21st Century Business Herald: 

Since last year, domestic demand has driven a steady recovery in consumption, yet imports have seen a slight decline. How should we interpret this situation? What are the expectations for imports this year? Furthermore, given the current volatility in international commodity prices, are there expected implications for China's future imports? Thank you.

Lyu Daliang:

Thank you for your questions. Now, let me provide a more detailed introduction regarding the import situation.

Import value is influenced by both import quantity and price. In 2023, China's import value experienced a slight decrease, with the import price dropping by 3.1% while the import quantity grew by 2.9%. In other words, the decrease in import value was due to the downward trend in goods prices. However, the rise in import quantity indicates a continued recovery in production and robust consumer demand in the country. Imports are essential in both domestic work and life, offering more opportunities for foreign companies to participate in the Chinese market.

Raw materials and key parts imports have increased to better satisfy domestic needs for steadily expanding production. In 2023, China's import quantities of crude oil, natural gas, and coal increased by 11%, 9.9%, and 61.8%, respectively. Imports of iron, copper, and aluminum ore rose by 6.6%, 9.1%, and 12.9%, respectively. Additionally, the import value of central processing components for computers, aircraft components, and audio-video equipment parts grew by 61.6%, 40.8%, and 11.5%, respectively. These imports have played a significant role in ensuring the safety and stability of the industrial and supply chains of the relevant domestic industries.

As for the import of consumer goods, this has enriched consumers' purchasing options. In 2023, China imported consumer goods such as specialty foods, maternity and baby products, and digital home appliances, with a total volume of 1.95 trillion yuan, an increase of 1.2%. In addition, China accelerated the fostering of import trade innovation demonstration zones and developed new formats and models such as cross-border e-commerce. According to preliminary statistics, China's cross-border e-commerce imports totaled 548.3 billion yuan in 2023, up by 3.9%. Convenient and flexible online shopping offers consumers broader and swifter access to imported goods.

China continues to expand its imports, and China's development is increasingly becoming an opportunity for the world to share. In 2023, China successfully hosted major exhibitions such as the China International Import Expo, the China International Consumer Products Expo, and the China Import and Export Fair, providing new opportunities for global businesses to enter the Chinese market. At the same time, China has continued to promote the entry of high-quality agricultural products and food. In 2023, imports of fresh durian and edible bird's nests from Vietnam, fresh pears from South Africa, dragon fruit from Ecuador, and avocados from Kenya showed a rapid growth momentum. This enables Chinese consumers to enjoy a greater variety of high-quality products from around the world, and China's large market is increasingly becoming a global market that is shared by all.

Regarding import trends for this year, China will try to expand domestic demand, stimulate potential consumption, and increase beneficial investments to create favorable conditions for further expanding imports. In addition, the advantage of China's huge market will continue to sustain import growth.

As for the impact of commodity prices on future imports, as I mentioned earlier, import volume is determined by both quantity and price. The current global supply and demand situation for commodities is complex, with many factors affecting both quantity and price trends. We will continue to monitor these factors closely. Thank you.