 1.27 trillion yuan, 1.07 trillion yuan, 535.48 billion yuan and 518.2 billion yuan, accounting for a combined share of 33.4% of the total.
Third, the imports and exports of private businesses in China sustained double-digit growth. In the first quarter of the year, the foreign trade value of the country's private businesses reached 5.53 trillion yuan, an increase of 10.7% over the same period last year, accounting for 54.3% of the country's total. Concurrently, the imports and exports of foreign investors in the country stood at 2.97 trillion yuan, accounting for 29.3% of the total, while that of state-owned enterprises stood at 1.64 trillion yuan, accounting for 16.1%.
Fourth, China's exports of machinery and electronic products as well as labor-intensive products witnessed robust growth momentum. During the January-March period, the country's export value of machinery and electronic products expanded 6.8% year on year to 3.39 trillion yuan, accounting for 59.2% of the total. Among this, the exports of computers and computer components, vehicles and ships saw year-on-year increases of 8.6%, 21.7% and 113.1%, respectively. In addition, the exports of labor-intensive products amounted to 975.72 billion yuan, up 9.1% over the same period last year. Within this category, exports of textiles and garments, plastic products, as well as furniture and furniture parts grew by 5.4%, 14% and 23.5% year on year, respectively.
Fifth, the imports of major commodities and consumer goods related to people's livelihoods expanded steadily. In the first quarter of this year, the country's imports of major commodities, including energy resources, metal ores and grain increased 6.2% year on year. Among them, the imports of energy products such as crude oil, natural gas and coal grew 8% year on year to 286 million metric tons; and metal ores like iron and aluminum increased 5% to 374 million metric tons. Grain imports amounted to 38.42 million metric tons, up 5.1% year on year. Concurrently, the imports of machinery and electronic products expanded 9.6% year on year. Among them, the imports of electronic components rose 13%. Meanwhile, imports of textiles and garments as well as dried and fresh fruits and nuts expanded 12.6% and 18%, respectively.
Overall, China's foreign trade got off to a robust and promising start in the first quarter of the year, laying a solid foundation for meeting the annual target of steadily increasing the volume and raising the quality of foreign trade. Currently, the international environment is undergoing profound changes, and the global economy is facing multiple grave challenges, all of which will pose greater tests to China's foreign trade. However, at the same time, we should also acknowledge that the country's overall economy continues improving; its comprehensive competitiveness in foreign trade keeps strengthening; and its sound growth momentum in imports and exports is being further consolidated.
Customs authorities bear the responsibility of safeguarding borders and driving development. We will work under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly act on the decisions of the Central Economic Work Conference and the government work report. We will adhere to the general principle of pursuing progress while ensuring stability. By enhancing the construction of Smart Customs and leveraging its enabling role in building China's strength in customs services, we will ramp up efforts to optimize the business environment at ports, facilitate cross-border commerce, and steadily increase the volume and quality of foreign trade. Through these efforts, we aim to play our part in achieving the annual socioeconomic growth targets and celebrate the 75th anniversary of the founding of the People's Republic of China with significant accomplishments.
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Shou Xiaoli:
Thank you, Mr. Wang. The floor is now open for questions. Please identify the media outlet you work for before raising your questions.
China Daily:
You just mentioned that China's foreign trade maintained steady growth in the first quarter, with increases in both imports and exports. How do you view China's foreign trade situation in the first quarter? Considering the current global economic situation and geopolitical changes, what difficulties and uncertainties might we anticipate in the second quarter? What measures is the customs department implementing to address these? Thank you.
Wang Lingjun:
Thank you for your questions, which touched on three aspects. I'll address each one in turn. Against the backdrop of the country's sound economic fundamentals, and thanks to the hard work, pioneering spirit, and innovation of the vast number of people engaged in foreign trade, China has made new strides in the high-quality development of foreign trade. We have continued to improve the quality of foreign trade while sustaining the volume of imports and exports. As a result, China's foreign trade saw growth in both imports and exports in the first quarter.
First, we have enhanced the dynamism of market entities. In the first quarter, the number of foreign trade enterprises engaged in imports and exports grew by 8.8%. The number of private companies and foreign-invested enterprises increased by 10.4% and 1%, respectively. Additionally, the foreign trade volume of state-owned companies reached a historic high during the same period.
Second, we have cultivated new growth drivers. In the first quarter, China's imports and exports of intermediate goods increased by 4.4%. Meanwhile, the imports and exports of China's cross-border e-commerce grew by 9.6%. The number of overseas warehouses established by Chinese enterprises for cross-border e-commerce purposes rose by 11.8%. We have accelerated the development of new business forms and models.
