The overall impact of the US measures is controllable, and China will steadfastly promote high-quality development of the manufacturing industry - Vice Minister of Industry and Information Technology Wang Zhijun answers questions from reporters on the impact of the new round of tariffs imposed by the US on China

Recently, the United States has imposed a 25% tariff on approximately $200 billion worth of Chinese goods exported to the United States, and under the guise of "national security," suddenly issued trade restrictions against Chinese companies such as Huawei, causing a global uproar.

Will the US containment and blockade of Chinese enterprises and industries be effective? How to view the impact of the new round of tariff increases on China's manufacturing industry? Vice Minister of Industry and Information Technology Wang Zhijun recently accepted a joint interview with news media.

The impact of additional tariffs on China's manufacturing industry is generally controllable

Reporter: What impact will the new round of tariffs imposed by the US have on China's manufacturing industry?

Wang Zhijun: According to statistics, exports of goods worth about 200 billion US dollars to the United States accounted for 41.8% of my exports to the United States in 2018, but only 8% of my total exports to the outside world. To some extent, imposing tariffs will lead to increased operating costs, decreased competitiveness, and reduced orders for businesses, but the overall impact is currently controllable.

It should also be noted that foreign-funded enterprises account for about 50% of the companies affected by the approximately $200 billion tariff increase. Many of these foreign-funded enterprises are American companies, and a large part of their products are marketed in the United States. It can be said that the imposition of tariffs by the United States not only affects the interests of Chinese companies and consumers, but also harms the interests of American companies and consumers, and endangers the security of global industrial and supply chains.

Reporter: The US side stated that imposing tariffs on Chinese goods will lead to some companies relocating from China to other Asian countries, and some American companies will also move back to the United States. May I ask what you think? How does China cope with the negative impact of tariffs on the industrial chain?

Wang Zhijun: Currently, there are indeed some companies relocating or transferring from China to other regions, some due to rising labor costs and other reasons, while others are considering the global business layout of the companies. We have always respected the independent choice of enterprises and encouraged them to make decisions based on their own situation.

It should be noted that China has formed a relatively complete infrastructure and supporting industrial system, continuously optimized the business environment, actively applied new technologies and businesses, upgraded the consumer market, and has broad prospects. It remains the most attractive investment destination in the world.

From January to April this year, the actual utilization of foreign investment in China's manufacturing industry increased by 11.4% year-on-year. Some companies, including Tesla and BASF, are increasing their investment in China. This fully demonstrates the firm confidence of foreign investors in our country's economy. As always, China welcomes foreign enterprises to invest in China, and we will continue to provide a more stable, fair, transparent, and predictable investment environment for foreign investors.

Next, we will further implement the "six stability" policy to help enterprises solve the difficulties they face in the short term; Further promote the comprehensive and high-level opening up of the manufacturing industry to the outside world, continue to deepen the "streamlining administration, delegating powers, and improving services" reform, and focus on optimizing the business environment; Further promote industrial transformation and upgrading, increase efforts in technological transformation of traditional industries, vigorously cultivate and strengthen emerging industries, and promote high-quality economic development.

Breakthroughs in the chip industry will adhere to opportunities sharing, openness, and cooperation

Reporter: How is the development of China's chip industry? What impact will the relevant measures of the United States have on my chip and downstream application industries?

Wang Zhijun: Since 2012, China's integrated circuit industry has grown rapidly at an average annual rate of over 20%. In 2018, the industry's total sales revenue was 653.2 billion yuan, and its technological level has continued to improve.

Currently, China's chip design level has improved by more than three generations, and the HiSilicon Kirin 980 mobile phone chip adopts the world's most advanced 7-nanometer process; The manufacturing process has been improved by 1.5 generations, with the 32/28 nanometer process achieving mass production and the 16/14 nanometer process entering the customer introduction stage; The storage chip has been preliminarily laid out, and the 64 layer 3D NAND flash memory chip is expected to be mass-produced in the second half of this year; The proportion of advanced packaging testing scale in the packaging and testing industry reaches about 30%; Breakthroughs have been made in high-end equipment such as etching machines and key materials such as target materials. Of course, compared with the international advanced level, there is still a considerable gap in the overall design, manufacturing, testing, related equipment, and raw material production of integrated circuits in China.

The integrated circuit industry is a highly internationalized industry, and no country can independently develop the integrated circuit industry. Recently, a series of measures taken by the United States have rudely interfered with the normal order of the international integrated circuit industry, disrupted the normal international division of labor system, reduced resource allocation efficiency and industrial development speed, and disrupted the stable development of the world's integrated circuit industry. These measures are a great irony to its claim of being a market economy system. We once again urge the US to stop unreasonable suppression of Chinese companies on the grounds of security risks, and to provide a fair and just environment for Chinese companies to conduct normal investment, business and other activities in the world, including the United States.

