Ministry of Commerce: China's non-financial outbound direct investment reached 83.55 billion US dollars from January to July, an increase of 16.2% year-on-year.

On August 22, the Ministry of Commerce held a routine press conference. Ministry of Commerce spokesperson, He Yadong, introduced that from January to July 2024, China's non-financial outward direct investment amounted to 83.55 billion US dollars, an increase of 16.2% compared to the previous year. Among them, China's investment in non-financial projects in countries participating in the Belt and Road Initiative reached 17.94 billion US dollars, an increase of 7.7% compared to the previous year. During the same period, the turnover of outbound contracted projects amounted to 86.28 billion US dollars, a 6.6% increase year-on-year, with new contracts reaching 133.95 billion US dollars, a 25% increase. Chinese companies completed contracted projects in Belt and Road countries totaling 69.88 billion US dollars in turnover, a 5.2% increase year-on-year, with new contracts valued at 110.11 billion US dollars, a 22.3% increase compared to the previous year. Spoken text as follows: Ministry of Commerce Holds Routine Press Conference (August 22, 2024) [He Yadong]: Dear journalists, Good afternoon, welcome to the routine press conference of the Ministry of Commerce. Today I have some information to share with you. 1. China's investment cooperation from January to July this year From January to July 2024, China's non-financial outward direct investment amounted to 83.55 billion US dollars, a 16.2% increase compared to the previous year. Among them, Chinese companies invested 17.94 billion US dollars in non-financial projects in countries participating in the Belt and Road Initiative, a 7.7% increase. From January to July 2024, the turnover of outbound contracted projects amounted to 86.28 billion US dollars, a 6.6% increase year-on-year, with new contracts reaching 133.95 billion US dollars, a 25% increase. Chinese companies completed contracted projects in Belt and Road countries totaling 69.88 billion US dollars in turnover, a 5.2% increase year-on-year, with new contracts valued at 110.11 billion US dollars, a 22.3% increase. That's the information I wanted to share with you, and now I'm happy to answer any questions from journalists. Please ask your questions. [21st Century Business Herald Reporter]: Recently, the Ministry of Commerce and other seven departments issued a notice regarding further efforts in the trade-in of old cars for new ones. Could you provide an update on the progress of the old-for-new car trade-in program and any policy adjustments this time? [He Yadong]: Thank you for your question. At the end of April, the Ministry of Commerce, the Ministry of Finance, and another seven departments issued the "Implementation Rules for Subsidies for Trade-In of Old Cars for New Cars," providing direct subsidies to consumers for scrapping old cars and purchasing new ones. The effects of the policy have gradually become evident over the past three months, especially in the last two months, with a rapid increase in subsidy applications. As of noon today (August 22), the Ministry of Commerce's information platform for the old-for-new car trade-in has received over 680,000 subsidy applications, with approximately 340,000 new applications in the past month. The policy for scrapping and updating old cars has led to a rapid increase in the recycled volume of scrapped cars. From January to July, 3.509 million scrapped cars were recycled nationwide, a 37.4% increase year-on-year, with increases of 55.6%, 72.9%, and 93.7% in May, June, and July respectively. In order to further expand the impact of the policy and respond to calls from all sides, the Central Committee of the Communist Party of China and the State Council have decided to allocate special long-term national debt funds to support the trade-in of consumer goods for old ones. In terms of the old-for-new car trade-in, the main policy adjustments are as follows: Firstly, to raise standards. The subsidy standards for scrapping and updating new energy vehicles and fuel vehicles have been increased from 10,000 yuan and 7,000 yuan, respectively, to 20,000 yuan and 15,000 yuan. Secondly, to be retroactive. For eligible subsidy applications for the scrapping and updating of old cars, all applications will be processed according to the new subsidy standards; and for subsidies that have already been issued, the shortfall will also be compensated. Thirdly, to optimize the process. The relevant departments will work together to optimize the subsidy application review and fund disbursement process, to ensure that consumers receive subsidies as soon as possible. While promoting the trade-in of old cars, we will also guide local authorities to make good use of the central support funds and formulate and implement reasonable policies for subsidies to promote the continued effectiveness of the old-for-new car trade-in policy. Thank you. [Cover News Reporter]: Recently, General Secretary of the Communist Party of Vietnam and President of Vietnam, Su Lin, visited China on a state visit. Could you introduce the current economic and trade situation between China and Vietnam? How will the two countries better promote the upgrading of their economic and trade cooperation? [He Yadong]: In recent years, bilateral trade between China and Vietnam has developed rapidly, and investment cooperation has yielded significant results. In terms of bilateral trade, China is Vietnam's largest trading partner, with bilateral trade between China and Vietnam surpassing 200 billion US dollars for three consecutive years, reaching 145.07 billion US dollars from January to July this year, a 20.9% increase year-on-year. China is also the largest export market for Vietnamese Shenzhen Agricultural Power Group, with fruits like durian and dragon fruit being popular among Chinese consumers, with imports from Vietnam accounting for approximately one-fifth of China's imports from ASEAN countries. In terms of investment cooperation, Vietnam is an important destination for Chinese investment overseas, with Chinese enterprises investing 1.84 billion US dollars in Vietnam from January to July this year, maintaining rapid growth. Chinese companies have undertaken projects such as the Hanoi Metro Line 2 in Vietnam, providing convenient transportation for local residents. Chinese companies have also invested in a number of solar and wind power projects, becoming examples of cooperation in the green economy between the two sides. In the future, the Ministry of Commerce will meticulously implement the