Ministry of Commerce talks about Sino-US economic and trade relations: artificial “decoupling” is inseparable

The Zhitong Finance App learned that on July 18, Minister of Commerce Wang Wentao said at a press conference that after going through ups and downs in Sino-US economic and trade relations, the two sides are still important economic and trade partners for each other. Since 2018, the US side's unilateralism and protectionism have been on the rise, continuously provoking economic and trade frictions. A series of acts have seriously impacted and interfered with normal economic and trade cooperation between China and the US. Although the respective shares of trade between China and the US have declined, overall bilateral trade has remained stable. In 2024, the volume of trade in goods and services between China and the US reached US$688.3 billion and US$155.8 billion, up 18% and 34.7% respectively from 2017. Facts have proved that Sino-US economic and trade cooperation has a solid economic foundation and a foundation of public opinion, and artificial “decoupling” is inseparable.

Looking back on the major achievements of the “14th Five-Year Plan” business development, he said that foreign trade has withstood pressure and shown resilience. Trade in goods has steadily ranked first in the world, and the international market share for exports and imports has stabilized at 14% and above 10%. Trade in services has steadily ranked second in the world, surpassing 1 trillion US dollars for the first time last year. The quality of foreign investment has improved, and the cumulative absorption of foreign capital since the 14th Five-Year Plan has exceeded the expected target of 700 billion US dollars. The “Invest in China” gold sign continues to be polished, and the investment promotion structure is constantly being optimized. International cooperation in the production and supply chain is progressing in an orderly manner. The average annual growth rate of foreign investment exceeds 5%, ranking among the top three in the world. Overall, foreign-contracted projects are rising steadily. China has signed several memorandums of cooperation on the production supply chain with countries that have jointly built the “Belt and Road”.

He also pointed out that China's position in the world's second-largest consumer market is more stable. Our total net worth of social zero increased from 39.1 trillion yuan in 2020 to 48.3 trillion yuan in 2024 last year, with an average annual increase of 5.5%. We also compared it with the US. Judging from the absolute value, our social zero is equivalent to about 80% of the US; however, judging from the actual purchasing power, according to the data and algorithms given by the World Bank, our social zero has already surpassed the US, 1.6 times that of the US.

The original text is as follows:

The State Information Office held a press conference on the theme of “Complete the 14th Five-Year Plan with High Quality” series (Ministry of Commerce)

Shou Xiaoli, Director of the Information Bureau of the Information Office of the State Council and press spokesman:

Good morning, ladies and gentlemen. Welcome to the press conference of the Information Office of the State Council. Today, we will continue to hold press conferences on the theme of completing the “14th Five-Year Plan” series with high quality. We are very happy to invite Minister of Commerce Mr. Wang Wentao to introduce the “14th Five-Year Plan” achievements in high-quality business development and answer everyone's concerns. Also attending today's press conference were Mr. Li Chenggang, International Trade Negotiator and Vice Minister of Commerce; Mr. Ling Ji, Vice Minister and Deputy Representative for International Trade Negotiations; and Mr. Sheng Qiuping, Vice Minister.

Next, let's first ask Mr. Wang Wentao to give an introduction.

Minister of Commerce Wang Wentao:

Thanks to the host! Hello, media friends! First of all, thank you for your interest and interest in business work. Today I am very happy to talk with you about the development of the “14th Five-Year Plan” business.

The five years of the “14th Five-Year Plan” can be said to be extremely unusual and extraordinary. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, we have earnestly implemented the various arrangements of the Central Committee's “14th Five-Year Plan”, based on the “three important” positions of business work, overcome difficulties, dare to fight well, pioneer and innovate, and solidly push forward the implementation of various goals and tasks. Overall, business development has withstood wave after wave of shocks and withstood the test of history. Major target indicators in various fields such as consumption, foreign trade, foreign investment, and foreign investment cooperation have progressed as expected. Major tasks have progressed smoothly, and high-quality business development has made remarkable progress, contributing to the successful conclusion of the 14th Five-Year Plan. Next, I will briefly review and introduce the main achievements of the “14th Five-Year Plan” business development from four aspects.

First, the role of consumer engines and stabilizers has been strengthened, and the advantages of a strong domestic market have been highlighted. The consumer market has steadily ranked second in the world. The total amount of social zero has grown at an average annual rate of 5.5% in the past four years, and is expected to exceed 50 trillion yuan this year. Service consumption maintained a relatively rapid growth rate, and the share of residents' service consumption expenditure increased by 3.5 percentage points to 46.1%. New types of consumption are booming, new business formats and new scenarios are rich and diverse, and people's beautiful lives are more figurative and vivid. The average annual contribution rate of consumption to economic growth has reached about 60%, and its role as the main engine continues to be prominent. China's strong domestic market advantage has improved markedly, and its vitality has increased markedly.

