National Business Daily:

The Central Economic Work Conference has also emphasized the need to boost trade in intermediate goods. How did China's trade in intermediate goods perform in 2023? Moving forward, what actions will the GACC take to contribute to boosting trade in intermediate goods? Thank you.

Wang Lingjun:

Thank you for your questions. Since the Central Economic Work Conference emphasized the importance of boosting trade in intermediate goods, more people have become familiar with this relatively specialized concept. The goods in international trade are diverse. According to U.N. standards, they can be classified into three categories: capital goods, intermediate goods, and consumer goods. Intermediate goods include raw materials, semi-finished products, and components.

With the development of globalization and the international division of labor, intermediate goods have become a crucial part of global trade. Serving as a connection point for upstream and downstream industries in industrial chains, they account for over 50% of global goods trade and play a vital role in promoting the development of global trade and ensuring stability in global industrial and supply chains. China has deeply integrated into globalization, and the proportion of its import and export of intermediate goods in the global total continues to increase. Last year, the import and export of intermediate goods reached 25.53 trillion yuan, accounting for 61.1% of the total foreign trade value, which remains at a historically high level. Let's analyze intermediate goods in terms of exports and imports.

In terms of exports, intermediate goods play a significant role in promoting the development of industries worldwide. With a well-developed industrial system and strong supply capacities, China exports a large number of intermediate goods, meeting the industrial development needs of different regions globally. In 2023, China's intermediate goods exports reached 11.24 trillion yuan, accounting for 47.3% of the total export value. This includes 6.37 trillion yuan in mechanical and electrical products, up 1.9% year on year. In terms of specific markets, China's exports of automotive parts to Japan and Mexico, lithium batteries to the U.S. and Germany, and display modules for tablets to Vietnam and Indonesia all saw double-digit growth. During the same period, China exported over 1 trillion yuan of textile and plastic products, contributing to the industrial growth of ASEAN and African countries.

In terms of imports, intermediate goods significantly support domestic production and supply and provide a market for global enterprises. Last year, China's import of intermediate goods reached 14.29 trillion yuan, accounting for 79.4% of the total import value. This includes 4.41 trillion yuan in mechanical and electrical products, 3.2 trillion yuan in energy products, and 1.67 trillion yuan in metal ore sands. These products have played a positive role in satisfying domestic production demands. Additionally, China sources its imports from over 200 countries and regions across six continents, and its substantial market demand offers vast cooperation opportunities for enterprises worldwide.

The Central Economic Work Conference has identified boosting trade in intermediate goods as a key task for expanding high-quality opening up. This demonstrates China's commitment as a major country to deepen international cooperation on industrial and supply chains through concrete actions. In line with the arrangements made by the Central Economic Work Conference, the GACC will support the import of key components and important raw materials, ensure the stable supply of food, energy resources, and quality agricultural products, and improve the mechanism for efficient and smooth customs clearance. These efforts aim to create a better business environment at border ports and offer more convenient cross-border trade services, thereby boosting trade in intermediate goods. Thank you.

Shou Xiaoli:

Thanks to both speakers and also to our friends from the media for participating. Today's briefing is hereby concluded. Goodbye, everyone.

Translated and edited by Wang Wei, Wang Yiming, Xu Xiaoxuan, Liu Jianing, Liu Qiang, Qin Qi, Liu Caiyi, Zhou Jing, Wang Ziteng, Liu Sitong, Yang Xi, Zhang Rui, Mi Xingang, Li Huiru, Xu Kailin, Yuan Fang, He Shan, Xiang Bin, Ma Yujia, Huang Shan, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.