Regular Press Conference of the Ministry of Commerce on April

Dear friends from the Press,

Welcome to the press conference today. I’m ShenDanyang, spokesman of the Ministry of Commerce. I am very glad to meet you all again and make a briefing on China’s business performance in the first quarter of this year, and answer your questions.

I. Domestic Market Operation

Domestic consumer market in the first quarter grew slowly and steadily. According to the statistics by NBS, retail sales of consumer    goods in the first quarter amounted to 5.5451 trillionYuan with a nominal increase of 12.4%year-on-year and 2.4 percentage point lower as compared with that of the same period of previous year. The actual growth was 10.8% year-on-year, when price fluctuation excluded, 0.1 percentage point lower as compared with that of the same period of previous year. Retail sales of consumer goods in March rose 12.6%, 0.3 percentage point higher as compared with that of in January and February.

  1. Consumptionin rural areas grew faster than that of urban areas.Consumptionin urban areas was up by 13.9%, and the growth rate was 1.7 percentage points higher as compared with that of consumption in urban areas, 0.7 percentage point slower as compared with that of the same period of previous year.

  2. Sales by medium and large sized circulation enterprises saw a steady rise. Retail sale of consumer goods in enterprises above designated size rose 10.3% and the growth rate was fasterthan that of in January and February.Sales of 3,000 key retailers monitored by MOFCOM was up by 8.0%, 0.3 percentage point lower than that of the same period of previous year. Among that, the growth rate in March was 0.5 percentage point faster as compared with that in January and February.

  3. Consumption in Catering dropped sharply. Catering revenue grew 8.5%, 4.8 percentage points lower as compared with that of previous year. Sales of key catering enterprises monitored by MOFCOM dropped 3.4%, 12.6 percentage points slower as compared with that of previous year and 3.4 percentage points slower as compared with that of in January and February.

  4. Sales of housing and value-ensured goods increased. Sales value of home appliances, furniture and building and gold, silver and jewelry in 3,000 key retailers monitored by MOFCOM rose 12.7%, 6.4% and 14.6% respectively as compared with that of previous year. The growth rate of household appliances and audiovisual equipment in enterprises above designated size rose 16.1% year-on year, and the growth rate of furniture rose 22.4%, which significantly higher than the level of sales of enterprises above designated size.

  5. Demands for automobiles and communication commodities slowed down. Sales of automobiles in 3,000 key retailersmonitored by MOFCOM dropped2.6% and the growth rate of communication equipment was10.5percentage points slower as compared with that of previous year. The growth rate of communication equipment,automobiles, and petroleum and petroleum productsin enterprises above designated size was down by 31.3%, 4.6% and 11.7% respectively as compared with that of previous year.

  6. Consumer price dropped on the whole. The consumer price in the first quarter rose 2.4%, 1.4 percentage points slower as compared with that of the same period of previous year. The prices of agricultural products in 36 medium-and-large sized cities monitored by MOFCOM rose 4.2%. Among that, the price of agricultural products in March was up by 3.8%, and the growth rate was 1.9 percentage points lower than that of in February. The prices of pork and vegetables dropped 3% and 7.9% respectively, and the prices of beef, mutton, eggs and peanut oilrose by the largest margin of 33%, 16.6%, 13.7% and 12% respectively.

II. Foreign Trade

According to Customs statistics, total value of our import and export in the first quarter of this year were of 6.12 trillion Yuan (US$974.67 billion), up by 13.4%year-on-year, exchange rate fluctuation excluded (same as below). Among that, exports amounted to 3.2 trillion Yuan (US$508.87 billion), up by 18.4%; and imports amounted to 2.9 trillion Yuan (US$465.8 billion), up by 8.4%. Trade surplus was 270.5 billion Yuan (US$43.07 billion). The main features of foreign trade are as follows:

  1. Trade with U.S. and ASEAN was steadily up，and with HK and South Africa increased rapidly. China-U.S. trade in the first quarter of this year rose 10.8%, and China-ASEAN trade was up by 15.5%. Mainland China-HK trade and China-South Africatrade rose 71.2% and 62.1% respectively, 57.8 and 48.7 percentage points higher than the overall growth rate of our foreign trade. Besides, China-EU trade dropped1.9%, andChina-Japan trade dropped 10.7%.