Second, the status of a major economic and trade power has been further consolidated, and high-quality development has achieved remarkable results. Foreign trade has withstood pressure and shown resilience. Trade in goods has steadily ranked first in the world, and the international market share for exports and imports has stabilized at over 14% and 10%. Trade in services has steadily ranked second in the world, surpassing 1 trillion US dollars for the first time last year. The quality of foreign investment has improved, and the cumulative absorption of foreign capital since the 14th Five-Year Plan has exceeded the expected target of 700 billion US dollars. The “Invest in China” gold sign continues to be polished, and the investment promotion structure is constantly being optimized. International cooperation in the production and supply chain is progressing in an orderly manner. The average annual growth rate of foreign investment exceeds 5%, ranking among the top three in the world. Overall, foreign-contracted projects are rising steadily. China has signed several memorandums of cooperation on the production supply chain with countries that have jointly built the “Belt and Road”.

Third, the pace of high-level opening-up to the outside world is accelerating, and the win-win situation of cooperation continues to expand. The negative list of entries on foreign investment access continues to shrink, all entry restrictions in the manufacturing sector have been “cleared”, and pilot opening of service industries such as value-added telecommunications and biotechnology are being carried out in an orderly manner. The 22 pilot free trade zones effectively play the role of a comprehensive pilot platform for reform and opening-up, actively connect with high-standard international economic and trade rules, and carry out first tests. Expand independent openness and unilateral openness in an orderly manner, and grant zero tariff treatment to 100% of the least developed countries and countries that have established diplomatic relations with Africa. Implement RCEP with high quality and actively promote the process of joining the CPTPP and DEPA. In 2024, the share of goods trade between China and free trade partners (including Hong Kong, Macao and Taiwan) reached 43%.

Fourth, the system for maintaining economic security has been continuously improved, and the ability to prevent risks and cope with shocks has improved markedly. Accelerate the construction of a foreign-related economic and trade legal system, promulgate the “Regulations on Export Control of Dual-Use Items”, and improve the export control system. Make good use of trade remedy tools and properly handle trade frictions. Complete foreign investment security reviews in accordance with regulations to protect a high level of openness. Negotiate and upgrade investment agreements with relevant countries, properly handle major overseas emergencies, and maintain the safety of overseas interests.

Looking back on the past five years, we have deeply experienced that the greater the difficulties and challenges, the more we can reflect the advantages of our country's system, huge market and complete industrial system, the more we can show the broad potential, strong resilience and strong vitality of our economy, and the more we can highlight the responsibilities of China's responsible power. In the next step, the Ministry of Commerce will actively adapt to changes in the situation, grasp strategic priorities and target directions, and actively plan and promote high-quality business development in the “15th Five-Year Plan” in accordance with the unified deployment of the central government.

I'll start with a brief opening. Next, my colleagues and I are ready to answer everyone's questions. Thank you!

Xiaoli Shou:

Thank you, Minister Wang Wentao, for the introduction. Now let's move on to the questioning session. Please inform your news agency before asking questions. Please start raising your hands to ask questions.

Reuters Reporter:

Considering the complex international economic and trade situation that emerged at the end of the “14th Five-Year Plan” and the relative dependence of the Chinese economy on exports, what key tasks will the Ministry of Commerce carry out during the “15th Five-Year Plan” period to stimulate domestic consumption. Can you give some examples?

Wang Wentao:

I'll answer that question. First of all, thank you to the Reuters reporter for the question. We still need to review the “14th Five-Year Plan”; let's look forward to the “15th Five-Year Plan.” Looking at the “14th Five-Year Plan”, let's put in a larger context. China's per capita GDP was in the range of 10,000 US dollars to 20,000 US dollars per capita during the “14th Five-Year Plan” period. At this time, our consumption demand is rapidly diverging, and the consumption structure will also change at an accelerated pace. During the “14th Five-Year Plan” period, we will also be in such a range, at least the previous section. At this time, there will be some new changes in consumption, and some new highlights will also be shown, which is in line with the phased characteristics and rules of our development. Over the past five years, the Ministry of Commerce has earnestly implemented the decisions and arrangements of the Party Central Committee, actively adapted to the new situation, and took more measures to promote consumption. We promoted the consumer market. In terms of scale, it was steady expansion, continuous optimization in terms of structure, and continuous release in terms of potential, strengthening the domestic cycle. We have sorted out the “14th Five-Year Plan” to see what to do with the “14th Five-Year Plan”. There are 4 changes and highlights during the “14th Five-Year Plan” period:

The first is “expansion”; the hyperscale market is larger. The position of the world's second-largest consumer market is more stable. Our total net worth of zero increased from 39.1 trillion yuan in 2020 to 48.3 trillion yuan in 2024 last year, with an average annual increase of 5.5%. We also compared it with the US. Judging from the absolute value, our social zero is equivalent to about 80% of the US; however, judging from the actual purchasing power, according to the data and algorithms given by the World Bank, our social zero has already surpassed the US, 1.6 times that of the US. Judging from this year's operation, the first half of this year has already passed, and Social Zero will definitely exceed 50 trillion yuan for the whole year. The scale of some segments maintains a “leading” position. We just said “big”. For example, our online retail sales have been number one in the world for 12 consecutive years, and our car sales are also number one in the world. The sales volume in household appliance segments such as air conditioners and washing machines is also number one in the world. What I want to say is that China has a population of 1.4 billion. Any product multiplied by 1.4 billion is definitely a very large market.

