POLICY BRIEFING OF THE STATE COUNCIL ON MARCH 20, 2015

Hu Kaihong (host):

Ladies and gentlemen, welcome to the policy briefing of the State Council. Today we have invited Mr Chen Xiaohua, vice-minister of Agriculture, Mr Huang Shengqiang, head of the National Port Office and Ms Yu Xinli, deputy director of the Standardization Administration to brief us more about the latest State Council executive meeting. First let us give the floor to Minister Chen.

Chen Xiaohua:

Good morning, friends from the press. In recent years, China has adopted a series of pro-farm policies, and seen great achievements in agricultural development. However, China also faces huge challenges. Water and land constraints are increasingly felt, non-point source pollution caused by agricultural production is worsening, and agricultural ecological systems are degrading. The old model of agricultural development can no longer be sustained. Having been adopted at the 84 Executive Meeting of the State Council, the National Plan on Sustainable Agricultural Development 2015-2030 is the guiding document for the following period in promoting sustainable agricultural development.

As set out in the plan, the key task of the agriculture development is to transform the inefficient agricultural growth that is resource and input intensive and environmentally straining to a quality-oriented and efficient model that is resource, environment and ecosystem conserving.

The sustainable development of agriculture is a systematic process and we have established clear goals for the future: by 2020, China will have achieved preliminary results and by 2030, we will have made significant achievements in sustainable agricultural development. We will spare no efforts to work on the goals. Thank you!

Hu Kaihong (host):

Thank you, Minister Chen. Let’s give the floor to Mr Huang.

Huang Shengqiang:

Good morning, friends from the press. On behalf of the General Administration of Customs, I would like to brief you about some opinions on improving port management and supporting foreign trade growth.

Ports are the doorways and bridges leading to the world and provide a great reflection of the country’s level of opening up. President Xi Jinping, Premier Li Keqiang and other state leaders have made repeated instructions to improve port management and support foreign trade growth.

The General Administration of Customs have consulted with relevant port administrations and drafted the opinions to improve our work. I would like to take questions later.

Hu Kaihong (host):

Now we give the floor to Ms Yu.

Yu Xinli:

Friends from the media, good afternoon. First I’d like to extend appreciation on behalf of the Standardization Administration of the PRC to you for your long-term support for standardization efforts. The State Council executive meeting held on Feb 11 approved the Reform Program on Further Improving Standardization Work. Now I’ll brief you on the major content of the program.

Guided by the Central Committee of the Communist Party of China and the State Council, the General Administration of Quality Supervision, Inspection and Quarantine and Standardization Administration, along with other departments, drafted the plan. The efforts followed guidelines, including streamlining administration and delegating power to lower levels, while strengthening supervision, meeting international standards and planning the process as a whole. The plan won support and understanding from various departments and local governments. It envisions that a new-type standard system, which enables government-led standards to grow accordingly with market-oriented standards, should be basically built by 2020. Major policies of the plan span six areas.

Yu Xinli:

First, to establish an effective and powerful management and coordination system of standardization. The system, under the State Council, will be led by State Council leaders and consists of heads of relevant departments. It will take charge of major issues and events in standardization.

Second, we will unify and simplify compulsory standards. We’ll integrate the current compulsory national standards, sector standards and local standards into the compulsory grade-one national standards.

Third, we’ll improve voluntary standards and gradually cut the scale and items of such standards.

Fourth, setting up community standards. We encourage institutes, associations, chambers of commerce and industry technology leagues to develop community standards.

Fifth, stimulating enterprise standards. The plan suggests to have companies declare their standards on products and services, which will be under supervision.

Sixth, we’ll actively participate in international standardization activities and help Chinese standards cross borders, so as to lead our products, technology, services and projects going abroad. That will help build a solid brand of Chinese standards in other countries.

The plan covers steps in three phases and clarified the road map and timeline of the reform. Hopefully the media friends can pay more attention and deliver more support to the standardization process and join hands with us to ensure a smooth implementation of the reform. Thank you!

Hu Kaihong (host):

Now, questions please.

Economic Daily:

We have noticed that China is working on the Thirteenth Five-Year Plan for port development and seeking to redefine the term “port”. What is the purpose of the redefinition? Also, the middle and western parts of China have been witnessing higher growth in foreign trade, but there are only 29 ports in those inland areas. Will the new plan bring in anything new to adjust this situation? Thank you.

