In addition, Shen Danyang also responded to several other hot topics. Regarding rare earth exports, he stated that China's rare earth export policies do not violate WTO rules, and China has appealed against the WTO ruling that China's restriction on raw material exports was in violation of regulations. Concerning Google's acquisition of Motorola, Shen Danyang said that the Ministry of Commerce had not yet received an application for approval of this transaction.
Shen Danyang expressed that the Ministry of Commerce recently issued a draft for cross-border RMB direct investment (RMB FDI), aiming to implement it in September. After implementing the cross-border RMB direct investment measures, two scenarios might occur: from a commercial perspective, some foreign exchange will remain in Hong Kong or other places, with RMB going out and foreign exchange coming in, thus increasing foreign exchange reserves; from an investment standpoint, RMB enters from abroad through investment methods, reducing the growth of foreign exchange reserves. Therefore, the implementation of RMB FDI will not significantly affect the overall foreign exchange reserves, nor will it evidently increase or decrease them.
RMB FDI Implementation in September
Regarding the claim that "African land sales to China cause local famine," Shen Danyang stated that this is entirely baseless and intentionally misleading. He pointed out that China has invested in some agricultural projects in Africa mainly to help African countries improve their agricultural development level and food production capacity. The produced grain and other agricultural products are primarily intended for local African needs, "one can say almost no rice or grain has been transported back from Africa to our domestic market."
During the same period, China's overall outbound direct investment growth rate slowed down. Chinese investors made direct investments in 2,169 overseas enterprises across 117 countries and regions, accumulating non-financial outbound direct investment of $27.63 billion, up by 3.3% year-on-year. By the end of July, China's cumulative non-financial outbound direct investment reached $286.43 billion.
According to Shen Danyang's introduction, in the first seven months of this year, the actual amount of foreign investment utilized in our country exceeded $69.1 billion, up by 18.57% year-on-year. From the source of investment, Asian investment in China increased, while American investment in China decreased significantly.
Slower Growth in Outbound Investment
Shen Danyang indicated that one should not only focus on single-month data regarding trade surpluses. From both absolute and relative scales, China's trade surplus is declining. In terms of absolute scale, the trade surplus dropped from nearly $300 billion in 2008 to over $180 billion in 2010, and it is expected to further decline this year. In terms of relative scale, the proportion of the trade surplus to GDP has fallen from 6.7% in 2008 to 1.44% in the first half of this year, and it is anticipated to decrease further this year. "Countries generally consider a trade surplus-to-GDP ratio around 3% as a reasonable range," Shen Danyang remarked.
Regarding the rebound in the trade surplus in July, Shen Danyang attributed it to two main reasons: first, China's exports to emerging markets like Brazil, Russia, and developing countries maintained rapid growth with significant price increases. Second, international commodity prices experienced a correction in July, leading to a drop in import prices. This rise and fall coincided, resulting in the new high in the trade surplus in July, which carries a certain unintentional randomness.
Data from the Ministry of Commerce showed that in July this year, China's trade surplus was $31.48 billion, growing by 10.3%.
Rebound in Surplus is Unintentionally Random
■ Hot Topics
At every press conference held by the Ministry of Commerce, Yao Jian always answers as many questions from Chinese and foreign journalists as possible. After the conference, Yao Jian, surrounded by reporters, always answers all questions, establishing an excellent reputation.
Yao Jian has consistently been praised by the media for his humble, approachable, and scholarly image. A media outlet once commented on him: "No one can deny that this 'gentleness' is full of sharpness. As a trait, 'gentleness' seems to have become one of his sharp tools, containing meticulous thinking, witty responses, and firm positions."
Yao Jian Answers All Questions
Shen Danyang holds various positions such as part-time professor and invited researcher at multiple domestic universities, including Tsinghua University. He has published numerous papers and research reports in the field of foreign trade and authored nearly ten books. In 2007, Shen Danyang was one of the nine experts in the socio-economic field invited to attend a seminar hosted by Premier Wen Jiabao on the government work report.
Shen Danyang, born in February 1965 in Zhangzhou, Fujian, holds a Ph.D. in Economics and is an expert in international trade, service economy, and China's exhibition issues.
Shen Danyang is Prolific in Writing
■ Impressions
Following convention, the Ministry of Commerce's monthly regular press conferences are usually held in the middle of each month, but this conference was rescheduled to the 24th. Notably, the day before the conference, during the 29th meeting of the 14th Standing Committee of the People's Congress in Qingdao, Shandong Province, the municipal government proposed appointing Yao Jian as vice mayor (on loan). Previously, Yao Jian served as Director of the General Office and Spokesperson for the Ministry of Commerce.
"Dear journalists, good morning. I am Shen Danyang, Director-General of the Secretariat of the International Trade Negotiation Representative and Deputy Director of the General Office, and the newly appointed spokesperson for the Ministry of Commerce." At yesterday's regular press conference of the Ministry of Commerce, the newly appointed spokesperson, Shen Danyang, gave a brief opening.
Change in Ministry of Commerce Spokesperson
■ Highlights
At yesterday's regular press conference of the Ministry of Commerce, a new face appeared—Shen Danyang, the newly appointed spokesperson for the Ministry of Commerce. During his first routine press conference, Shen Danyang answered reporters' questions on hot topics such as the progress of RMB FDI. It is understood that the former spokesperson for the Ministry of Commerce, Yao Jian, has been assigned as vice mayor in Qingdao on loan.