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Regular Press Conference of the Ministry of Commerce (May 9, 2019)

Gao Feng: Dear friends from the press, good afternoon. Welcome to the regular press conference of the Ministry of Commerce. Firstly, I have four pieces of information to release to you.

1.Foreign Trade situation across the country in January-April 2019

According to the statistics of the General Administration of Customs, China's total import and export volume reached 9.51 trillion yuan in January-April of 2019, up 4.3% year on year. Among these, the export volume reached 5.06 trillion yuan, up 5.7%, and the import volume reached 4.45 trillion yuan, up 2.9%. The surplus was 618.17 billion yuan, increasing by 31.8%. The main features are as follows.

First, the layout of the international market was diversified, and the import and export driving role of countries along the “Belt and Road” routes was significant. From the perspective of countries, China’s exports to the EU, ASEAN, South Korea and Russia increased by 14.2%, 13.4%, 7.7% and 9.1% respectively. The level of trade connectivity with the countries along the “Belt and Road” routes continued to be enhanced. The growth rate of import and export was 4.8 percentage points higher than the overall growth rate, accounting for 28.7%, up 1.3 percentage points. During the Canton Fair this spring, the proportion of entrepreneurs from and transactions with the “Belt and Road” countries reached 45% and 35.8% respectively.

Second, the vitality of private enterprises entities continued to be improved, and the proportion of exports has continuously increased. Private enterprises continued to be the largest operation entity of export, with exports reaching 2.53 trillion yuan, up 13.1% and taking up 49.9%, up 3.2 percentage points. The export of foreign-invested enterprises reached 2.03 trillion yuan, down 0.1%, and that of state-owned enterprises reached 501.47 billion yuan, down 4%.

Third, the commodity structure continued to be upgraded, and the exports of mechanic and electronic and labor-intensive products increased. The export of mechanic and electronic products was 2.97 trillion yuan, up 4.5%, accounting for 58.6% of the total export value. Among these, the exports of integrated circuits, and motors and generators increased by 27% and 7.8% respectively. Seven major labor-intensive products maintained competitive advantages, with an export of 924.54 billion yuan, up 5.8%. Among these, the exports of toys, plastic products and furniture increased by 30.9%, 17.6% and 9.3% respectively.

Fourth, the trade model continued to be optimized, and general trade maintained strong resilience. The export of general trade was 2.96 trillion yuan, up 10.2%, accounting for 58.6%, up 2.4 percentage points. The export of processing trade was 1.51 trillion yuan, down 1.8%.

Fifth, domestic economy ran steadily and pulled up the growth rate of import. In the first quarter, China's total retail sales of consumer goods increased by 8.3% year on year, and the purchasing managers' index (PMI) was in the expansion range for two consecutive months. From January to April, the growth rate of import was 2.6 percentage points higher than that of the first quarter. The imports of bulk commodities such as crude oil, refined oil and natural gas increased by 8.9%, 8.8% and 16.4% respectively. The total imports of ten major commodities such as crude oil, iron ore, and natural gas reached 1.14 trillion yuan, up 9.4% year on year, driving import growth by 2.3 percentage points.

Since this year, the implementation of a series of policy and measures such as the tax and fee reduction has been accelerated, and the national economy has generally maintained a stable performance and a good start. Although some international organizations have lowered their expectations for global trade growth, unilateralism and trade protectionism have been rising, and China's exports are facing certain downward pressure. However, China's foreign trade has maintained a steady development momentum in general. Next, the Ministry of Commerce will work with local authorities and relevant departments, fully implement every stabilizing foreign trade deployment of the CPC Central Committee and the State Council, continuously improve the level of trade facilitation, help enterprises actively explore diversified markets, create a good external environment for enterprises and improve the quality of China's foreign trade while ensuring stability.

2.About the online retail market across the country in the first quarter this year

In the first quarter of this year, the online retail saw a good start and continued to maintain rapid growth. The online retail sales across the country reached 2.24 trillion yuan, up 15.3% year on year. Among these, the online retail sales of physical goods was 1.78 trillion yuan, up 21% year on year, and the contribution rate to the growth of total retail sales of social consumer goods reached 41.2%.