Huang Shengqiang:

We are now laying out the Thirteenth Five-Year Plan for port development and plan to advance the opening of ports in the following three ways: Firstly, turn ports in coastal areas into water/air hubs and build regional port clusters. Secondly, accelerate the building of ports on key doorways and crossings such as the “One Belt, One Road” and the Yangtze River Delta, by boosting cooperation with other countries. Thirdly, further open up the inland ports and set up more ports along the railways. In doing these three things, we aim to better serve China’s economic development and improve cross-border trade.

The opening and developing of the inland ports is a self-improving process. According to the current definition, a “port” could mean a seaport, an airport, a station, or a cross-border tunnel that allows travelers, goods and vehicles to go inbound or outbound directly. Generally speaking, a port is often located in a seaport, an airport, or on a border between two countries. But some inland cities, such as Zhengzhou, Chongqing, Xi’an, are en route for China-Europe cross-border cargo trains. So strictly speaking, these inland cities should be ports, too. However, the current law still defines a port as somewhere one crosses the borderline directly. That’s why we are setting up “temporary ports” in these inland cities to open these areas up. In our next step, we will seek to amend the law and enact new laws to solve the problem of inland ports, and further open up the inland areas. Thank you.

China Central Television — News:

Minister Chen, I have conducted interviews in rural areas and I discovered that farmers use farm chemicals extensively during the agricultural production and there is careless disposal of animal waste. As a result, agricultural non-point source pollution has become increasingly serious. There used to be many shrimps in rivers in China’s rural areas, but you can’t see any nowadays. In addition, there is still no viable solution concerning agricultural residue and straw burning. My question is: What will the Ministry of Agriculture do to solve these problems?

Chen Xiaohua:

The problems you mentioned just now do exist in rural China and we should make great efforts to solve them. Both short-term and long-term measures are needed to address the pollution in rural areas.

We have set several targets for our efforts in the National Plan for Sustainable Agricultural Development (2015-2030), based on past experience.

We will control the total amount of water for agriculture by drawing “red lines” in terms of total volume and capacity utilization rate. The plan requires that the total volume of agricultural water should remain at 372 billion cubic meters by 2020, while the capacity utilization rate should be raised to 0.55 from the current 0.52. This will be realized mainly by adopting engineering and water-conservancy technologies and encouraging farmers to save water.

We will reduce the total use of farm chemicals. According to the plan, the use of farm chemicals should realize zero growth by 2020. In order to achieve this target, we will prevent or reduce the overuse of farm chemicals and excessive fertilization. At the same time, we will also improve the accuracy of applying fertilizer by agricultural technologies, thus increasing the utilization rate. Additionally, we will encourage farmers to replace farm chemicals with green fertilizers.

Chen Xiaohua:

I think the main problem concerning the use of farm chemicals is to solve excessive application.

We will try to use farm chemicals with a scientific method by preventing the use of high-toxic pesticides and reducing the use of low-toxic ones.

We will modify relevant regulations in order to clarify that high-toxic pesticides can only be purchased at fixed locations using a real name.

We will also ensure that farmers can use high-efficient, low-toxic and low-residue pesticides, by developing scientific technologies and offering subsidies.

Chen Xiaohua:

Concerning solutions for the potential effects of disposal of livestock and poultry on environmental pollution, and to address the recycling of plastic mulches on farmlands and straw burning: we will try to solve these problems by making a reasonable use of resources.

As for animal waste, on the one hand, we will combine the breeding industry with the planting industry, based on environmental conditions.

On the other hand, we will pay attention to the transformation of scale farms, thus taking full advantage of the waste through methane projects.

As for the recycling of plastic mulches on farmlands: first, we will modify the standards concerning the thickness of plastic mulches as it is difficult to recycle the thin ones; second, we will research and develop mulches that can be degraded, and machinery that can handle recycling.

Regarding straw burning, the fundamental solution is to improve resource utilization. First, the most effective way is to return the crop stalks to the farmland; second, we will develop the herbivorous livestock industry by ensiling maize straw; third, we will turn the stalks into a growing medium of edible fungi.

Of course, in order to do so, the key is to establish a whole service system that covers recycling, storage and transportation.

All the above-mentioned pollution concerns endogenous pollution. However, for agriculture, there is also exogenous pollution, which refers to the waste gas, water and residues from urban industrial development. We will take resolute measures to prevent this pollution from reaching rural areas.

Hu Kaihong:

Straw burning is quite complex as it not only causes environmental pollution in rural areas — it is also related to atmospheric pollution in urban areas.