The second is “improving quality,” that is, improving quality. Quality consumption has reached thousands of households. People's lives have changed from “living a life” to “living a good life.” In terms of commodity consumption, we have promoted the introduction of a series of support policies, such as “trade-in” for consumer goods. This is not only a consumption stimulus policy, but more importantly, in exchange for smart and green consumption. Smart consumption and green consumption have improved everyone's quality of life. Since the promotion began in September last year, retail sales of household appliances per unit have continued to grow in double digits; in 2024, the number of NEVs has increased 5.4 times compared to 2020, and the penetration rate of our NEVs has already exceeded 50% in the first half of this year, reaching 50.2%. As of the first half of the year, trade-in led to sales of 2.9 trillion yuan, and about 400 million people received subsidies. I read reviews online saying this is the most popular and beneficial consumer policy. In terms of service consumption, during the “14th Five-Year Plan” period, China's service consumption entered a stage of rapid growth. In 2020-2024, our residents' service consumption expenses increased by an average of 9.6%. I remember telling media friends here that service consumption grew faster than commodity consumption. Everyone may have experienced it and take a look at your expenses. In fact, many of our service consumption has greatly surpassed commodity consumption in terms of household expenses, such as household expenses, fitness, travel, beauty, education, medical care, etc., which may have already exceeded your household's commodity consumption expenses. The contradiction at this stage of service consumption is mainly a partial shortage on the supply side, or more precisely, a shortage in the supply of quality services. We will work with relevant departments to adopt targeted measures to open up to the outside world and liberalize internally to resolve the shortage of quality services on the supply side. Open up “addition” to the outside world, expand pilot projects in medical and other fields, and introduce more high-quality services; liberalize “subtraction” domestically, promote the introduction of a “1+N” series of policies to support the high-quality development of service consumption, and carry out actions to improve the quality of service consumption and benefit the people. Focusing on segments such as health, pension, and housekeeping, subtraction means reducing some restrictive measures and enriching service supply. This area of work was also asked by a Reuters reporter. The “14th Five-Year Plan” and “15th Five-Year Plan” are continuous and will continue during the “15th Five-Year Plan” period.

The third is “renewal,” and there are many highlights of the new type of consumption. We implement retail innovation and upgrading projects to help traditional business formats “come out of the old”. For example, some places have “moved” museums and aquariums into shopping malls. Shopping, shopping, shopping, and family entertainment needs are “one-stop”. Shopping malls are also integrated across borders, integrating business, travel and culture into a “one-stop” service, and there are many continuous innovations. We support the innovation and development of time-honored brands. New Chinese clothing such as Hanfu and “horse mask dresses,” which are popular now, is popular, and domestic “trendy products” such as premium cultural and creative products and famous products from various regions are selling well at home and abroad. Our current domestic trendy products are of very good quality, and they also have many ideas, which are very popular among young people. We are also promoting the integration and innovation of new consumer formats, vigorously developing digital consumption and quality e-commerce, and cultivating new growth points such as the initial economy, “artificial intelligence+consumption”, and “IP+ consumption”. We have seen all kinds of robots in shopping malls or other service places. Some of the smart homes we just mentioned have entered the home. Our current trade-in has largely boosted smart home consumption. There are also new trends and trends such as the “trendy” millet economy and trendy blind boxes. Media reports also often say that the “Labubu phenomenon” is popular all over the world.

The fourth is “openness,” where domestic and foreign markets work together to promote each other. On the one hand, more high-quality products and services have entered China. We are cultivating international consumer center cities and building demonstration zones for import trade to promote innovation. In particular, we have continuously hosted the Expo and Consumer Fair. From 2021 to 2024, we imported a total of 7.4 trillion yuan of consumer goods. China's large market contributed greatly to global development. On the other hand, expanding the scope of unilaterally visa-free countries, guests from all walks of life come to China to travel and shop, and feel the charm of “Chinese shopping.” We have organized a “Buy in China” campaign. In particular, we have optimized the departure tax refund policy. The total cost for inbound tourists in 2024 was 94.2 billion US dollars. The increase was impressive, 77.8%, and the “China Tour” traffic was converted into an increase in “Chinese purchases.”

Looking ahead to the “15th Five-Year Plan,” the fundamentals of China's long-term economic growth have not changed, and the characteristics of the consumer market's high potential, strong resilience, and sufficient vitality have not changed. The question you are asking is what new stimulus policies are there in the “15th Five-Year Plan”. I think we will, on the basis of summarizing the “14th Five-Year Plan,” turn some good experiences and good practices into policies that are effective in the Chinese market and are very popular with ordinary people. At the same time, in the “15th Five-Year Plan”, we are also facing a very serious and complex situation. The international situation is unstable and uncertain. As mentioned before, our toolbox is rich, we will be fully prepared, and more importantly, we will introduce some targeted measures according to the times to further stimulate the development momentum of commodity consumption, unleash the potential for service consumption, amplify the driving effects of new types of consumption, expand domestic demand in all aspects, and strengthen the domestic cycle.

Thank you.