In the first quarter, the national online retail market presented the following features:

First, the development potential of rural e-commerce was continuously released. According to the monitor of the big business data, the national rural network retail sales reached 357 billion yuan, with an increase of 19.5% year on year, higher than the national growth rate of 4.2 percentage points. Among these, Tibet, Xinjiang, Hainan and other places have a faster growth rate, all exceeding 25%. The retail sales of agricultural products nationwide reached 93.2 billion yuan, with an increase of 19.8% year on year. Among these, sales of milk, grain, oil and tea products grew at a faster rate, all exceeding 28%.

Second, cross-border e-commerce grew rapidly. Business big data monitoring of key e-commerce retail import platforms shows that cross-border e-commerce retail import has increased by more than 40% year on year. From the perspective of source, the import volume from Japan, the US and South Korea ranked the top three, accounting for 18%, 13.3%, and 11.6% respectively. In terms of category, the imports of cosmetics, grain and oil food and daily necessities ranked the top three, accounting for 36.2%, 24.3% and 10.0% respectively.

Third, the central region grew relatively fast. According to the monitor of the big business data, the growth rate of online retail sales in the eastern, central, western and northeast regions in the first quarter was 16.4%, 32.4%, 15.3% and 17.4% respectively; the sales in the country were 82.9%, 9.7%, 6.0% and 1.4% respectively.

Fourth, quality consumption was highly favored. Consumers pay more attention to "cost performance", and the sales of people-friendly brands and high-quality goods were growing at a faster rate. Among these, cosmetics, pet supplies and etc. grew rapidly, with a year-on-year growth rate of more than 50%; domestic mobile phone and digital products, time-honored health care products and etc. also maintained relatively fast growth rate.

It is expected that the online retail market will continue to grow rapidly this year, and will play a greater role and make greater contributions to promoting consumption upgrading, helping poverty alleviation, improving opening up, and serving green development.

3. Information on the upcoming second local cooperation forum jointly held by China and Kazakhstan

According to the agreement between China and Kazakhstan, MOFCOM and the Ministry of National Economy of Kazakhstan will jointly hold the second China-Kazakhstan Local Cooperation Forum in Almaty, Kazakhstan on May 15.

Kazakhstan is the first place to promote the Belt and Road Initiative and an important pivot country. It is also a demonstration area for international capacity cooperation and matchmaking. In recent years, China-Kazakhstan relations have developed steadily and mutually beneficial cooperation in various fields has been further advanced. In particular, the local cooperation between the two countries is highly complementary. It has great potential to tap the advantages of their own location and resource, deepen technical exchanges and financing. It is not only a new force to push China-Kazakhstan comprehensive strategic partnership to a new level, but also a force to promote high quality development on the basis of the US$20 bilateral trade.

In order to support the mutual learning and support between various regions of China and Kazakhstan in the fields of economy, trade, science and technology, humanities, education, tourism and other fields, and continue to expand new areas of cooperation, MOFCOM and the Ministry of National Economy of Kazakhstan held the first China-Kazakhstan Local Cooperation Forum in September 2017 in Nanning, China, which achieved good results.

The theme of the second China-Kazakhstan Local Cooperation Forum will be “deep connecting for common development”, and about 400 representatives from relevant provincial and state governments and business circles will attend the forum. They will exchange ideas on constructing the Belt and Road cooperation, capacity and investment cooperation, agricultural cooperation, logistics and e-commerce cooperation, and explore new opportunities for cooperation.

4. Relevant information about the WTO Informal Ministerial Meeting

China plans to hold an informal WTO ministerial meeting in Shanghai in early November this year to exchange views and build consensuses of all sides on supporting the multilateral trading system and promoting the WTO reform process. China will continue to firmly uphold the multilateral trading system, support the necessary reforms of the WTO, safeguard the authority and effectiveness of the multilateral trading system, and contribute to building an open world economy and a human community with a shared future.

That’s all the information I’d like to share with you. Now I’d like to answer your questions. Please ask questions now.