  2. Rapid growth in Export by the central and western Chinaremained ; export by eastern China saw ups and downs. Export by six provinces in central China and western China rose 40.2% and 41.2% respectively. Among that, growth rate of exports of Jiangxi, Anhui, Sichuan and Chongqing was 92.5%, 98.1%, 59.6% and 36.2% respectively; growth rate of export of Guangzhou was 37.7%, still ranking first in export.Besides, growth rate of export of Shandong and Fujian was up by 5.8% and 18.8%, while that of Jiangsu and Shanghai dropped 1.5% and 1.2% respectively.

  3. Both General trade and processing trade grow steady. Import and export by general trade in the first quarter of this year was US$486.30 billion, up by 7.4%. Among that, exports amounted to US$233.66 billion, up by 16.6%; imports registered US$252.64 billion, rose by 0.1%. Import and exportby processing trade was US$323.02 billion, with an increase of 6.0%, among that, export registeredUS$203.64 billion, up by 3.9% while import amounted to US$119.38 billion, up by 9.9%. Besides, export and import by trade other than general trade and processing trade increased by 114% and 36.8% respectively.

  4. Exports of mechanic and electronic products grew steadily, and exports of labor-intensive products grew significantly. Our imports and exports of mechanic and electronic products in the first quarter of this year registered US$497.5 billion, up by 16.6% year on year. Among that, exports amounted to US$298.54 billion, up by 18.1%, accounting for 58.5% of total exports. Imports and exports of high-tech productswas US$299.81 billion and rose by 27.7%. Among that, exports registered US$163.33 billion, up by 28.4%,10 percentage points higher than that of the total exports.Import ofhigh-tech products registered US$136.48 billion and rose by 27%, 18.6 percentage points higher than that of total imports. Total export ofclothing, textiles, footwear,furniture, plastic products, bags and suitcases and toys was US$97 billion and rose by 21.8%.

  5. The value of imports of most energy and resource products was down, and the prices of imports of raw materials rose month-on month. The value of imports of iron ore, crude oil, copper, automobiles and refined oil dropped 6.3%, 4.7%, 29.4%, 29.4%, and 11.7%, while that of soybean rose 2.2%. The price of imported iron ore saw a consecutive rise for five months, and the prices of imported crude oil, refined oil, plastics in primary forms and log were kept rising for three months.

III. Foreign investment

In the first quarter of 2013, 4,822 foreign-invested enterprises were newly established, down by 10.36% year on year; realized FDI reached US$29.905 billion, up by 1.44% year on year. Among that, in March, 1,907 foreign-invested enterprises were newly approved, down by 19.67% year on year; realized FDI amounted to US$12.421 billion, up by 5.65% year on year.

Bright spots of foreign investment in the first quarter are as follows:

  1. Realized FDI in both manufacturing and service sectors increased. In manufacturing sector, 1,458 new foreign-invested enterprises were set up, down by 23.66% year on year; realized FDI reached US$13.174 billion, up by 0.64% year on year, accounting for 30.24% and 44.05% respectively of the total national amount over the same period. In service sector, 2,853 new foreign-invested enterprises were established, down by 5.31% year on year; realized FDI amounted to US$14.427 billion, up by 2.82% year on year, taking up 59.17% and 48.24% respectively of the total national amount over the same period. In agriculture, forestry, animal husbandry, and fishery sectors, 135 foreign-invested enterprises were newly established, down by 10% year on year; realized FDI registered US$327 million, down by 39.4% year on year, accounting for 2.8% and 1.09% respectively of the total national amount over the same period.

  2. Investments from the US and EU countries grew by big margin. Realized FDI from the US registered US$1.058 billion, up by 18.49% year on year. Realized FDI from EU 27 countries reached US$2.051 billion, up by 45.01% year on year. Realized FDI from ten countries/regions in Asia (Hong Kong, Macao, Taiwan, Japan, the Philippines, Thailand, Malaysia, Singapore, Indonesia and South Korea) amounted to US$25.794 billion, down by 0.34% year on year. Among that, realized FDI from Japan reached US$2.290 billion, up by 10.48% year on year.

  3. Realized FDI in the western China grew faster. Realized FDI in the eastern China was US$25.047 billion, up by 0.17% year on year, accounting for 83.76% of the total national amount; Realized FDI in the central China was US$2.496 billion, up by 0.69% year on year, taking up 8.35% of the national total; Realized FDI in the western China was US$2.362 billion, up by 18.29% year on year, accounting for 7.9% of the national total.