Third, regional development has leveraged its distinctive strengths. The country's eastern, central, western, and northeastern regions have each capitalized on their respective advantages and made contributions. The eastern region has taken on major responsibilities, with the growth rate of exports and imports in the first quarter being 2.7 percentage points and 1.2 percentage points higher than the overall rate, respectively. The central region has shown a shift toward advanced and green transformation in the manufacturing sector, with exports of advanced equipment and electric vehicles increasing by 42.6% and 107.3%, respectively. The western region has managed industrial transfers in an orderly manner, and the imports and exports of the processing trade have shifted from decline to growth. New progress has been made in foreign trade to fully revitalize northeast China. The volume of imports and exports in the first quarter exceeded 300 billion yuan for the first time.
Fourth, our trading partners have become more diversified. In the first quarter, China's trade with BRI partner countries increased by 5.5%, 0.5 percentage point higher than the overall growth rate. Trade with Latin America and the five Central Asian countries achieved double-digit growth. During the same period, trade with traditional markets such as the U.S. and Japan showed positive recovery trends, with the decline in imports and exports in the first quarter narrowing by 5.9 percentage points and 1.2 percentage points, respectively, compared to 2023.
Looking ahead to the second quarter, foreign trade faces some difficulties and challenges, including geopolitical tensions and trade protectionism. However, there are also many favorable factors for foreign trade development. Global trade is showing signs of a steady recovery. On Wednesday, the WTO also predicted a rebound in trade, estimating that the volume of world trade in merchandise will grow by 2.6% in 2024. The latest report from the U.N. Conference on Trade and Development is also optimistic about the global trade in goods. According to the China Customs Trade Prosperity Statistical Survey , in March, there was a significant increase in the proportion of enterprises reporting higher export and import orders compared to the previous month. It is expected that China's imports and exports will continue to improve in the second quarter, maintaining a growth trend for the first half of the year.
To act in accordance with the guidelines of the CPC Central Committee and the State Council, customs will focus on the high-quality development of foreign trade and continue to introduce new policies and measures to improve regulatory efficiency and services. In March, we convened a meeting on launching a special campaign aimed at promoting cross-border trade facilitation, during which we proposed 33 reform and innovation measures to benefit enterprises and the public. Moving forward, customs will continue to follow up on implementing these policies and measures. Additionally, we aim to better understand the expectations and demands of enterprises and local governments. We will focus on promoting trade facilitation, optimizing the business environment at ports, reducing costs and fees for enterprises, and fostering new growth drivers for foreign trade. We will introduce more timely and effective policies and measures and spare no effort to support the steady and high-quality development of foreign trade. Thank you.
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Red Star News:
As previously mentioned, the imports and exports of private enterprises maintained double-digit growth in the first quarter, continuing to play a leading role in China's foreign trade. What were the key achievements? What steps are planned to help private enterprises participate in international competition?
Wang Lingjun:
Thank you for your questions. In recent years, private enterprises have delivered remarkable results in foreign trade, continuously providing surprise and excitement. Mr. Lyu will provide more detailed information about this topic.
Lyu Daliang:
Good afternoon, friends from the media! I am very pleased to share insights into the import and export performance of private enterprises in the first quarter.
The imports and exports of private enterprises maintained strong momentum in the first quarter, achieving double-digit growth. Mr. Wang also mentioned this earlier. I believe that there are at least three aspects worth applauding and celebrating for private enterprises, which are as follows:
First, increased contribution. Looking at the number of market entities, about nine out of 10 foreign trade enterprises with import and export records are private enterprises. In terms of growth rates, the export and import growth rates of private enterprises are 4.8 percentage points and 7.8 percentage points higher, respectively, than the overall rate. The share of foreign trade volume accounted for by private enterprises in China's total imports and exports has increased to 54.3%, further cementing their principal role in stabilizing foreign trade.
Second, the innovation capacity of private enterprises is becoming increasingly stronger. Private enterprises are the driving forces behind innovation and creativity, and they have become the largest importers and exporters of high-tech products in China. In the first quarter, imports and exports of high-tech products by private enterprises grew by 16.2%, 12.2 percentage points higher than the overall growth rate for similar products. Specifically, exports of ships and marine engineering equipment, and rail transportation equipment increased by 90.5% and 24.9%, and imports of high-end machine tools grew by 14.8%. Private enterprises have made significant contributions to accelerating the cultivation and development of new quality productive forces in foreign trade.
