Shou Xiaoli:

The last question, please.

CNBC:

The FTZs and FTAs are important to China's opening-up. What are the new features of China's opening-up in light of the recent FTAs negotiation and development? What benefits do they bring to foreign enterprises? What is the next plan? Thank you.

Wang Shouwen:

Thank you for your questions. As I said just now, the number of FTAs signed by China has nearly doubled in the past decade. In addition, the FTAs have demonstrated many attributes of China's opening-up. Here I would like to highlight two aspects:

First, in terms of trade in goods, tariff levels are lower, and customs clearance is more efficient. Since 2012, China has signed nine new FTAs with countries including Switzerland, South Korea, and Australia. In most of the agreements, the proportion of goods with zero tariffs has reached over 90%, and some agreements have seen it at 97%. In other words, enterprises in China and those in countries which signed FTAs with China can import most of the products at a lower cost without paying import tariffs. When they export to partner countries, they basically do not need to pay import tariffs in those countries either. It can be said that the businesses are enjoying huge benefits.

Speaking of customs clearance efficiency, it took about four days for China's imported goods to go through customs in 2017, but now it only takes less than one and a half days. In 2017, it took about 12 hours to complete customs clearance for goods exported from China, and now it just takes about 1.2 hours.

Second, in terms of trade in services and investment, the market access has been expanded, and opening-up has been intensified. For example, for trade in services, we have promised to open up 22 more sectors in the recent RCEP free trade agreement, compared with the 100 sectors we promised when we joined the WTO. Of the sectors that have already been opened up in line with our commitments to WTO accession, we have pledged to open 37 sectors wider in the RCEP. As for the investment, we have made a negative list and promised higher-level opening-up in manufacturing, agriculture, and mining, among other sectors.

You asked what benefits these opening-up measures have brought to foreign-invested enterprises. Well, we summarized that China's opening-up has expanded the opportunities for foreign-funded companies and other foreign companies to enter China's market, as well as the opportunities for domestic and foreign companies in China to enter the markets of FTAs partners. More importantly, the foreign-invested enterprises have gained more investment chances, as some sectors were once forbidden or restricted to foreign investment while more sectors are now open to foreign investors. Furthermore, the signing of the FTAs has improved China's market-oriented, law-based, and internationalized business environment, creating more opportunities for foreign businesses. Therefore, we hope foreign enterprises can seize these opportunities and secure better development in China.

General Secretary Xi Jinping pointed out that China would implement the strategy of upgrading FTZs and build a global network of high-standard FTZs. Looking ahead, we will continue to actively work for joining the CPTPP and DEPA as requested by the CPC Central Committee. At the same time, we will further advance negotiations on China-Japan-ROK Free Trade Agreement and free trade agreements with the Gulf Cooperation Council, Israel, and Ecuador.

We believe that as China wins more free trade friends, the dividends of its further opening-up will benefit more and more Chinese and foreign enterprises. Thank you.

Shou Xiaoli:

Thank you to all six speakers and friends from the media. Today's briefing is now concluded. Goodbye.

Translated and edited by Huang Shan, Ma Yujia, He Shan, Liu Sitong, Zhang Jiaqi, Zhang Rui, Liu Qiang, Zhang Junmian, Yang Xi, Xu Kailin, Li Huiru, Yan Xiaoqing, Wang Yiming, Zhou Jing, Xu Xiaoxuan, Wang Yanfang, Yuan Fang, Wang Qian, Liu Jianing, Zhang Lulu, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.

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