CGTN: US President Trump said on Sunday that tariffs on US$200 billion of Chinese goods will be raised from 10% to 25% as trade talks between China and the US progressed too slowly. What are China’s comments? What countermeasures will China take if the US acts on the tariffs?

Gao Feng: Some friends from Chinese and foreign press have told me recently that they have a hard time following the trade talks between China and the US as the negotiations grow intense and gather pace. Indeed, Chinese and American trade and economic teams have maintained close contact for the past few months and have held 10 rounds of high-level negotiations by far. Both teams have put in a great deal of efforts to make significant progress in negotiations.

China’s position and attitude has always been consistent and clear-cut. We oppose raising tariffs unilaterally. No one emerges as a winner in a trade war. It is not in the interest of China or the United States or the world. We hope the US can meet China half way, address issues through dialogues instead of unilateral measures, and reach a mutually beneficial deal on the basis of mutual respect and equal footing. In the meantime, China is fully prepared and has the determination and capability of safeguarding its legitimate rights and interests. Thank you.

Xinhua News Agency: According to the latest news from MOFCOM, Vice Premier Liu He will lead a delegation to visit the US for trade consultations between 9th and 10th. Before that, the US announced to raise tariffs on US$200 billion of Chinese goods from 10% to 25% on Friday. What do you make of Chinese delegation’s visit to the US against such a backdrop? Will the visit prevent the US from raising tariffs? If the tariffs take effect, are we fully prepared?

Gao Feng: That Vice Premier Liu He heads a delegation to visit the US for the 11th round of high-level trade consultation demonstrates a sense of responsibility and sincerity of China in advancing the negotiations. We hope that both sides can meet each other halfway, accommodate each other’s concerns, and resolve the existing issues through cooperation and consultation. Meanwhile, China has prepared for all kinds of possible scenarios. Thank you.

Phoenix Satellite TV: What is the outcome of the 10th high-level consultations held last week in Beijing? In such circumstances, what expectations does China hold for the coming round?

Gao Feng: From April 30th to May 1st, China and the US held the 10th round of high-level negotiations in Beijing. The two sides exchanged in-depth views on the text and a multitude of issues of concerns and agreed to continue with close interactions.

As regards the 11th round of consultations, we hope both sides can pull in the same direction, take care of each other’s core concerns, and address issues in a rational and practical manner.

Reuters: What will China do when the tariff hikes on US$200 billion of Chinese goods take effect on Monday? If the US raises tariffs, will China impose tariffs on US$60 billion of American goods as said last September, or will China impose new tariffs? Will China consider imposing tariffs on imported American services as “a retaliatory measure”?

Gao Feng: We have already issued a statement on what you just asked. Escalating trade frictions serves no interest of Chinese and American people or beyond. We feel sorry for that. If the US tariffs go into effect, China will have to take necessary countermeasures. You are welcome to follow MOFCOM’s website if there is any further step. Thank you.

Bloomberg: Will Vice Premier Liu He meet President Trump during his visit to the US? When will Vice Premier return to China? Will China give more concessions in the negotiations, including revising relevant laws? We also want to follow up on Reuters’ question about concrete countermeasures China will take. Could you brief us on that?

Gao Feng: Let me answer your questions together. News from different channels abounds recently. There is no shortage of labels on China thanks to the US, such as backtracking or breaking promises. China is also said to “promise” many things. China stands by its word. This has never changed. It is for all to see that for more than a year, we have demonstrated sincerity and good faith in progressing negotiations. Negotiation is about exchanging view, solving problems and reaching consensus. It is normal to have differences.

As regards specifics about the 11th round of consultations, we will let you know in a timely manner if there is anything new.

I’ve already answered the question about countermeasures. Please follow our websites for more information. Thank you.

CCTV: The US once said that the negotiations on 94.5% of the issues have been concluded. What are the ultimate differences? The US also once suggested that the 11th round of negotiations was the ultimatum. Does it mean that this visit to Washington DC will decide whether there is a deal or not? Are you optimistic about it?