Third, private enterprises have increasingly diverse trading partners. Chinese private enterprises have fearlessly ventured into new markets and expanded their business to all corners of the world. They have established close trade connections with various countries, including Chile in South America, Norway in Northern Europe, and neighboring Southeast Asian countries. In the first quarter, private enterprises performed well in both traditional and emerging markets. Their imports and exports with the European Union, the United States, and Japan increased by 1.8%, 9% and 6.7%, respectively. Meanwhile, their imports and exports with ASEAN, Latin America, and Africa grew by 10.9%, 20.2% and 12.8%, respectively.
Overall, private enterprises have shown positive momentum and promising prospects in foreign trade. Next, customs will continue to work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector, as well as fully implement the guidelines and their supporting measures on promoting the development of the private sector, with a focus on explaining policies for enterprises and further addressing prominent problems concerning market access, access to factors of production, impartial law enforcement, and protection of rights and interests. Through these efforts, we will continuously stimulate the endogenous motivation and innovative vitality of foreign trade companies, including private enterprises. Thank you.
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Reuters:
Good afternoon. A question from Reuters. Analysts say the fact that producer prices continue to decline compared with 2023 levels is evidence of overcapacity among Chinese manufacturers, as that suggests factory owners are cutting costs in the distribution and sales process. China's exports fell 7.5% in March in U.S. dollar terms. So does that show Chinese factory owners are no longer able to cut prices to attract buyers abroad? And what can they do in the future to improve their fortunes? Thank you.
Wang Lingjun:
Thank you for your question. I would like to address it from two perspectives.
First, we do not think that the decline in producer prices necessarily indicates the so-called "overcapacity." The decrease in product prices can often be attributed to various factors, such as fluctuations in raw material prices, technological updates, and voluntary concessions made by manufacturers. Particularly in today's rapidly evolving technological landscape, companies continuously invest in research and development, innovation, and the application of new technologies and processes. This not only improves product quality but also greatly reduces production costs, allowing for the expansion of profit margins downstream.
Second, the global popularity of Chinese products stems from their innovation and quality. For example, China's strong research and development capabilities have led to the creation of smart and environmentally friendly home appliances that provide consumers with a better experience, meeting their higher demands for quality of life. Similarly, China's reliable, durable, and high-performance engineering machinery, coupled with comprehensive after-sales service, enjoys global popularity and can be found at major overseas construction sites. Additionally, Chinese ceramics, an important symbol of Chinese civilization, embody Chinese culture and stories and are exported internationally. These achievements are the results of our companies' diligent efforts and the rational choices of numerous users and consumers. Thank you.
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China News Service:
In 2024, the BRICS group expanded to include 10 member countries. Could you please make an introduction to China's trade with other BRICS countries? What are the expectations for the future? Thank you.
Lyu Daliang:
Since the first BRICS summit in 2009, China's trade relations with other BRICS countries have become increasingly close. The import and export value between China and the other four BRICS countries — Russia, India, Brazil, and South Africa — grew from 960.21 billion yuan in 2009 to 4.32 trillion yuan in 2023, with an average annual growth rate of 11.3%. This growth rate is 3.8 percentage points higher than China's overall import and export growth rate during the same period.
In 2024, the BRICS cooperation mechanism entered a new stage as Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia officially became members of the BRICS group. In the first quarter, China's imports and exports with the other nine BRICS countries reached 1.49 trillion yuan, an increase of 11.3%, accounting for 14.7% of the country's total imports and exports. China's cooperation with the other BRICS countries exhibits strong complementarity across various sectors, characterized by distinct features in imports and exports.
China is Brazil's largest trading partner and largest export market, while Brazil is China's largest trading partner in Latin America. In the first quarter, China's exports to Brazil reached 114.28 billion yuan, an increase of 25.7%, and imports from Brazil amounted to 208 billion yuan, with a growth rate of 30.1%, indicating a rapid increase in imports. Trade between China and Russia continues to expand. In 2023, the two countries achieved their joint annual trade target of $200 billion set by their top leaders ahead of schedule. Since the beginning of this year, trade between China and Russia has continued to grow in sectors such as energy, automobiles, and general machinery equipment. Trade between China and India has seen year-on-year growth for five consecutive quarters, with an increase of 8.5% in the first quarter, maintaining a good development momentum. South Africa has been China's largest trading partner in Africa for 14 consecutive years. In the first quarter, China's exports to South Africa amounted to 35.11 billion yuan, while imports from South Africa reached 66.46 billion yuan.
In addition, China has maintained good cooperation with Saudi Arabia and the United Arab Emirates when it comes to energy trade. In the first quarter, both countries were among China's top 10 import sources for energy products. China has carried out pragmatic cooperation with Egypt and Ethiopia in the field of infrastructure. In the first quarter, China's exports of foreign contracted projects to the two mentioned countries achieved rapid growth. Also, our small commodities are very popular in Iran. In the first quarter, China's export volume to Iran through market procurement trade increased by 15.2%. This answers your first question about the import and export situation of China and other BRICS countries.