IV. Investment and economic cooperation overseas

Direct investment overseas. In the first quarter of 2013, Chinese investors had directly invested in 1,621 overseas companies in 138 countries and regions, and total direct investments in non-financial sectors (similarly hereinafter) reached US$23.8 billion, up by 44% year on year.

  Our Investments in seven major economies including Hong Kong, ASEAN, EU, Australia, US, Russia and Japan reached US$19.7 billion, accounting for 83% of the total national direct investment overseas. Among that, investments in Hong Kong, ASEAN, EU, Australia and US were up by 34%, 99%, 29%, 33% and 104% respectively while that in Russia and Japan were down by 61% and 17% respectively.

  Of investment mix, direct investment overseas reached US$5.652 billion by province, accounting for 23.7% of the total investments overseas over the same period.

  Contracted projects overseas. In the first quarter of 2013, turnover of China's contracted projects overseas amounted to US$25.2 billion, up by 21% year on year, and value of newly-signed contracts was US$40.1 billion, up by 35% year on year. The projects each with a contract value above US$50 million were 171 (106 over the same period of last year), with a total value of US$31.2 billion, accounting for 78% of the total value of newly-signed contracts. Among that, the projects each with a contract value above US$100 million were 97, an increase of 37 over the same period of last year.

  By the end of March 2013, total contract value of the projects overseas reached US$1.0383 trillion with the realized turnover of US$680.8 billion.

Labor service cooperation overseas. In the first quarter of 2013, laborers sent abroad reached 95 thousand, an increase of four thousand over the same period of last year. Among that, laborers sent abroad for contracted projects were 52 thousand and that for labor cooperation projects were 43 thousand. By the end of March, all laborers sent overseas totaled 823 thousand, an increase of 14 thousand over the same period of last year.

V. Trade and Investment Report by Country 2013

In accordance with relevant provisions and regulations, MOFCOM released Trade and Investment Report by Country 2013 (hereinafter referred as Report) for the purpose of helping Chinese enterprises and relevant organizations to comprehensively understand the trade and investment policies of China’s major trading partners and raise their risk awareness and capability of risk prevention.

  The Report is focused on trading system and measures of our 13 major trading partners including US, EU, Japan, Brazil and Russia, potential barriers, and assessment on trade and investment environment. Their imports from and exports to China account for about 57% of our total foreign trade.

  Besides, MOFCOM released at the same time The Study on Communication Equipment Manufacturing, specifically introducing the information on market access system, industry supporting policies and major barriers on trade and investment in communication equipment manufacturing industry of the US, EU and other China’s major trading partners. The Report can be obtained at the website (http://gpj.mofcom.gov.cn) of Bureau of Fair Trade and websites of Chambers of Commerce for Imports and Exports.

VI.The 9th China Meat Expo

Themed as “ensure meat safety and promote the safe consumption of meat”, the 9th China Meat Expo will be held in China International Exhibition Center in Beijing on June 22 to 24. The Expo is supported by MOFCOM, guided by MOFCOM Department of Market Supervision, sponsored by MOFCOM Promotion Center of Circulation Industry, and co-sponsored by Beijing Municipal Commission of Commerce in order to raise people’s concern on meat safety, create a good environment for meat production and consumption, as well as, a platform for upgrading, optimization and technological advancement of meat industry.

  Eight session of China Meat Expo were successfully held for from 2001. The 9th China Meat Expo has five major exhibitions, namely, Achievements of safety meat promoted by MOFCOM (Achievements made by the construction of meat and vegetables retrospective system, and "Safety Meat" service system), Brand enterprises in meat industry chain, Science and technology of slautering industry, Meat in International area, Taiwan, Hong Kong and Macao, and Popularization of safety consumption of meat. The 9th China Meat Expo covers breeding, slaughtering and processing, frozen meat, sausage processing, slaughtering equipment, testing equipment and quality certification, research, finance, and media.

It will be colorful Expo, in the exhibition of Popularization of safety consumption of meat; consumers will know the responsibilities for food safety of slaughtering enterprises, specification of pork processing and retrospective system through pictures, videos and explains by experts. Besides, Forum on the Development of Meat Industry will also be held in the Expo to interpret industrial policies, research industrial trends, and discuss industrial hot spots.

All information published in this website is authentic in Chinese. English is provided for reference only.
 

Source: Ministry of Commerce Website[2013-05-12]