Gao Feng: Making a deal calls for joint efforts on both sides. China has always been committed to the negotiations with the utmost sincerity in the hope of reaching a mutually beneficial deal on the basis of equal footing and mutual respect. China is ready to work together with the US to address issues through candid and thorough communications on the discrepancies. Thank you.

CNBC: President Trump announced on Sunday that the US will impose 25% of tariffs on Chinese goods worth US$200 billion, which means almost all Chinese exports to the US are subject to tariffs. What’s MOFCOM’s response? What impacts will those tariffs have on Chinese economy?

Gao Feng: We have stressed on many occasions that raising tariffs is not the right way to solve problems. It will not only affect Chinese enterprises, but also American business and consumers and the world economy. China’s position and attitude has always been consistent and clear. Cooperation is the best option for China and the US. Consultation should be the right way to solve problems. We hope the US and China can work together, respect each other and address problems through cooperation and consultation. Thank you.

Caixin: Some people argue that China has to enter into negotiations even with a gun held to its head, which is inconsistent with China’s previous standing. What’s your view on that?

Gao Feng: The whole world wants to see China and the US resolve trade issues properly. While the US threatens more tariffs on the way, China bears in mind the big picture and sticks to its plan to visit the US for the 11th round of high-level negotiations. This fully demonstrates China’s sincerity and good faith in moving the negotiations forward. We hope the US to work together with China to make new progress in the consultations.

China always believes that the trade talks with the US should be conducted on the basis of mutual respect, equal footing and mutual benefits. Both sides should accommodate each other’s concerns and strive to find a way to dissolve frictions. China’s position and attitude has been the same. China yields to no pressure and has the resolve and capability to defend our own interests. Thank you.

Shenzhen TV: The US-China Economy and Security Review Commission published a report recently, listing Chinese companies’ methods for acquiring valuable technologies, IP and knowhow from US firms and claiming that many approaches Chinese companies take involve coercive or covert means. The Commission holds that the said actions usually received backing or assistance from the Chinese government. What’s China’s comment?

Gao Feng: China has for many times rebuked such irrational accusations based on no facts. The Chinese government encourages and respects technological exchanges and cooperation between Chinese and foreign enterprises based on market principles. China has never forced technology transfer. There is no provision in Chinese law or regulation that requires foreign enterprises to transfer technology to their Chinese partners. The new Foreign Investment Law stipulates clearly that administrative authorities and their personnel shall not force technology transfer through administrative means, thus providing stronger legal guarantee for foreign enterprises. Thank you.

CBN TV: Will China send a smaller delegation to the US for consultation on May 9th and 10th than originally planned? Will it include senior representatives from Chinese companies?

Gao Feng: China has announced that Vice Premier Liu He will head a delegation to Washing D.C. for the 11th High-level Economic and Trade Consultation on May 9th and 10th. We’ll share with you in a timely manner if there’s further information.

Regarding the size and composition of the delegation, it depends on the negotiations. Adjustments are made as needed for every trip. Thank you.

HKTV: President Trump has made some remarks in the past few days, accusing China of breaking the deal. Can China confirm this? This morning, American Soybean Association urged China and the US to reach a deal as quickly as possible and eliminate additional tariffs. The industries seem to have different attitudes than the president. What is China’s response?

Gao Feng: Regarding your first question, I’ve already answered it. China honors its word and keeps its promises. This has never changed.

As for your second question, tariff hikes are not the right solution. They affect not only Chinese businesses, but also US companies, consumers and the world economy. It is hoped that the US can work with China towards the same direction and resolve issues through cooperation and consultation on the basis of mutual respect. Thank you.

Yicai: From May 13th to 15th Geneva time, WTO Members will start negotiations on new e-commerce rules. The EU submitted a proposal on 3rd. Has China prepared a proposal? When will it be submitted? What are the main areas of interests? Will it concern the cross-border flow of big data?

Gao Feng: At the Informal WTO Ministerial Meeting on E-commerce held in Davos on Jan. 25th this year, 76 WTO Members, including China and the EU, signed a Joint Declaration on E-commerce, confirming the intention to launch the talks of trade-related e-commerce issues on the basis of current WTO agreements and framework. On Apr. 24th, China circulated its proposal for the first round through the WTO. To my understanding, ten Members, including China, the EU, Japan, the US, Brazil and Singapore, have already presented their proposals.