Regarding your second question, I think the prospect for cooperation in development is promising, and we are fully confident. The latest forecast from the International Monetary Fund shows that the volume of trade in goods and services in developing countries will grow by 4.5% in 2024, higher than the overall global growth rate of 3.3%. As representatives of emerging markets and developing countries, the BRICS countries are expected to become the current global accelerators for economic recovery and trade development. So far, the BRICS countries' volume of trade in goods holds about 20% of the world's total but trade with each other only accounts for about 10% of their respective total foreign trade, meaning there is still great potential for growth. It is believed that, as the content and areas of cooperation among the BRICS family are further enriched and developed, bilateral and multilateral economic and trade exchanges are expected to achieve more positive growth. Thank you.
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Bloomberg:
My question is about the trade balance last year. Last year, the customs administration reported a good surplus of 823 billion dollars but the State Administration of Foreign Exchange reported a good surplus of 594 billion dollars. Why is there such a difference between these two numbers which should indicate the same thing? The State Administration of Foreign Exchange explained that free trade zones were part of the reason for this difference but this difference in the data only started to appear in 2021 and there hasn't been a radical expansion of free trade zones since 2021. So, can you please explain in detail what you think is the reason that these two numbers are so radically different? Thank you.
Lyu Daliang:
I understand that your question is essentially about the difference between the surplus and deficit of trade in goods according to customs' statistics and the international balance of payments for trade in goods according to the statistics released by the State Administration of Foreign Exchange (SAFE). What I want to say is that the statistical principles of these two numbers are different. The trade in goods calculated by customs is based on the cross-border principle. As long as goods move across borders, they will be included in customs' statistics, regardless of whether or not the ownership of the goods is transferred. The balance of payments for trade in goods in the international payments statistics, compiled by SAFE, is based on the principle of transfer of ownership, regardless of whether or not goods move across borders. This is an important difference between the two statistical methods.
I can give two examples to elaborate. The first example is what is now called factory-free manufacturing, which means that multinational companies entrust domestic companies to manufacture products and then sell them domestically. In this case, there is no cross-border flow of goods, and customs does not count them. But its ownership has been transferred and the balance of payments needs to be calculated. This difference is more prominent when it comes to electronic products, processing and manufacturing.
The second example is processing of supplied materials and bonded warehousing. Ownership of processing of supplied materials does not transfer across borders. The ownership of some bonded warehousing products does not transfer when they cross the border. This kind of cross-border flow must be reflected in customs' statistics, but not in foreign exchange receipts and payments statistics, which is also the reason for the difference.
In addition, the pricing methods of customs' statistics and balance of payments statistics are also different. For customs' statistics, as we all know, imports to China are calculated based on CIF pricing, while exports are calculated based on FOB pricing. China's balance of payments statistics, including our trade in goods and international balance of payments, are based on FOB price, excluding freight charges and insurance. Because of the differences in these statistical principles and methods, the two numbers will show certain changes as the situation changes. For specific figures, both statistics are accessible to the public. You can do your own calculation. Thank you.
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CMG:
We have noticed that imports of bulk commodities such as energy and metal ores continued to increase in the first quarter. Does this mean that domestic demand has increased? As mentioned in this year's Report on the Work of the Government, we should actively increase the import of high-quality products. Can you brief us on the import situation? In addition, what are your expectations for China's import trends this year? Thank you.
Wang Lingjun:
Thank you for your questions. For many years, China has insisted on implementing the strategy of increasing imports. Imports have maintained a good upward trend. Specifically speaking:
First, the import market is huge. China has been the world's second largest import market for 15 consecutive years, with a cumulative import scale of nearly 200 trillion yuan. According to preliminary estimates, last year China accounted for 10.6% of the total global value of imports, continuing to maintain a high standard of more than 10%. In the first quarter of 2024, China's imports have increased in both volume and price, and the scale of imports reached a new high. It can be said that China's large market provides great opportunities to the world.
Second, the demands of production and consumption increased. As the Chinese economy continuously recovers and grows, industrial production has expanded quickly, and consumer needs have increased steadily. The country's huge market and the significant demand for both production and consumption have driven an increase in imports of raw materials, key components, and consumer goods. In the first quarter of this year, the volume of energy product imports and metal ore imports rose by 8% and 5%, respectively. Meanwhile, the import volume of integrated circuits and semiconductor manufacturing equipment increased by 14.3% and 82.7%, respectively. The growth rates of imports in sectors like textiles, garments, dried and fresh fruits, beef, televisions, and racing bicycles all exceeded double-digit increase, and imports of consumer goods related to people's basic everyday needs also had a relatively good performance. Imports of various high-quality products from around the world provide not only more and better choices for domestic consumers but also more opportunities for foreign enterprises.