Chen Xiaohua:

We have heard complaints that some farmers will simply burn the crop stalks during the harvest season to save time. This not only causes environmental pollution — it is also a waste of resources. Though some areas prohibit straw burning, the alternative measures adopted are not very good.

China National Radio:

You mentioned “reducing farmland by a moderate degree”. I would like to ask what the “degree” means in various regions?

Chen Xiaohua:

Reducing farmland by a moderate degree, is an important measure put forward by the plan. For places that lack farming conditions or sustainable resources, such as slope cropland with an angle of 25 degrees or above, wetlands, grasslands and lake areas, projects of returning farmland to forests or grassland are needed. For areas whose groundwater has been excessively exploited or severely polluted by heavy metal, plantation restructuring is needed, which means farmers can choose crops with less water-consumption or cut back on certain crops. All in all, the principle is to choose an industrial development model which matches the local resources and environment.

China News Service:

I read the background material provided by the Standardization Administration, it said that the management of standards is “weak”, the standard system is “confusing”, and standard levels are “low”. I want to ask Ms Yu, which problem of these could be solved through this reform program in order to provide the “pass” for “Made-in China” going globally?

Yu Xinli:

This reform is aimed at ensuring the market plays the decisive role in allocating standardization resources and make the government better play its role. Premier Li Keqiang proposed a “delegate, manage and administrate” way to solve the problems in the standardization sector. The Reform Program said that we should streamline administration and delegate more powers to lower level governments. There are 100,000 standards at national, sector and local levels in the current standards system, 70 percent of which are for normal products or services. These standards should be decided by the market while the government-oriented standards should be more focused on public benefits. The Reform Program also suggests to develop group standardization which are not decided by the government but by competent associations and alliances to meet the needs of the market and innovation. On the other hand, there are over 1 million enterprise product standards in China and formerly they were registered and managed by the government. The Reform Program said that we will gradually cancel the registration of enterprise product standards as the enterprises themselves will be major players in this regard.

Yu Xinli:

Second, we will adopt accurate management. Currently we have mandatory standards at three levels: the national, the sector and the local level. The Reform Program said that we will use a unified system of mandatory national standards. It will solve the confusion effectively to ensure that there is only one market with one bottom line and one standard, for mandatory standards are related to areas of personal health, safety of life and property, national security and ecological security. Accurate management has another meaning. There are voluntary standards at national, sector and local levels in the current standards system, 70 percent of which are for normal products or services, which should not be decided by the government and should be left to the society. Leaving them to the society, the government will have more resources and be more focused on developing the national standards, as well as voluntary sector standards for key products, important technologies, important services and big industrial programs. Local standards will be made to adapt to local natural conditions, customs and geographical environment. We will manage better and manage with higher accuracy to solve this problem.

Yu Xinli:

Third, we will adopt unified administration. At the government level, based on the unified deployment and requirements of the State Council, we will work with relevant departments and local government standardization departments to push forward the reform. At the market level, we will let the market decide some standards to maintain its vigor. We will also develop group standards, which are decided by competent associations and alliances. At the social level, the media, customers and the whole society will jointly supervise the enterprise product standards.

By then, we will enter a new era of unified administration at the government, market and social level.

China Radio International:

Mr Huang, what were the considerations on drafting the opinions on improving the management of ports at a national level? And what are the expected results for economic and trade promotion?

Huang Shengqiang:

Regarding the background of the document, I think I have mentioned just now — firstly, ports are very important for boosting the economy and trade. Yet there are problems in our current port operations. For example, work and traffic efficiency is not enough; and there’s lack of coordination and operation among different departments.

Facing the pressure of downward foreign trade, the central government asked to open more ports to the outside world to solve these problems. Thus we introduced such a document, which focuses on solving the current foreign economic and trading problems. Our country has ranked first in trading tangible goods for two years. However, our traditional advantages in foreign trade are decreasing while new advantages have not yet emerged completely. Besides, inland and coastal regions do not develop evenly, so we urgently need to improve how ports work. Here I want to explain several aspects in promoting trade facilitation.

Huang Shengqiang:

First is to improve the port layout in inland areas according to the “One Belt, One Road” strategy, and upgrade the opening of coastal regions. Second is to promote overall clearance integration. Currently there are more than 40 customs points nationwide. Third is to change the pattern of law enforcement. In the past, there were customs; frontier inspections; animal, plant and product inspection and quarantine at the ports. When people came back after going abroad, they needed to go through health inspection, passport inspection, and then the customs. Now we will strengthen the cooperation, which means less procedures — only one declaration will suffice.