China believes that negotiations should be based on current WTO agreements and framework, highlight the development agenda, respect Members’ supervisory rights and the reasonable requests of developing Members and focus their discussion on Internet-enabled cross-border trade in goods and related services such as logistics and payment to push for the establishment of regulated, easy, secure and credible e-commerce transaction and market environment.

China would like to work with WTO Members to deeply engage in the negotiating process and do our bit for the healthy, orderly and sustainable development of global e-commerce, increased consumer wellbeing around the world and continuous world economic growth. Thank you.

CNS: Could you brief us on domestic consumption over the May Day mini-holiday?

Gao Feng: The May Day mini-holiday this year saw steady operation of consumption markets across the country with rapid sales growth, improved quality of goods and services consumption, and abundant supplies and stable prices of daily necessities.

First, consumption of goods upgraded. Sales of fashion wear, smart appliances, new digital devices, green and energy-saving products and outdoor sports goods boomed, with emerging business types such as shopping malls, outlets and online retail experiencing rapid sales growth. Consumption increased in both big and medium-sized cities. For instance, commerce businesses on Beijing’s watch list reported sales revenues of RMB 3.22 billion, up by 6.5% year-on-year in daily average terms. Shanghai, Shaanxi and Sichuan all grew by over 10%.

Second, services consumption flourished. Tourism, leisure, catering, culture and sports, among other services continued to thrive. According to the estimates of the Ministry of Culture and Tourism, over 195 million domestic tourists travelled in China during the mini-holiday, up by 13.7% in comparable terms; tourism revenues stood at RMB 117.67 billion, up by 16.1% year-on-year. Popular and time-honored specialty restaurants were wooed, while catering in places of interest of tourism cities became hotspots. For example, the revenues of catering businesses on Xi’an’s watch list were up by 17.1% year-on-year. Chengdu’s 20 brand caterers reported revenues growth of 11% year-on-year.

Third, market supplies were abundant and stable in price. Daily necessities were in abundant supply across the country with rich varieties and stable prices overall. The prices of grains and cooking oil at MOFCOM-monitored wholesale farmers’ market rose slightly amidst stability. More specifically, the price of pork rose by 0.1% on the previous week; the prices of beef and lamb were down by 0.2% and 0.1%; the price of eggs was up by 1.5%; and the average price of 30 kinds of vegetables was up by 0.5% on the pre-holiday week. Thank you.

CNR: Recently, the State Council printed and issued the Circular on the Replication and Dissemination of the 5th Batch of Pilot Free Trade Zone Reform Experience, which followed President Xi Jinping’s announcement of a new batch of pilot FTZs at the 2nd Belt and Road Forum for International Cooperation. How many pilot FTZs are there in the 5th batch? Where will they be located? What are the selection criteria? Could you brief us on the progress? Thank you.

Gao Feng: A few days ago, the State Council printed and circulated a notice on replicating and disseminating the 5th batch of 18 pieces of pilot FTZ reform experience nationwide or in designated areas, covering investment, trade and mid- and post-event regulation with emphasis on transport, customs regulation and tax processing, including online processing of interregional taxation, the China-Europe freight train container model and the smart ship selection mechanism for security check, etc.

For example, through the pilot customs service appointment platform of Fujian Pilot FTZ, customs inspection from preparation to completion now takes half the time it used to. Since the launch of the pilot, the platform has handled nearly 140,000 appointments and helped local governments save RMB 48.6 million in inspection fees, significantly reducing operation costs. The Chengdu Section of the Sichuan Pilot FTZ piloted one-trip notary service. Since its launch, the pilot has served over 80,000 people and cancelled RMB 1.2 million in notary fees. Chengdu Notary Public Office was named a national IPR notary service model by four ministries, including the Ministry of Science and Technology.

The replication and dissemination of such experience will further optimize the business environment, unleash market vitality and raise the satisfaction of companies and the public, promoting the sharing and inclusiveness of reform dividends and open-up results.