International Business Daily Reporter:

During the “14th Five-Year Plan” period, the external environment for global use of foreign capital tightened, and China's use of foreign capital fluctuated greatly. Can we achieve the expected goals of the “14th Five-Year Plan” as scheduled? What are the changes in the structure of the use of foreign capital? Thank you.

Wang Wentao:

I asked my colleague, Comrade Ling Ji, to answer this question.

Vice Minister of Commerce and Deputy Representative for International Trade Negotiations Ling Ji:

Thank you for your question. First, the answer to whether the expected goals can be achieved during the “14th Five-Year Plan” period you just mentioned is yes. Our expected goals for the actual use of foreign capital during the “14th Five-Year Plan” period have already been completed ahead of schedule. Let me briefly summarize the circumstances of attracting foreign investment during the “14th Five-Year Plan” period.

First, the expected goals have been successfully achieved. By the end of June this year, China's actual use of foreign capital during the “14th Five-Year Plan” period had reached a total of 708.73 billion US dollars, completing the investment target of 700 billion US dollars proposed in the business development plan six months ahead of schedule. At the same time, 229,000 new foreign-funded enterprises were set up, an increase of 25,000 over the “13th Five-Year Plan” period. Foreign-funded enterprises contributed 1/3 of the country's imports and exports, 1/4 of industrial value added and 1/7 of tax revenue, and created more than 30 million jobs, making important contributions to China's economic and social development.

Second, the quality of the use of foreign capital has been greatly improved. In 2024, high-tech industries attracted 34.6% of capital, an increase of 6 percentage points over 2020. Many multinational companies have set up regional headquarters and global R&D centers in China.

The third is to create a favorable environment for foreign investment. We summarize it as “three optimizations” and “one sound”. The first optimization is further optimization of the open environment. We have fully implemented the pre-entry national treatment and negative list management system for foreign investment. We have lifted restrictions on foreign investment in the manufacturing industry nationwide, and have also launched open pilot projects such as cloud computing, biotechnology, and wholly owned hospitals in some regions. More than 1,100 pilot projects have been carried out in 20 comprehensive pilot demonstration provinces and cities for expanding and opening up service industries, and policy documents for the high-quality development of national economic development zones have been issued. The second optimization is the optimization of the market environment. The implementation of the “24 Rules on Foreign Investment” and an action plan to stabilize foreign investment have been introduced. The implementation of various measures is in line with expectations. For example, the “24 Foreign Investment Rules” have a total of 59 initiatives. Up to now, all 42 have been implemented, and the rest have also made phased progress. In particular, in terms of government procurement, intellectual property protection, cross-border data flows, and fiscal and tax incentives, the relevant policy conditions have continued to be improved and optimized. The third optimization is the optimization of the legal policy environment. We have formulated, revised, and abolished more than 500 regulatory documents. A sound system means that the service guarantee system is more complete. All regions have set up special foreign-funded classes at all levels to continue to deepen normalized communication with foreign-funded enterprises and foreign business associations in China. A round-table system for foreign-funded enterprises has been established. Since 2023, the Ministry of Commerce has held more than 30 round-table meetings for foreign-funded enterprises, promoting the resolution of various claims of foreign-funded enterprises to reach more than 1,500.

Fourth, “Investing in China” has become a beautiful business card. We have held more than 60 key “Investing in China” events at home and abroad, and the “Investment Fair” on September 8 every year has become an iconic “Investing in China” exhibition. Many multinational companies say that China is an “ideal, safe, and promising” destination for multinational investment, and is an “oasis of certainty and a hot spot for investment.”

In March of this year, President Xi Jinping met with representatives of the international business community and delivered an important speech, conveying China's strongest voice in the era of resolutely promoting reform and opening-up at home and abroad, which greatly boosted confidence in foreign investment. To walk with China is to walk with opportunity. To invest in China is to invest in the future. We also hope that the vast majority of foreign-funded enterprises will achieve greater development on their own in the process of Chinese-style modernization. Thank you.

CCTV reporter at the general station:

I have a question about foreign trade. We all know that China's foreign trade development in recent years can be said to have handed over a very bright questionnaire. Despite the complex and changing external environment and high pressure, China's foreign trade has shown strong resilience and new momentum. We would like to ask, how does the Ministry of Commerce evaluate the development and prospects of China's foreign trade? Thank you.

Wang Wentao:

I'll answer that question. First of all, thank you for your question. Your question has already been answered in the next sentence; we just have strong resilience and momentum. Of course, I'll give some complementary answers in terms of resilience and kinetic energy.