Third, imported products varied in different regions. Leveraging their respective advantages and actively involving themselves in the nation's new development dynamic, all regions nationwide have diligently implemented the strategy for coordinated regional development . These efforts have brought a fresh look for imports featuring distinctive characteristics, high complementarity, and great diversity. Playing a leading role in opening-up, the Yangtze River Delta region is the most important field for importing high-tech products and consumer goods. Nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area performed strongly in the electronics industry, with the import volume of computer accessories and integrated circuits up by 74.2% and 19.2%, respectively, accounting for over 40% of the national total. The Beijing-Tianjin-Hebei region plays a prominent role in guaranteeing the supply of bulk commodities and covers more than half of the country's crude oil, natural gas, and grain imports. The central and western areas accelerated their industrial transformation and witnessed double-digit growth in imports of semiconductor manufacturing equipment and flat-panel display modules. Traditional industrial bases in the northeast region were revitalized, with imports of automotive parts and agricultural machinery increasing by 4.5% and 62.2%, respectively, both surpassing the national average.
Generally speaking, thanks to its vast market and varied market demands, the Chinese economy is poised to swiftly unleash its market potential, offering sustained support for imports and bringing more benefits to a wider global market. Moving forward, the GAC will follow the guidance of decisions and deployments on boosting the imports of high-quality goods released in this year's government work report and consistently implement various supporting measures. We will also advance quarantine access for high-quality agricultural and food products and expand imports of key components, major raw materials, energy, and resources. More efforts will be made, and more practical measures will be taken to serve high-quality development and high-level opening-up. Thank you.
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Phoenix TV:
This year marks the 60th anniversary of the establishment of diplomatic relations between China and France. Over the past six decades, the two countries have enjoyed increasingly close cooperation in economy and trade. In 2023, the bilateral trade volume reached $78.9 billion, and China's imports of goods from France grew 5.5% year on year. Could you please provide an overview of the current situation regarding imports and exports between the two countries? Additionally, what kinds of expectations do you have for the future? Thank you.
Lyu Daliang:
I will first brief you on the trade situation between the two countries. In March 2019, President Xi Jinping paid a visit to France, which opened a new chapter for Sino-French relations. During the past five years, the two countries have deepened their economic and trade cooperation and achieved fruitful results. From 2019 to 2023, China's imports and exports with France grew by 5.9% annually. At present, France is China's third-largest trading partner within the EU, while China is France's largest trading partner in Asia. In the first quarter of this year, China's imports and exports with France reached 127.22 billion yuan.
In the agricultural products sector, France is China's largest source of imports in the EU. In 2023, China imported French agricultural products with a value of 46.95 billion yuan, up by 50.5% from 2019, and its import value approached 10 billion yuan in the first quarter of 2024. More and more agricultural products, including dairy products, pork and wine sourced from French farms nearly 10,000 kilometers away, are making their way onto Chinese dinner tables.
In the consumer goods sector, China's imports from France grew 12.3% annually during the past five years. Among them, imports of cosmetics, bags, jewelry, clothing, and clocks and watches have exceeded double-digit growth in terms of the average annual growth rate. At the same time, Chinese products have become increasingly popular in France. During the past five years, China's consumer goods exports to France grew by 3.9% annually. In the first quarter of this year, China's exports of household appliances, mobile phones, furniture and toys to France increased by 30.6%, 27%, 24.3% and 28%, respectively.
In the high-tech products sector, France is China's major source of imports for aircraft and aerospace components, which accounted for around 30% of China's total import volume of the same kind in the past five years. Currently, the two countries are expanding their cooperation on sci-tech innovation. During the past five years, China's imports of material technology products, biotechnology products, and integrated circuits from France grew annually by 38.8%, 13.9% and 14%, respectively, enjoying double-digit growth. In the first quarter of this year, imports of these products exceeded double-digit growth.
Regarding your second question, as China and France strengthen their comprehensive strategic partnership, they will expand exchanges and cooperation widely and deeply through close communication and coordination, pushing their bilateral economic and trade relations to a new level. Thank you.
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Nanfang Daily, Nanfang+:
Since 2014, cross-border e-commerce has been included in China's government work reports for 11 consecutive years, and it has also become a new driving force for the growth of foreign trade. May I ask, in the first quarter of this year what was the import and export situation of cross-border e-commerce like? What has customs done to promote the sound development of cross-border e-commerce? Thank you.