Currently, the pilot FTZs have in total introduced 171 pieces of reform experience to the rest of the country, playing a full role as testing grounds in comprehensively deepening the reform. Moving forward, following the plan of the CPC Central and the State Council, MOFCOM will continue to encourage the FTZs to engage in differential explorations according to strategic position and local characteristics, summarize and evaluate innovative outcomes that are proven, sure and of controllable risks, distill common experience scalable nationwide, and conduct training and exchanges through multiple channels with timely summary of implementation to ensure the grounding and breakthrough of reform experience.

As for the new batch of pilot FTZs, MOFCOM is following the unitary plan of the CPC Central in working intensively with related departments for more progress. Thank you.

Rossiya Segodnya: The White House on April 22, 2019 issued that the Trump Administration has decided to end waivers for sanctions on imports of Iranian oil products. Would China stop buying Iranian oil? Yesterday, President of Iran announced a partial withdrawal from nuclear JCPOA, would that affect the economic and trade cooperation between China and Iran? My second question is about Venezuela. What is the trading volume between China and Venezuela by now? Would its political crisis lead to significant oil supply disruption?

Gao Feng: I believe there are three questions. On whether China would stop importing Iranian crude oil, China and Iran are mutually crucial economic and trade partners. China resolutely opposes the US unilateral sanctions and the so called “long-arm jurisdiction”. Over the long term, normal cooperation on economic, trade and energy sectors within the framework of the international law between the international community, including China and Iran is reasonable and legal and should be respected and protected. It is also the common position shared by most members of the international community.

Crude oil export from Iran, a major global oil producer, has a significant role to play for stabilizing the global energy market. The US move is set to add volatility to the international energy market. China will continue to maintain the legitimate interests of our companies and we urge the US to take a responsible attitude and play a constructive role.

As for the Iran nuclear deal, Chinese foreign ministry spokesman explicitly demonstrated China’s position yesterday. China will maintain communication with all parties concerned and continue to work toward upholding and implementing the JCPOA. At the same time, we will stand firm in safeguarding the legal and legitimate interests of Chinese enterprises and drive the sound development of Sino-Iran economic and trade cooperation.

As for Venezuela, according to Chinese statistics, bilateral cargo trade volume between China and Venezuela stood around US$ 8.54 billion in 2018. For the first three months in 2019, bilateral cargo trade volume was around US $1.97 billion.

Venezuela represents the seventh largest trading partner in Latin America and the second largest source of crude oil for China. Oil trade takes a crucial position in our bilateral trade.

Over the years, China-Venezuela economic and trade cooperation has brought tangible benefits to our economic and social development, which is in line of fundamental interests of the two peoples. China values our economic and trade relations with Venezuela and hopes to continue our cooperation under the principle of mutually beneficial and win-win. Thank you.

Shanghai Securities News: Recently, MOFCOM and relevant authorities have been working on the export of used cars, could you brief us on the relevant data of the second-hand car exports and are there additional requirements for enterprises to export used vehicles?

Gao Feng: First of all, I’d like to explain the relevant policies on the export of second-hand cars. To standardize automobile export order, MOFCOM, starting from 2007, together with Ministry of Industry and Information Technology, General Administration of Customs and other relevant authorities decided to carry out export license administration on entire automotive products. Automobile producing enterprises must get industry access qualification from Ministry of Industry and Information Technology and trading enterprises must get authorization from eligible producing enterprises before exporting vehicles. Such policies enabled good connection and sound interactions between industry and trade policies, effectively standardized vehicle export order.

The current automobile export policy has responded to a rapid growing of new automobile exports, but failing to distinguish between new cars and old ones without a clear framework on second-hand automobile export. In practice, since the relationship of rights and responsibilities between automobile producing enterprises and second-hand automobile has changed in comparison to the new vehicles, enterprises managing second-hand automobile find it difficult to export such automobile that failed to be authorized by producing enterprises.