As you mentioned earlier, we faced a lot of pressure during the “14th Five-Year Plan” period. The impact and pressure on foreign trade was indeed not small; at least, it can be described as “high winds and waves.” However, under the strong leadership of the Party Central Committee and the State Council, we have resolutely introduced policies to stabilize foreign trade many times, and all parties have made concerted efforts. Foreign trade has bucked the trend and achieved positive results in building a strong trade nation. It can be summed up in three words:

The first keyword is “big,” consolidating the status of a major trading power. Where is the big one? The scale of trade in goods has continuously crossed the two major levels of 5 trillion US dollars and 6 trillion US dollars. In 2024, it was 6.16 trillion US dollars, an increase of 32.4% over 2020 at the end of the 13th Five-Year Plan, ranking first in the world for 8 consecutive years. In terms of trade in services, the scale of trade in services surpassed 1 trillion US dollars for the first time, ranking second in the world. What is behind the “big” foreign trade actually represents an advantage of scale and a complete system advantage, so “big” is “strong” to some extent. It can be viewed from three dimensions: First, trade cooperation benefits the world. We are major trading partners in more than 150 countries and regions. We not only provide high-quality products and services to the world, but also guarantee the resilience and stability of the global industrial chain supply chain. At the same time, we also support the multilateral trading system and promote trade liberalization and facilitation through practical actions. Second, big market opportunities are shared globally. From an import perspective, imports of goods from mainland China and Hong Kong account for about 13.3% of the world's total imports in 2024. This is data released by the WTO. What is the share of US imports? It's 13.6%. In other words, mainland China plus Hong Kong is only 0.3 percentage points behind the US, so we are the second-largest import market in the world, almost comparable to US imports. At the same time, we are the main export destinations in nearly 80 countries and regions. Where do these countries export to? The main export destination is China. Of course, we have had a deficit in trade in services for a long time. Although we broke 1 trillion US dollars last year, we have a long-term deficit. The US is the largest source of the trade in services deficit. China is the country with America's largest goods trade deficit, and the US is also the country with China's largest trade in services deficit. This also shows that their advantages complement each other. However, we have taken the initiative to expand imports and successfully hosted the Expo for 7 consecutive years. This year is the 8th. We have also set up 43 demonstration zones for import trade to promote innovation, and have taken the initiative to implement zero tariffs on relevant countries. This is unique. As I mentioned in my opening remarks, there are zero tariffs on the least developed countries, and zero tariffs are applied to 53 countries that have established diplomatic relations with Africa through commercial agreements. China's big market has become a big market shared by the world, and it will surely continue to be a source of growth and vitality for the world economy. Our open doors have opened, not only to attract foreign investment, but also to expand imports. Third, foreign trade players are diversifying and growing. The number of foreign trade enterprises with import and export performance in 2024 is close to 700,000, and many world-renowned enterprises and “specialized, special and new” and “little giant” enterprises have emerged. The share of private enterprise exports increased from 56% at the end of the 13th Five-Year Plan to 64.8% last year, growing rapidly.

The second is “strength,” and the pace of building a strong trading nation is speeding up. The 20th National Congress of the Party proposed speeding up the construction of a strong trade nation. The “three pillars” of trade in goods, trade in services, and digital trade are all continuously consolidated. The first pillar is the optimization and upgrading of trade in goods. In particular, “gold content” and “new content” continued to rise. In 2024, high-tech products accounted for 18.2% of exports in goods trade, and now most exports are high-tech products. The potential for new forms of foreign trade continues to be unleashed. In 2024, cross-border e-commerce imports and exports amounted to 2.7 trillion yuan, an increase of 67% over 2020. The second pillar is innovation and upgrading of trade in services. For the first time, we implemented negative list management for cross-border trade in services. In 2024, the volume of trade in knowledge-intensive services increased by 38% compared to 2020. The third pillar is the innovative development of digital trade. We are improving digital trade support policies and building a number of national digital service export bases at a high level. In 2024, the import and export volume of digitally deliverable services increased by nearly 40% compared to 2020. We continue to organize national exhibitions. For example, the CIIE and the Canton Fair respectively mainly serve the import and export of trade in goods, trade fairs serve trade in services, and digital trade fairs serve digital trade. They play the role of these important exhibition platforms, support the “three pillars” of trade powers, and better serve the high-quality development of trade.

The third keyword is “toughness,” and foreign trade resilience and impact resistance have improved markedly. It is not a matter of ignorance of difficulties. The external environment has been “high and turbulent” in recent years, but China's foreign trade has “ridden the waves” and “forges ahead.” We are actively optimizing the international market layout, and our trading partners are more diverse. ASEAN has been my largest trading partner for 5 consecutive years, and trade volume increased 9.6% year on year in the first half of this year. In 2024, the share of trade between me and the countries that have jointly built the “Belt and Road” has already exceeded 50%. Our exports to the US fell from 17.4% in 2020 to 14.7% in 2024. Our exports to the US fell 9.9% in the first half of the year, but our overall exports grew by 7.2%, “one increase and one drop.” I said here during the two sessions, “the West is not bright, the East is bright,” and we have achieved diversification. We also properly deal with economic and trade frictions, use WTO rules, defend our legitimate rights and interests, and maintain trade security. In particular, we have found that foreign trade enterprises have very strong resilience, actively respond and actively seek change, accelerate product transformation and upgrading, especially increasing technological content, while striving to open up new markets and new channels, and innovating many new models. China's foreign trade supply chain has become more complete, flexible and efficient, and its ability to deal with risks and challenges is stronger. It can be said that it is more emboldened.