Lyu Daliang:
With the development of internet technology, cross-border e-commerce, leveraging advantages such as online transactions, contactless delivery and short transaction chains, has helped consumers and producers from various countries "purchase and sell globally," and has become a "new force" in global trade.
The rapid development of global cross-border e-commerce has not only facilitated global access of Chinese products but has also become an important channel for foreign consumer goods to enter the Chinese market. In the first quarter, according to preliminary calculations, China's cross-border e-commerce imports and exports totaled 577.6 billion yuan, an increase of 9.6% year on year. Among them, the exports totaled 448 billion yuan and imports totaled 129.6 billion yuan. What I would like to clarify is that according to China's cross-border e-commerce statistical survey system, cross-border e-commerce statistical surveys are conducted twice a year, including a full-year survey of the previous year and a survey of the first half of the current year, with monthly and quarterly data as preliminary estimates. Cross-border e-commerce imports and exports are already included in the total import and export volume for the same period.
In recent years, customs have continuously deepened comprehensive reforms of cross-border e-commerce in line with its characteristics and development trends, continuously improved regulatory and service efficiency, ensured the quality, safety and clearance convenience of imported and exported goods, actively promoted the collaborative governance between customs and cross-border e-commerce platforms and effectively advanced the sound and well-regulated development of cross-border e-commerce. Next, customs will work with relevant departments to focus on the difficulties and bottleneck issues in the supervision of cross-border e-commerce, continue to promote innovation in systems, management and services as well as promote the high-quality development of cross-border e-commerce, facilitating domestic and foreign consumers and producers to enjoy more and better products. Thank you.
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The Paper.cn:
The year 2024 marks the beginning of the second decade of the BRI cooperation. May I ask, how was the import and export performance between China and BRI partner countries in the first quarter of this year? What new measures has China's customs taken to advance the BRI cooperation? Thank you.
Wang Lingjun:
Thank you for your questions. Since the proposal of the BRI, economic and trade exchanges between China and BRI partner countries have witnessed a vibrant first decade and are now actively embracing a new golden decade. In the first quarter of this year, trade between China and BRI partner countries continued to maintain good momentum of development. As I have already mentioned the relevant data in the initial briefing, I won't repeat it again now.
In terms of imports, the "Chinese market" continues to bring development opportunities to various countries. In the first quarter, China imported goods from BRI partner countries worth 2.14 trillion yuan, up by 3.6% year on year. Various advantageous commodities from BRI partner countries, such as crude oil from the Middle East, natural gas from Central Asia and metal ores from South America, were exported to China. Meanwhile, we have continued to facilitate the access of high-quality agricultural and food products with agricultural imports from BRI partner countries reaching 149.87 billion yuan in the first quarter. Imports such as sesame from Pakistan, black tea from Sri Lanka and cranberries from Peru all saw double-digit growth, allowing numerous high-quality agricultural products from various countries to enter Chinese households via the jointly developed prosperous Belt and Road route. While bulk commodities might be hard to reach for many, agricultural and food products from all corners of the world can easily be found in supermarkets.
Regarding exports, "Made in China" continues to provide stable supplies to various countries. In the first quarter, China exported goods worth 2.68 trillion yuan to BRI partner countries, up by 7% year on year. China has intensified industrial cooperation with BRI partner countries, achieving double-digit growth in the export of high-tech intermediate products such as electronic information, instruments and high-end equipment, and supporting the industrial development and technological progress of related countries. "Made in China" has effectively met the diverse consumer demands of BRI partner countries with exports of automobiles, household appliances, clothing and accessories increasing by 30.9%, 19.4% and 6% year on year, respectively. From daily consumer goods to large durable goods, Chinese products are widely welcomed by consumers. China and BRI partner countries continue to deepen cooperation in the infrastructure sector, enhancing the long-term development capabilities of BRI partner countries. In the first quarter, China exported 20.04-billion-yuan worth of turnover through overseas contracted projects to BRI partner countries, with exports to ASEAN, the Middle East and Central Asia increasing by 31.4%, 169.3%, and 3.6% year on year, respectively. Exports of photovoltaic products exceeded 30 billion yuan while more than 120,000 sets of renewable energy generators, such as solar and wind power, were exported, supporting the energy transformation and green low-carbon development of BRI partner countries.
In the first quarter of this year, the General Administration of Customs signed 11 cooperation agreements with BRI partner countries, including nine related to the access of agricultural and food products and two related to institutional cooperation. Next, in accordance with President Xi Jinping's proposal of "eight major steps" to support high-quality Belt and Road cooperation at the Third Belt and Road Forum for International Cooperation, customs will enhance communication and coordination with counterpart departments of BRI partner countries, deepen cooperation in port management, supply chain connectivity and agricultural and food product access and make contributions to the stable and far-reaching development of high-quality cooperation of Belt and Road. Thank you.