Fourth, more administrative approvals and all nonadministrative approvals will be canceled.

Huang Shengqiang:

Fifth, increase the proportion of scanning inspections rather than opening containers for inspection, especially for imported goods containers.

Sixth, irregular administrative charges in import and export sessions will be prohibited. Service charges will be regulated to ease the burden of foreign trade enterprises.

Last, promote paperless inspection to improve declaration efficiency and save costs.

All these measures are serving foreign trade development. We believe they will play an active role in foreign economic and trading development through improving port works.

Thank you.

Kyodo News:

My question concerns the Chinese standards “going global”. What types of standards are China promoting to be international standards? And what are the key areas for these standards? Please give some examples, thank you.

Yu Xinli:

China’s fast economic growth has offered the chance and timing for the country to contribute to international standardization. By referring to Chinese standards “going global”, we mean two levels of connotations.

The first is China’s active role in being part of the making of international standards. The key fields include those with Chinese specific characteristics and those that the international organizations would demand China to contribute to. Actually, China’s involvement in the international standardization is wide and deep.

The internationally acclaimed ISO (International Organization for Standardization), known for being extensive and integrative, has 162 members. China is an active member of 90 percent of ISO’s technical sub-organizations, and is making positive progress toward international standardization.

Like in the area of traditional Chinese medicine (TCM), which we deem as one of the key areas, China is running the secretariat of its TCM International Technical Committee, and has the final say in many of the relevant standardizations.

Yu Xinli:

The second, we take signing contracts on mutual recognition of standards with other countries as another way of Chinese standards “going global”. The mutual recognition means Chinese standards being recognized and applied by foreign countries, or vice-versa.

It also refers to the consensus on standard technical indicators that China reached with another country, and thus the two countries share the same standardization. We have just reached an agreement on mutual recognition of standards with the UK. Now China and the UK share nearly 100 standards.

In the area of consumer commodities, Chinese standards are 90 percent consistent with international standards.

To participate in the making of international standards is one aspect of Chinese standards “going global”, another aspect is to serve international trade. The premise of importing and exporting bulk commodities lies in the unification of standards. The trade volume with these countries will influence our decisions in the process of standardization.

Thank you.

China National Radio-1:

My question goes to Mr Chen. We are aware that the government is emphasizing the importance of the country’s food security. Yet it is becoming shorter and shorter of water and land resources. The environment for agriculture has been damaged seriously along with frequent cases of pollution. How can China guarantee food security for its 1.3 billion people while making sure that agriculture develops in a sustainable way?

Chen Xiaohua:

An effective way to solve the problem is to integrate the protection of the environment with the development of agriculture.

Sustainable development of agriculture means that, on the one hand, we must make sure that we have the ability to guarantee food security for the 1.3 billion Chinese people, and on the other, we must make sure that the country’s agricultural resources are preserved in good condition and can be passed on to future generations.

As a result, we need to change the manner of agricultural development.

The National Plan for Sustainable Agricultural Development 2015-2030 emphasizes the importance of improving ways to develop agriculture in different regions, readjustment of agricultural structure and speeding up the pace of developing eco-agriculture and agricultural recycling industries.

In order to improve ways to develop agriculture, the plan said that different regions should develop agriculture on the basis of saving and preserving their agricultural resources. Different regions should develop agriculture according to the condition of local resources.

Chen Xiaohua:

Readjustment of agricultural structure means integrating farming of crops and farming of livestock. Right now we are conducting pilot programs. This way we can reduce the consumption of water and fertilizer and recycle agricultural resources.

Developing agricultural recycling industries, another method mentioned by the plan, not only protects the environment but also helps economic development. We believe this method will work and we will be able to develop agriculture without having to damage the environment.

China Daily:

My question goes to Ms Yu. As is known, there are inconsistencies between national and sector standards as well as between national and local standards. How will this program solve the problem? Thank you.

Yu Xinli:

The problem you mentioned does exist in the current system and that is just what our reform program aims to tackle. Take mandatory standards for example, which are equal to technical regulations to some degree. These standards at various levels should not be in conflict with each other. The program includes one important measure which is to clear up and integrate mandatory national, sector and local standards.

As to the voluntary standards, besides those managed by the government, we encourage competent associations and alliances to develop group standards that meet the needs of the market and innovation. On the government part, it must strictly define the areas of the voluntary national, sector and local standards systems, so as to avoid any inconsistencies.

Hu Kaihong (host):

That is the end of the briefing. Thank you.