important consensus reached by the top leaders of China and Vietnam, and take the 75th anniversary of the establishment of diplomatic relations between the two countries next year as an opportunity to promote the upgrading of economic and trade cooperation between the two countries. Firstly, to strengthen bilateral trade cooperation, support enterprises from both sides to make full use of platforms like the China International Import Expo, the Canton Fair, and the China-ASEAN Expo to expand trade in high-quality Shenzhen Agricultural Power Group and industrial manufactured goods. Secondly, to nurture new momentum for investment cooperation, promote mutually beneficial cooperation in areas such as digital economy and green development. Thirdly, to deepen supply chain cooperation, support both sides in enhancing cooperation in parks and at the local level, jointly promoting smooth trade and interconnected industry development. Fourthly, to advance regional economic integration, accelerate the negotiation of the China-ASEAN Free Trade Area 3.0, and continue to unleash the potential of comprehensive regional economic partnership.The dividends of the Regional Comprehensive Economic Partnership (RCEP) will make a greater contribution to regional development and prosperity. Thank you.Economic Reference News Reporter: In July, the total retail sales of consumer goods increased by 2.7% year-on-year, and the market operations accelerated. How does the Ministry of Commerce view the current consumption data and the upcoming situation? He Yadong: Since the beginning of this year, the consumer market has shown a stable growth trend overall, with traditional consumption steadily expanding, new consumption rapidly developing, and service consumption expanding and improving, providing strong support for the improvement of the economy. The consumer market mainly shows the following characteristics: First, the growth momentum is stable. In July, the total retail sales of consumer goods reached 3.78 trillion yuan, a year-on-year increase of 2.7%, which was 0.7 percentage points higher than June. Among them, the retail sales of goods increased by 2.7% year-on-year, which was 1.2 percentage points higher than in June. Among the major categories of goods, the retail sales of more than sixty percent of the goods increased faster year-on-year compared to June. Second, there are many bright spots in consumption. Digital consumption, green consumption, and healthy consumption are flourishing, with rapid growth in sales of new energy vehicles, smart homes, and domestic "trendy products". From January to July, the year-on-year growth of physical goods online retail sales reached 8.7%, accounting for 25.6% of the total retail sales of consumer goods. In July, the retail sales of new energy vehicles increased by 36.9% year-on-year, with a penetration rate of 51.1%. The retail sales of sports and entertainment equipment and communication equipment for units above the quota increased by 10.7% and 12.7% respectively year-on-year. Third, the market vitality is strong. With the arrival of the summer vacation, tourism, cultural and entertainment services consumption remains active. From January to July, the year-on-year growth of service retail sales reached 7.2%, which was 4.1 percentage points higher than the retail sales of goods. Among them, catering revenues increased by 7.1%, while the retail sales of transportation services and communication information services maintained double-digit growth. Overall, as policies such as promoting the replacement of old products with new ones and promoting high-quality development of service consumption are implemented more quickly, various consumption-promoting activities are continuing to deepen, and it is expected that the overall consumption market will continue to improve. Thank you. CNBC Reporter: Recently, the Ministry of Commerce issued an announcement about the implementation of export control on antimony and other items, sparking industry attention. Could you introduce the reasons for implementing export control on antimony? Will tungsten also be subject to export control? He Yadong: On August 15, the Ministry of Commerce and the General Administration of Customs jointly issued an announcement, deciding to implement export control on some antimony and superhard material-related items. The above policy will officially take effect on September 15. Antimony and superhard material-related items have obvious dual military and civilian attributes. China is following international practices and, based on its own needs, implementing export control on related items to better safeguard national security and fulfill international obligations such as non-proliferation. The relevant policy does not target any specific country or region. Exports that comply with relevant regulations will be permitted. Next, we will continue to promote export control work in accordance with laws and regulations. Thank you. Reuters: China's latest decision to initiate an anti-subsidy investigation on imported dairy products originating from the European Union has raised concerns in the industry. Is this to retaliate against the European Commission's decision to lower but not eliminate tariffs on Chinese electric vehicles? He Yadong: Firstly, I would like to point out that this case was initiated at the request of the domestic industry in China, which differs fundamentally from the European Commission's initiation of an anti-subsidy investigation on Chinese electric vehicles without any request from member states and industries. According to relevant Chinese laws and regulations and WTO rules, domestic industries have the right to initiate trade remedy applications to maintain normal market competition order and protect their legitimate rights. After receiving the application, the Ministry of Commerce conducted preliminary consultations with the European side on the subsidy issues according to the statutory procedures, and reviewed the materials and relevant evidence submitted by the applicant. The Ministry of Commerce believes that the application from the domestic industry meets the conditions for initiating an anti-subsidy investigation, and therefore decided to launch the investigation. I want to emphasize that the investigation has just begun, and we will carry out the investigation openly and transparently in accordance with relevant Chinese laws and regulations, and adhere to WTO rules to fully protect the rights of all parties involved. Thank you. This article is compiled from the official website of the Ministry of Commerce, translated by GMTEight, Editor: Liu Jiayin.