21st Century Business Herald:

In the first half of the year, China's total import and export value of goods hit a record high, and the export growth rate exceeded market expectations. What are the driving forces behind China's high-speed growth with importing and exporting? In the face of risks, such as the Red Sea crisis, can China's foreign trade continue to grow steadily in the second half of the year? Thank you.

Zhao Zenglian:

The public are probably concerned over these issues. I'll invite Mr. Lyu Daliang to answer the questions.

Lyu Daliang:

Thank you for the question. As we all know, we released the data on imports and exports for the first half of this year on July 12. Since then, there have been many comments from different perspectives. For example, some pointed out that our foreign trade in the first half of this year saw stable growth in terms of both quality and volume, with many highlights. Others commented on the emergence of new growth drivers in China's foreign trade half-year report, and some noted that China's export performance had exceeded expectations. Overall, in the first half of this year, our foreign trade reached a new high, with ample vitality from business entities, solid advantages from traditional growth drivers and continuous emergence of new ones. The foundation for sound and steady growth in foreign trade is solid, and the achievements are hard-earned and encouraging.

According to our analysis, the rapid growth of our foreign trade in the first half of this year is mainly due to three factors. First, macro policies have been firmly advanced, with various regions and departments earnestly implementing the arrangements of the Central Economic Work Conference, and the policy dividends continue to be released. Overall, our economy has performed stably while also ensuring progress, domestic production has grown steadily, and consumer demand has continuously recovered. All of these have provided strong support for stable growth in foreign trade. At the same time, the marginal improvement in external demand has also helped enterprises secure orders and expand markets. This has been reflected through various global economic and trade data, while the latest forecasts from institutions such as the World Bank and the Organization for Economic Co-operation and Development have all raised global growth expectations for 2024. The World Trade Organization's Global Trade Barometer has also stayed above the boom-bust line for two consecutive quarters. Additionally, our industrial system is complete, technological innovation drives industrial innovation and new quality productive forces spur new growth drivers in foreign trade. These factors enable us to provide innovative and high-quality products to the world.

As for the trend you asked about, the current external environment is increasingly complex, severe and uncertain, with high geopolitical risks. Some countries practice unilateralism and protectionism, and the interference caused to the global production and supply chains is gradually becoming apparent. As you mentioned, issues like the Red Sea crisis leading to shipping blockages and rising freight rates place increased cost pressures on enterprises. We believe that there are still many challenges to maintaining growth in foreign trade in the second half of this year.

Of course, encountering difficulties along the way is normal. Supported by the advantages of a super-large domestic market and a complete industrial system, and safeguarded by various policies to stabilize foreign trade, especially the strategic arrangements of the third plenary session of the 20th CPC Central Committee on deepening the foreign trade structural reform, the development of our foreign trade will be injected with strong momentum, ensuring steady and continued progress.

In accordance with the Party Central Committee and the State Council's decisions and plans, the GACC will continue to implement various policies and measures to stabilize foreign trade, boost the growth of trade in intermediate goods, support the imports of advanced technology and equipment as well as key components, and promote the development of cross-border e-commerce and other new business forms, focusing on consolidating the positive trend of foreign trade. Meanwhile, we will closely monitor changes in the situation, strengthen data monitoring and analysis, and reserve and provide a new round of customs clearance policies to help enterprises lower burdens and costs, working to steadily increase the volume and quality of foreign trade.

That is all for my answer. Thank you.