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21st Century Business Herald:
How was the trade situation between China and other RCEP member countries in the first quarter? What are your expectations for China's future trade with these countries? What efforts has the GACC made in advancing the implementation of the RCEP? Thank you.
Wang Lingjun:
Thank you for your questions. The RCEP, which came into effect on Jan. 1, 2022, has been in force for nearly two years and four months. It has fostered close trade ties among member countries and serves as a vivid example of regional countries sharing development opportunities. I'd like to ask Mr. Lyu to elaborate on the situation.
Lyu Daliang:
I will outline China's import and export situation with other RCEP member countries in the first quarter of this year. According to customs data, total trade between China and the other 14 RCEP countries reached 3.08 trillion yuan, marking a 2.7% increase. This accounted for 30.3% of China's total trade in goods . The trade data reveals the following two main characteristics:
First, regional cooperation has become even closer. In the first quarter, China's exports to other RCEP member countries reached 1.6 trillion yuan, growing by 2%. Among them, the export of intermediate goods increased by 2.1%, accounting for 31.7% of China's total intermediate goods exports. Exports of electronic components and labor-intensive intermediate goods both maintained double-digit growth. During the same period, China's imports from other RCEP member countries amounted to 1.48 trillion yuan, marking a 3.4% increase. Bulk commodities, primarily consisting of metal ores and energy products, saw a 2.8% increase in import volume, constituting 42.3% of China's total bulk commodity imports. The import and export of intermediate products demonstrate the close economic ties and cooperative relationships between regional members.
Second, many import and export enterprises have enjoyed tangible benefits. In the first quarter, imports under the RCEP framework enjoyed preferential treatment worth 24.69 billion yuan, with a tax concession of 670 million yuan, marking increases of 35.3% and 38.7%, respectively. This benefited 4,320 enterprises. In terms of exports, 18,000 enterprises applied for RCEP certificates of origin, covering goods valued at 63.94 billion yuan, reflecting a 2.6% increase. Furthermore, 729 approved exporters issued RCEP statements of origin, involving goods valued at 2.41 billion yuan, marking a 12.6% increase. These measures have brought tangible benefits to relevant enterprises.
As Mr. Wang mentioned, the RCEP has been officially implemented for over two years now. During this period, the GACC has diligently implemented the arrangements of the CPC Central Committee and the State Council regarding the implementation of the RCEP. We have focused on building a globally-oriented network of high-standard free trade areas, implementing customs procedures and trade facilitation rules, strengthening international cooperation in animal and plant quarantine and food safety, continuously improving the quality of public services for the RCEP, and promoting the effective implementation of policies such as tariff concession under the RCEP framework.
Next, the GACC is committed to maintaining high-quality implementation of all RCEP-related initiatives. We will enhance international exchanges and cooperation with customs authorities of RCEP member countries, promote the establishment of an online platform providing services related to certificates of origin and preferential treatment for enterprises, conduct training in RCEP-related fields, and help local governments, industries and enterprises seize opportunities under the RCEP framework and fully benefit from policy dividends. Thank you.
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Shou Xiaoli:
The last two questions please.
Guangming Daily:
We have noticed that the World Customs Organization's Global Authorized Economic Operators (AEO) Conference will be held this May in China for the first time. Could you please provide an overview of the event preparations? Thank you.
Wang Lingjun:
Thank you for your question. AEO stands for "authorized economic operator," which is an accreditation system advocated by the World Customs Organization . It grants preferential treatment and facilitation to companies with high levels of creditworthiness, compliance with laws and security standards. Enterprises that obtain AEO certification benefit from reduced inspections, priority processing, designated contact officer services, and other convenient services during customs clearance. AEO can be considered a "green pass" for global trade, enabling businesses to expedite customs clearance and outperform their competitors in terms of trade costs.
In recent years, the GACC has earnestly implemented the important instructions by General Secretary Xi Jinping, vigorously advancing the international mutual recognition process of AEO and intensifying efforts to foster AEO-certified enterprises. Currently, China has signed AEO mutual recognition agreements with 26 economies, including Singapore and the European Union, covering 52 countries and regions. This achievement maintains China's global leadership in both the number of signed mutual recognition agreements and the number of countries and regions which signed agreements with China. The number of AEO-certified enterprises in China has reached 5,860. In the first quarter of this year alone, the total import and export volume of AEO-certified enterprises exceeded 3 trillion yuan, playing a pivotal role in bolstering China's open economy.
