Long Guoqiang:

I would like to give further information. China's outward investment decreased by 42percent in the first half of this year, which attracted a lot of attention. How should we look at the drop? First, it is common for a country to see short-term fluctuations in its outward investment. For example, Germany's outward investment in 2016fell by 63 percent from $93.3 billion in 2015 to $34.6 billion. However, little attention was paid to the major country's decline in outward investment. In contrast, people reacted strongly to China's drop for they are used to see rising lines as a result of the country's continuous and buoyant growth in outward investment for recent years. An overseas M&A project worth $ 46billion, as a matter of fact, accounted for 82% of last year's outward investment. Without such a large project, the figure this year would not have gone down. Therefore, we should look at the short-term fluctuations in outward investment rationally.

Second, at China's present development stage, where its capital account is not fully convertible, it is necessary for the government to manage and regulate cross-border investment. From a macro perspective, any country should avoid the "massive flows" of cross-border capital, which cause many of the once-in-a-decade financial crises after the World War II. Particularly, it is crucial for such a large country like China to maintain financial stability and forestall financial risks. In previous years, investors have questioned the measures that Chinese government had taken to deal with the inflow of the hot money. The outflow of some irrational overseas investment during past two years is a proof of the necessity of macro management and regulation. From a micro perspective, Chinese businesses, which lack professionals and experience in overseas investment, encountered many obstacles in the previous years. In this context, the government's advice and guidance can help the businesses better assess and forestall risks, thus boosting the success of their overseas investment.

Meanwhile, the past decade witnessed the fastest growth of China's outward investment, from $2.85 billion in 2008 to $180 billion in 2016. What's the driving force behind this unbelievable increase? As China's economic development entered into a new stage, Chinese businesses began to invest overseas so as to integrate global resources and play in the global market. Thus, for all the management and regulation measures, China will continue to adopt the approach of "attracting foreign investment" and "going global" and encourage Chinese businesses to invest overseas. Despite the drop in the first half of this year, China's status as a major outward investor will not be changed. Thank you.

CRI:

In the first half of this year, what progress has been made in the economic and trade fields along the construction of Belt and Road? The Belt and Road Forum for International Cooperation in May has achieved a series of important economic and trade outcomes. How have these agreements been implemented? Thank you.

Qian Keming:

The Belt and Road Initiative by President Xi Jinping is a Chinese proposal full of oriental wisdom with a vision to meet the common human dream for peace and development. The Initiative upholds the principles of extensive consultation, joint construction and shared benefits, and features openness, tolerance, mutual benefit and win-win outcomes. It focuses on policy coordination, facilities connectivity, unimpeded trade, financial integration, and people-to-people bond, aiming to build a community of shared future for humanity and deepen the all-round practical cooperation of all participants. Since its launch, the Initiative has been receiving a warm response and widespread praise from the international community.

More and more countries and international organizations are coming to actively participate in the construction of the Belt and Road. In May, China successfully hosted the Belt and Road Forum for International Cooperation, which promoted the construction of the Belt and Road to an all-time high, and created a strong motivation and much positive energy to solve current problems faced by international and regional economies and boost economic globalization.

We have upheld the Silk Road Spirit featuring peace and cooperation, openness and inclusiveness, mutual learning and mutual benefits and deepened economic and trade cooperation with Belt and Road countries and regions. In general, we made achievements in four aspects during the first half of the year:

Firstly, we have deepened trade cooperation. We actively expanded the imports from Belt and Road countries, optimized the trade structure, opened wider to each other and facilitated trade. The China-CEES Investment and Trade Expo and China-ASEAN Expo have served as important platforms for trade. In the first half of the year, China's volume of trade with countries along the routes reached US$511.5 billion, up 11.4 percent on the previous year, accounting for 27 percent of the total, which is also over one-quarter of the total.

We have upheld the Silk Road Spirit featuring peace and cooperation, openness and inclusiveness, mutual learning and mutual benefits and deepened economic and trade cooperation with Belt and Road countries and regions. In general, we made achievements in four aspects during the first half of the year:

Secondly, increased investment cooperation. We have continued to improve the policies and strengthened the investment service, and encouraged companies to invest in the countries along the routes. In the first half of the year, the total investment on the countries along the routes was US$6.6 billion, with contracted projects worth US$71.4 billion, up 38.8 percent from a year earlier. Major projects like the China-Laos Railway and Karachi expressway have been launched. Meanwhile, we have eased rules on foreign investment in order to attract foreign investment from Belt and Road countries.

Thirdly, we have promoted the construction of overseas economic and trade cooperation zones. We have encouraged Chinese companies to operate according to the market and to take development strategy, resources, market demand and other factors into consideration, in a bid to build overseas economic and trade cooperation zones. China-Belarus Industrial Park, China-Egypt Suez Economic and Trade Cooperation Zone, and Thai-Chinese Rayong Industrial Zone all serve as the major platforms for international capacity and equipment manufacturing industry cooperation.

Fourthly, the free trade zone construction is speeding up. We have signed a free trade agreement with Georgia, finished the fourth round of tariff concession negotiations with India, Sri Lanka, Bangladesh and Laos under the Asia-Pacific Countries Trade Agreement, pushed forward the third round of negotiation with the Eurasian Economic Union on economic and trade agreements, as well as the 18th round of negotiations with the RCEP, the fifth round of negotiation with Maldives on a free trade agreement, and the fifth round of negotiation with Sri Lanka on a free trade agreement.

At the Belt and Road Forum for International Cooperation, President Xi Jinping delivered a keynote speech and announced a series of significant measures, while witnessing over 270 agreements conclude. Currently we have made work plans and pushed to implement the agreements one by one. We are turning the outstanding stance of promoting economic globalization into genuine actual actions, and pushing forward the construction of the Belt and Road Initiative to develop its scope and depth.

Xi also announced at the Belt and Road Forum for International Cooperation that China will hold the first China International Import Expo next year. We are now making preparations for it, trying to host a first-class exposition worldwide. Meanwhile, we will properly implement major foreign aid measures and support developing countries in economic development and improve people's wellbeing. We will also properly implement a series of agreements signed with related countries and international organizations to deepen the Belt and Road economic and trade cooperation, and benefit more countries and people with the outcomes of the cooperation. Thank you.

Xi Yanchun:

Thanks again for the spokespersons, and thank you all. Today's press conference ends here.

By Li Xiaohua, Chen Xia, Li Jingrong, Zhang Rui, Zhang Jiaqi, Huang Shan, Duan Yaying, Cui Can, Wu Jin, Fan Junmei, Zhang Liying, Wang Qian, He Shan, ZhouJing, Li Shen, Li Huiru, Yuan Fang

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