Next, China will integrate into the global integrated circuit industry ecosystem on a larger scale and at a deeper level. Adhere to open innovation and cooperative development, and promote open innovation development in all links of the industrial chain. Adhere to optimizing the environment and sharing opportunities, treat domestic and foreign investment equally, strengthen intellectual property protection, and share the development opportunities brought by the Chinese market with the global integrated circuit industry.

China's industry is stable, improving, and growing rapidly in the mid to high end

Reporter: What is the current situation and characteristics of China's industrial operation?

王志军：随着中央部署的适时适度加强逆周期调节和“六稳”措施的效果显现，货币信贷、社会融资规模保持合理增长、减税降费政策落地实施，极大增强了企业的信心，工业经济运行保持了总体平稳、稳中有进的态势，主要指标保持在合理区间，市场预期明显提升，实现了平稳开局。

从增速看，工业生产总体平稳。尽管4月规模以上工业增加值同比增长5.4%，与3月相比回落明显，主要原因是4月制造业增值税税率下调，一些企业为充分享受抵扣政策，在3月提前备货、增加生产。从前4个月情况看，规模以上工业增加值增速高于全年工业增长预期目标。

从结构看，中高端制造业增长加快。4月高技术制造业增长11.2%，高技术制造业投资增长11.4%，具有较高技术含量和较高附加值的工业新产品产量保持快速增长。3D打印设备、移动通信基站设备等产品产量增速均保持在30%以上。

从地区看，中部地区保持较快增长。4月份中部地区工业增加值同比增长7.7%,比去年同期加快0.2个百分点,高于整体工业2.3个百分点。其中，湖北、江西、湖南工业增加值增速分别达9.6%、9.5%和8.5%。

从预期看，企业发展信心持续改善。全面实施小微企业普惠性税收减免、大幅放宽小微企业所得税优惠标准并提高增值税起征点，清理拖欠民营企业中小企业账款，政策红利逐步释放。4月PMI已连续2个月处于景气扩张区间，企业对未来市场前景总体乐观。

下一步，我们将坚定不移推进供给侧结构性改革，推动落实好减税降费举措，优化供给结构引导释放内需增长潜力，加快培育壮大新动能和优质企业，实现工业经济平稳运行和制造业高质量发展。

将坚定不移扩大制造业开放 加强核心技术攻关

记者：在工业领域，我国会有哪些继续扩大开放的举措？

王志军：按照党中央决策部署，制造业开放步伐不断加快。2018年修订出台的外商投资准入两个负面清单中，开放了飞机、船舶等重大装备，明确了汽车开放时间表，取消了稀土等矿产资源冶炼环节对外资的限制，一般制造业已全面开放。

下一步，我们将持续推进和提升工业领域对外开放水平。一是全面实施准入前国民待遇加负面清单管理制度，落实飞机、船舶、汽车、电信等领域的开放政策；二是推动修订全国和自贸试验区外商投资准入负面清单，进一步缩减负面清单条目；三是扩大鼓励外商投资的领域和范围，推动重大外资项目加快落地实施；四是坚持内外资企业“一视同仁”原则，深化“放管服”改革，全面清理取消负面清单以外领域对外资的准入限制，构建“内外一致”、公平竞争的市场环境。

记者：工信部将出台哪些具体举措加快制造业核心技术攻关？

王志军：此次中美经贸摩擦使我们更清醒认识到，必须持之以恒解决我国关键核心技术“卡脖子”问题。工信部将加强与有关部门的政策协同，积极发挥企业的主体作用，大力推进关键领域核心技术攻关。

一是坚持市场机制与政府作用相结合，发挥市场对技术研发方向、路线选择及各类创新要素配置的决定性作用，同时引导创新要素更多投向核心技术攻关，加快培育一批竞争力强的主导企业和“专精特新尖”的中小企业，大力营造公平竞争的市场环境。

二是坚持产学研用紧密结合，构建全产业链协同创新的生态体系。把提升原始创新能力摆在更加突出位置，加大中央财政对基础研究的稳定支持力度，组建产学研用联合体，推动体制机制创新，开展核心技术攻关。

三是坚持深化开放合作与立足自力更生相结合，更好利用国际国内两种资源提升科技创新实力。我们将不断拓展互惠合作的范围、层次和方式，更高层次地融入全球产业链、创新链。同时做好自力更生、自主研发，努力推动解决制约我国产业发展的重大技术问题。

Information source: Xinhua News Agency

Edited by He Yang