Looking ahead to the “15th Five-Year Plan”, we will make greater efforts to promote high-quality trade development and increase innovation momentum. We must not only export, but also step up efforts to expand imports, strengthen international cooperation, enhance trade resilience, and strive to construct an international trade pattern of open cooperation, common development, mutual benefit and win-win situation. Thank you.

Dazhong News Dazhong Daily Reporter:

The restructuring of the global economic governance system has been accelerated in recent years, and China's role is becoming more and more prominent. What work did we carry out during the “14th Five-Year Plan” period to participate in promoting WTO reform and promote the construction of a free trade zone network? What progress has been made?

Wang Wentao:

I would like to ask my colleague Li Chenggang to answer this question.

International Trade Negotiator and Vice Minister of Commerce Li Chenggang:

Thank you for your question. As mentioned in your question, in the five years of the “14th Five-Year Plan”, global governance did experience restructuring. Economic globalization faced a negative trend, and unilateralism and protectionism were on the rise. The international economic order and governance system are facing serious shocks. China is steadfastly maintaining the multilateral trading system and expanding the global network of high-standard free trade zones. We are promoting the “two wheels” of multilateral cooperation and regional cooperation to revolve together.

At the multilateral level, we firmly uphold the multilateral trading system, participate fully and deeply in WTO reform, and safeguard the authority of the WTO. Faced with the problem of the poor functioning of the WTO, we actively promoted the 12th and 13th WTO Ministerial Conferences to achieve many practical results. We have made efforts to enhance the effectiveness of the WTO and have led the way in reaching high-level economic and trade agreements such as investment facilitation agreements and e-commerce agreements. We are also deeply involved in discussions on topics such as the trade environment, development, and supply chain stability to push international economic and trade rules to keep pace with the times. We fulfill our promises, demonstrate the responsibility of a major power, earnestly fulfill our WTO obligations, strengthen trade policy compliance, and help build a world-class business environment. We have completed bilateral negotiations with Uzbekistan, Azerbaijan, and Ethiopia to join the WTO to help developing members integrate into the multilateral trading system. At the same time, we are also constructively participating in cooperation in multilateral mechanisms such as G20, BRICS, and APEC, and have always placed development at the center of the international economic and trade agenda. We are promoting the official launch of the BRICS Special Economic Zone China Cooperation Center in March this year. This is also a concrete measure to implement the spirit of General Secretary Xi Jinping's important speech.

At the regional level, we are expanding our network of high-standard free trade zones to the world. First, our circle of friends is getting bigger and bigger. We are promoting the signing and entry into force of the Regional Comprehensive Economic Partnership Agreement (RCEP), making it the largest free trade zone in the world with the largest economic and trade scale and covering the largest population. We completed negotiations on the 3.0 version of the China-ASEAN Free Trade Area this year. We have signed economic partnership framework agreements with 31 African countries and signed 8 bilateral free trade agreements or upgrade protocols. Second, the level of openness is getting higher and higher. We have officially applied to join high-standard agreements such as the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Digital Economy Partnership Agreement (DEPA), exchange tariffs on most products with free trade partners, and push trade in services and investment negotiations into the negative list era. Rules in new fields such as the digital economy and green economy have become the “standard” in our negotiations. Third, there are more and more dividends. Last year, our exports to free trade partners reached 10.06 trillion yuan, an increase of 7.6% over the previous year. Our imports from free trade partners reached 9.01 trillion yuan, up 4.1% year on year, all higher than the overall import and export growth rate during the same period. It can be said that high-level free trade arrangements have achieved win-win cooperation and common development. Currently, whether multilateral or regional, the appeal of China's initiatives has increased markedly, the influence of China's ideas has expanded markedly, and the cohesiveness of China's plans has increased markedly.

Thank you.

First Financial Correspondent:

We have a feeling. After the “14th Five-Year Plan” development, whether in cities or rural areas, online or offline, shopping is now more convenient and faster, and the entire urban and rural commerce circulation system has changed greatly. What steps has the Ministry of Commerce taken to promote the construction of a modern circulation system during this period? What results have been achieved? Thank you.

Wang Wentao:

I would like to ask my colleague Sheng Qiuping to answer this question.

Vice Minister of Commerce Sheng Qiuping:

Thank you for your question. Circulation links production and consumption, domestic and foreign trade, and online and offline. It is the “backbone” and “lifeblood” of the economy, and is particularly important for large-scale economies like China. General Secretary Xi Jinping stressed that in constructing a new development pattern, the construction of a modern circulation system must be taken as an important strategic task. Since the 14th Five-Year Plan, we have achieved positive results in the construction of a modern trade circulation system with the modern supply chain as the lead and high-quality development of the wholesale and retail industry as the main line.

Overall, it is reflected in “one rise and one drop”: “Rise” means that distributors such as wholesale and retail grew bigger and stronger. In 2024, China's wholesale and retail industry added value of 13.8 trillion yuan, second only to the manufacturing industry. It increased 40% compared to the end of the 13th Five-Year Plan, accounting for more than 1/10 of GDP, reaching a record high and employing 135 million people. In the first half of this year, the value added of the wholesale and retail industry increased by 5.9% year-on-year, and still maintained a relatively rapid growth trend. The “drop” is the cost of social logistics. The total cost of social logistics fell to 14.1% of GDP from 14.7% five years ago, and the integrated logistics costs of key enterprises were reduced by 10%. Trade circulation has become an important pillar of China's economic and social development, providing strong support for constructing a new development pattern.

