CMG:

We have noticed that imports of bulk commodities such as energy and metal ores continued to increase in the first quarter. Does this mean that domestic demand has increased? As mentioned in this year's Report on the Work of the Government, we should actively increase the import of high-quality products. Can you brief us on the import situation? In addition, what are your expectations for China's import trends this year? Thank you.

Wang Lingjun:

Thank you for your questions. For many years, China has insisted on implementing the strategy of increasing imports. Imports have maintained a good upward trend. Specifically speaking:

First, the import market is huge. China has been the world's second largest import market for 15 consecutive years, with a cumulative import scale of nearly 200 trillion yuan. According to preliminary estimates, last year China accounted for 10.6% of the total global value of imports, continuing to maintain a high standard of more than 10%. In the first quarter of 2024, China's imports have increased in both volume and price, and the scale of imports reached a new high. It can be said that China's large market provides great opportunities to the world.

Second, the demands of production and consumption increased. As the Chinese economy continuously recovers and grows, industrial production has expanded quickly, and consumer needs have increased steadily. The country's huge market and the significant demand for both production and consumption have driven an increase in imports of raw materials, key components, and consumer goods. In the first quarter of this year, the volume of energy product imports and metal ore imports rose by 8% and 5%, respectively. Meanwhile, the import volume of integrated circuits and semiconductor manufacturing equipment increased by 14.3% and 82.7%, respectively. The growth rates of imports in sectors like textiles, garments, dried and fresh fruits, beef, televisions, and racing bicycles all exceeded double-digit increase, and imports of consumer goods related to people's basic everyday needs also had a relatively good performance. Imports of various high-quality products from around the world provide not only more and better choices for domestic consumers but also more opportunities for foreign enterprises.

Third, imported products varied in different regions. Leveraging their respective advantages and actively involving themselves in the nation's new development dynamic, all regions nationwide have diligently implemented the strategy for coordinated regional development . These efforts have brought a fresh look for imports featuring distinctive characteristics, high complementarity, and great diversity. Playing a leading role in opening-up, the Yangtze River Delta region is the most important field for importing high-tech products and consumer goods. Nine mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area performed strongly in the electronics industry, with the import volume of computer accessories and integrated circuits up by 74.2% and 19.2%, respectively, accounting for over 40% of the national total. The Beijing-Tianjin-Hebei region plays a prominent role in guaranteeing the supply of bulk commodities and covers more than half of the country's crude oil, natural gas, and grain imports. The central and western areas accelerated their industrial transformation and witnessed double-digit growth in imports of semiconductor manufacturing equipment and flat-panel display modules. Traditional industrial bases in the northeast region were revitalized, with imports of automotive parts and agricultural machinery increasing by 4.5% and 62.2%, respectively, both surpassing the national average.

Generally speaking, thanks to its vast market and varied market demands, the Chinese economy is poised to swiftly unleash its market potential, offering sustained support for imports and bringing more benefits to a wider global market. Moving forward, the GAC will follow the guidance of decisions and deployments on boosting the imports of high-quality goods released in this year's government work report and consistently implement various supporting measures. We will also advance quarantine access for high-quality agricultural and food products and expand imports of key components, major raw materials, energy, and resources. More efforts will be made, and more practical measures will be taken to serve high-quality development and high-level opening-up. Thank you.