Shenzhen will hold the 6th Global AEO Conference on May 8, which represents the highest-level conference in the global AEO field and the first major international conference hosted by China Customs since the 20th CPC National Congress. It is of great significance in showcasing the achievements of Chinese modernization and assisting in the construction of a major trading nation. Approximately 1,200 representatives from customs authorities worldwide, relevant international organizations, industry associations and AEO enterprises are expected to attend the event themed "Harnessing the Power of AEO Programs for Inclusive and Sustainable Global Trade." The GACC will take this conference as an opportunity to promote the country's advanced experiences and practices in the AEO field, participate in the formulation of international AEO rules, further promote AEO institutional opening-up, continuously expand the "circle of friends" for international AEO mutual recognition, and strive to contribute Chinese wisdom and solutions to the reform of the global governance system. Friends from the media here today are welcome to cover the conference through interviews, publicity and reports. Thank you.
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Zhinews of Shenzhen Satellite TV:
The Guangdong-Macao In-Depth Cooperation Zone in Hengqin officially started closed-loop operation on March 1. What achievements have the customs authorities made in safeguarding the closed-loop operation of the zone? And how will the customs authorities continue to support the construction of the zone going forward? Thank you.
Lyu Daliang:
As this year marks the 25th anniversary of Macao's return to the motherland, there is heightened interest in matters concerning Macao. As a reporter from Shenzhen, you might have a keen interest in Hong Kong and Macao affairs. I would like to share some updates on the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
Construction of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin is a significant decision personally planned, deployed and promoted by General Secretary Xi Jinping. The customs authorities have implemented General Secretary Xi Jinping's important instructions, focusing on the original intention of developing and constructing the zone, based on the integrated development of Hengqin and Macao and vigorously promoting the high-quality development of the zone. Since this January, we have successively introduced the Supervision Measures for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and eight supporting customs business announcements. We strive to construct an intelligent customs supervision system that aligns with the high-standard development of the zone, ensuring effective management, openness, efficiency and good user experience.
Hengqin is known for its dual-tier management system, comprising the "first line" and the "second line." The "first line," oriented toward Macao, has seen customs actively seek alignment with Macao's rules and mechanisms, significantly simplifying customs supervision procedures. For example, to expedite vehicle traffic, Guangdong and Macao have implemented "one-time collection, separate processing, and joint inspection and release" for cross-border vehicles, reducing overall clearance time by 50%. For smoother passenger travel, we have implemented a "cooperative inspection, one-time release" mode for health quarantine, set up a "new home" express lane for inbound traffic, and introduced a "one-time clearance" inspection mode for outbound, enhancing the clearance experience of passengers. To accelerate goods clearance, we have adopted a series of measures such as "guaranteed qualification and compliance verification" for Macao-origin goods and "triple linkage and triple consistency" supervision for fresh aquatic products supplied to Macao, actively promoting the connection of inspection and quarantine rules between Hengqin and Macao.
Statistics show that in the first month of closed-loop operation, customs authorities oversaw roughly 1.759 million inbound and outbound crossings on the "first line" and handled 170,000 instances of vehicles entering and exiting. Among them, the "new home" express lane saw over 140,000 passages, while the "one-time clearance" process was used in excess of 740,000 instances.
Regarding the "second line," which deals with the mainland areas outside of Hengqin, the customs authorities have maintained a balance between coordinated development and security, deepening collaborative governance with local authorities. We have pioneered a five-sphere regulatory model integrating classification, risk, intelligence, credit and coordination. This approach has enabled precise and intensive supervision, minimizing the impact on the circulation of goods and items, and striving for greater convenience in the circulation of resources. In the first month of closed-loop operation, vehicles were released from the outbound area over 1.46 million times, and people passed through approximately 4.47 million times, with all lanes running in a smooth and orderly manner, and customs supervision mechanisms operating efficiently and smoothly.
Next, customs authorities will continue to implement various policies and measures, fully support and serve the high-quality development of the cooperation zone, and promote the implementation of the first-phase construction goals and tasks outlined in the general plan for building a Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Thank you.
Shou Xiaoli:
Thank you, Mr. Wang and Mr. Lyu, and thank you to all friends from the media for you participation. That hereby concludes today's press conference. Goodbye.
Translated and edited by Zhu Bochen, Wang Qian, Cui Can, Ma Yujia, Liu Caiyi, Zhang Junmian, Yan Bin, Huang Shan, Lin Liyao, Zhou Jing, Mi Xingang, Li Xiao, Qin Qi, Wang Yanfang, Wang Ziteng, Liu Qiang, Li Huiru, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