If you open it up, you can summarize it with “four more”:

First, distribution facilities are more convenient for the benefit of the people. In rural areas, we have deepened the construction of the county commercial system and carried out the renovation and upgrading of “thousands of stores”. In total, 155,000 commercial outlets of various types have been renovated in counties and villages. More than 95% of farmers in administrative villages can enjoy direct express delivery. In the city, we have built 35 national model pedestrian streets and business districts, and 5,510 one-quarter convenient living circles to serve more than 125 million residents. More and more overseas tourists are amazed by the convenience and happiness of Chinese cities.

Second, the distribution network is better and more complete. The first is to improve “muscles”. We are piloting modern trade circulation systems in 40 cities, and the “capillaries” of commercial circulation are further tightened. The second is to make up for shortcomings and vigorously develop cold chain logistics. Currently, the total amount of cold storage in the country has reached 253 million cubic meters, and the number of refrigerated trucks has reached 495,000, up 42.9% and 80% respectively from the end of the 13th Five-Year Plan. From the “first kilometer” of the fields to the “last mile” of people's vegetable baskets, it is more smooth.

Third, distributors are becoming more diverse and growing. The pattern of small enterprises being “all over the world” and large enterprises “standing above the ground” was initially formed. First, there are more numbers. There are more than 10 million legal entities in the wholesale and retail industry, and nearly 45 million individual businesses, accounting for over 45%. Second, there is more vitality. Traditional business formats such as shopping malls and department stores are being transformed at an accelerated pace, new business formats and models such as member supermarkets and buyer stores are constantly emerging, and trade circulation has become one of the most innovative fields. Third, it is stronger. In 2024, China's 17 distribution companies will be listed in the world's top 500, with average revenue exceeding 90 billion US dollars.

Fourth, circulation operations are smarter and more efficient. We are vigorously promoting the “three modernizations”: the first is digitalization, using technologies such as big data, artificial intelligence, and the Internet of Things to carry out “digital intelligence” transformation and upgrading of the entire trade circulation chain to improve the accuracy of matching supply and demand. The second is standardization. The recycling rate of standard pallets increased from 32.4% to 37.8%, driving enterprises to improve cargo turnover efficiency and reduce logistics costs. The third is greening, cultivating 32 pilot cities for renewable resource recycling systems and 10 pilot cities for the circulation of used commodities. A green and low-carbon lifestyle is deeply rooted in the hearts of the people.

Looking ahead to the “15th Five-Year Plan”, we will continue to work hard, using planning as the lead, to accelerate the construction of a large-scale and better-quality modern trade circulation system, further promote the high-quality development of the wholesale and retail industry, further reduce logistics costs for the whole society, and make greater contributions to unblocking the national economic cycle and constructing a new development pattern.

Thank you.

Ministry of Commerce talks about Sino-US economic and trade relations: artificial “decoupling” is inseparable

The Information Office of the State Council held a press conference at 10 a.m. this morning on the theme of “Completing the 14th Five-Year Plan with High Quality” series. Minister of Commerce Wang Wentao and others were invited to introduce the “14th Five-Year Plan” achievements in high-quality business development and answer questions from reporters.

Wang Wentao talks about Sino-US economic and trade relations: artificial “decoupling” is inseparable

Minister of Commerce Wang Wentao said that after experiencing ups and downs in Sino-US economic and trade relations, the two sides are still important economic and trade partners for each other. Since 2018, the US side's unilateralism and protectionism have been on the rise, continuously provoking economic and trade frictions. A series of acts have seriously impacted and interfered with normal economic and trade cooperation between China and the US. Although the respective shares of trade between China and the US have declined, overall bilateral trade has remained stable. In 2024, the volume of trade in goods and services between China and the US reached US$688.3 billion and US$155.8 billion, up 18% and 34.7% respectively from 2017. Facts have proved that Sino-US economic and trade cooperation has a solid economic foundation and a foundation of public opinion, and artificial “decoupling” is inseparable.

The Ministry of Commerce's four sentences summarize recent Sino-US economic and trade relations

Since the US side provoked economic and trade frictions in 2018, the Sino-US economic and trade relationship can be described as having ups and downs, and there have been quite a few landmark events. In the first sentence, the economic and trade relationship between China and the US has gone through ups and downs, and the two sides are still important economic and trade partners for each other. The second sentence is that the essence of Sino-US economic and trade relations is mutually beneficial and win-win; cooperation is the only correct path. The third sentence is that Sino-US economic and trade cooperation will inevitably cause differences and friction. Dialogue and consultation is the best option for resolving issues. In the fourth sentence, China's position is consistent and resolutely defends national interests and international fairness and justice.

China's total social zero is expected to exceed 50 trillion yuan this year

China's consumer market has steadily ranked second in the world. Over the past four years, total social zero has grown at an average annual rate of 5.5%, and is expected to exceed 50 trillion yuan this year. China's service consumption has maintained a relatively rapid growth rate. The share of residents' service consumption expenditure increased by 3.5 percentage points to 46.1%.