In the guideline released on second-hand car export, to avoid vicious competition, regions allowed to conduct such trade would comprehensively analyze multiple factors including integration capabilities of domestic vehicle information, overseas channels, after-sales services and credit records. Enterprises exporting used-cars no longer need the authorization from producing enterprises. Meanwhile, to ensure quality and safety, we should make sure that the second-hand car exports could meet admission standards of target markets, for target markets that without admission standards, local relevant standards should be met. What is more, used-car exporters should secure the cross-border after-sale services and supply of spare parts by self-supporting or cooperation with others.

MOFCOM will keep upgrading the export regulation and service models of second-hand automobile along with other relevant authorities to promote a stable and higher quality growth of foreign trade, stimulate the vitality of the domestic automobile consumption market and promote a sound and orderly development of China’s automobile industry. Thank you.

The economic daily: From April 28th to 30th, the Promotion Meeting of Nationwide Pedestrian Street Upgrading was held in Xi’an. Could you brief us on the progress?

Gao Feng: As for the upgrading of pedestrian streets, thoroughly implementing the deployment of the CPC Central Committee and State Council, MOFCOM aims to foster a batch of state-level pedestrian streets featuring good environment, prosperous business, rich cultural features and standardized regulation and guide the local authorities to build a batch of provincial-level pedestrian streets with local characteristics.

In 2018, MOFCOM initiated the pilot upgrading program of 11 pedestrian zones in 11 cities and we are working hard to improve its working mechanism and advancement measures.

First, a working mechanism of “five-level interaction” was established. The upgrading of pedestrian streets is not to start all over again, but improvement based on the current foundation under government’s leadership with social participation. To this end, communication between five levels—ministerial, provincial, municipal, district and block—is facilitated with monthly information exchange, quarterly tracking and reviewing and irregular dispatching. MOFCOM focuses on top-level design, guidance and offering policy support with other relevant authorities. Local people’s governments play a major role with a cross-functional communication mechanism featuring horizontal cooperation, vertical interaction, and are responsible for the implementation with a dedicated pedestrian street regulation authority.

Second, evaluation criteria of “benchmarking with the international community with unique characteristics” was set up. On the one hand, we align with the international standards, and on the other hand, Chinese local characteristics are emphasized. More specific requirements are raised as guidance including stepping up planning, improving environment, business quality, building smart blocks, enhancing cultural atmosphere, standardizing operation and management, among others.

Third, a “1+N” planning system was identified. Scientific planning marks the precondition of pedestrian street upgrading. We guided the locals with the requirement of “a detailed planning and multiple supporting plans involving block environment, industry layout and transportation networks”. Specific locations, target positions, functional layout are clearly identified with key tasks, timeline, roadmaps, expert teams in place to ensure tracking and guidance for a successful transformation of the pedestrian streets.

Local governments have prioritized pedestrian street upgrading. 11 provinces (municipalities and autonomous regions) and 18 cities have incorporated this program into their local government reports. The first batch of pilot regions have championed in establishing mechanisms, drawing up plans, setting tasks and issuing policies. A series of key projects have been launched and some highlighted ones have been successfully fulfilled as scheduled. During this year’s four-day May Day holidays, pedestrian volume for the 11 pilot pedestrian streets increased 19% year on year on comparable basis with the turnover up 28%.

Next step, while deepening the first batch of pilot streets, we will keep selecting pedestrian streets with a good foundation and highly representative as pilots and offer them guidance to build pedestrian streets with local characteristics. I believe with the joint efforts, our pedestrian streets could be more beautiful with more prosperous business activities and richer cultural features as platforms to encourage consumption upgrading, carriers that promote quality economic growth and windows for opening up further to better meet people’s growing demand for a better life. Thank you.

Bloomberg News: Does the Chinese side aware of the tweet sent by President Trump on Sunday threatening to levy more extensive tariffs on imported goods from China? If so, why the Chinese side responded a couple of days later? Please explain for that.

Gao Feng: I more or less had responded for your question. The escalating trade friction does not serve the interests of our peoples and people in other parts of the world. China deeply regrets for that. If the US implements the new tariffs, China will have to offer countermeasures. Thank you.

Gao Feng: Any other questions?

If not, this is the end of today’s press conference. Thank you.



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