The cumulative absorption of foreign capital since the 14th Five-Year Plan has exceeded 700 billion US dollars

Since the 14th Five-Year Plan, China's foreign trade has withstood pressure and shown resilience. Trade in goods has steadily ranked first in the world, and the international market share for exports and imports has stabilized at over 14% and 10%. Trade in services has steadily ranked second in the world in terms of scale. The quality of foreign investment has improved, and the cumulative absorption of foreign capital since the 14th Five-Year Plan has exceeded the expected target of 700 billion US dollars.

The average annual growth rate of China's foreign investment exceeds 5%, and the total volume is stable in the top three in the world

Since the “14th Five-Year Plan”, international cooperation in China's production and supply chain has progressed in an orderly manner. The average annual growth rate of foreign investment is over 5%, the total volume scale has steadily ranked among the top three in the world. Overall, there has been a steady rise in foreign-contracted projects, and a number of memorandums of cooperation have been signed with countries that have jointly built the “Belt and Road”.

Actively adapt to new situations and changes and actively plan high-quality business development in the “15th Five-Year Plan”

The greater the difficulties and challenges, the more it can reflect the country's institutional advantages, huge market and complete industrial system, the more it can show the broad potential, strong resilience and strong vitality of the Chinese economy, and the more it can also highlight the responsibility of China's responsible power. Wang Wentao said that in the next step, the Ministry of Commerce will actively adapt to the new situation and changes in accordance with the unified deployment, grasp strategic priorities and target directions, and actively plan and promote high-quality business development during the “15th Five-Year Plan” period.

China's social zero actual purchasing power has surpassed that of the US 1.6 times that of the US

From 2021 to 2024, judging from the absolute value, the absolute value of China's social zero is already equivalent to about 80% of the US; judging from the actual purchasing power, according to the data and algorithms given by the World Bank, China's social zero has surpassed the US, 1.6 times that of the US.

In the first half of the year, trade-in led to sales exceeding 2.9 trillion yuan

As of the first half of the year, trade-in had driven sales of more than 2.9 trillion yuan, and about 400 million people received subsidies.

Restrictive measures in the field of service consumption will continue to be reduced during the “15th Five-Year Plan” period

Restrictive measures in the field of service consumption will continue to be reduced during the “15th Five-Year Plan” period. Wang Wentao pointed out that the Ministry of Commerce is addressing the shortage of quality supply-side services through “opening up to the outside world” and “opening up internally.” “Opening up to the outside world” means making additions, expanding pilot projects in medical and other fields, and introducing more high-quality services; “opening up internally” means making cuts, promoting the introduction of a “1+N” series of policies to support the high-quality development of service consumption, carrying out actions to improve the quality of service consumption and benefit the people, reducing restrictive measures and enriching service supply around segments such as health, pension, and housekeeping. Work in this area will continue to advance during the “15th Five-Year Plan” period.

The Ministry of Commerce responds to the idea of boosting consumption in the next phase: it will propose new coping policies according to the times and circumstances

Minister of Commerce Wang Wentao said in response to “what other consumer stimulus policies are there during the 15th Five-Year Plan period,” that during the “15th Five-Year Plan” period, the Ministry of Commerce will turn some good experiences, practices, and good policies that are effective in the Chinese market and are very popular with consumers into normal and long-term effects. At the same time, in response to the serious and complex situation and the instability and uncertainty of international changes, it will also propose some new coping policies according to the times and circumstances. “Like I said before, our toolbox is rich, and we will be fully prepared.” Wang Wentao said that in the future, targeted policies will be introduced to further stimulate the momentum of consumption development, unleash the potential for service consumption, amplify the driving effects of emerging consumption, expand domestic demand in all aspects, and strengthen the domestic cycle.

Positive results have been achieved in building a strong trading nation

During the “14th Five-Year Plan” period, China's foreign trade achieved contrarian growth, and positive results were achieved in building a strong trade country. It can be summed up with three keywords. “Big”: The position of a major trading power is stable. The scale of trade in goods increased by 32.4% in 2024 compared to 2020 at the end of the 13th Five-Year Plan, ranking first in the world for 8 consecutive years. “Strong”: The pace of building a strong trading nation is accelerating. In 2024, the share of exports of high-tech products reached 18.2%, the trade volume of knowledge-intensive services increased by 38% compared to 2020, and the import and export volume of digitally deliverable services increased by nearly 40% over the same period compared to 2020. “Resilience”: Foreign trade resilience and impact resistance have been significantly enhanced. China's foreign trade supply chain is becoming more complete, flexible and efficient, and more capable and emboldened to deal with risks and challenges.

Minister of Commerce Wang Wentao: I met with Huang Renxun yesterday

Minister of Commerce Wang Wentao said at the press conference of the State Information Office that yesterday he met with Nvidia CEO Huang Renxun at the Ministry of Commerce.

This article was selected from “China Network” and transferred from “Financial Association”; Zhitong Finance Editor: Liu Xuan.