Q: I am with Taiwan's TVBS: There have been certain developments in Taiwan last year, which have affected the business cooperation between the two sides of the Taiwan Straits. As the mainland adjusts its economic structure and as mainland economy slows down, the businesspeople operating on the mainland also run into difficulties.
So my question is what steps will the mainland take to boost the cross-Straits business cooperation, to ensure that the businesses and people from Taiwan can continue to have priority access to the mainland's development opportunities?
A: Peoples on both sides of the Taiwan Straits are members of one big family as long as we continue to adhere to the One-China Principle and 1992 Consensus, oppose 'Taiwan Independence', and uphold peaceful development of cross-Straits relations. We will be able to lay more solid foundation for cross-Straits business cooperation and expand the room for such business times.
To boost the economic cooperation between the two sides, we need to get both wheels in motion: the one wheel is to enhance institution building, for example, to continue to pursue the follow-up consultations on ECFA (Economic Cooperation Framework Agreement); the other wheel is about further mutual opening-up, as far as the mainland is concerned, a closer attention will be paid to the investment made by Taiwan businesspeople on the mainland.
Here I would like to ask you to convey a message to all these people, which I believe will prove to be quite ensuring to them, that the mainland will continue to protect lawful rights and interests of Taiwan businesspeople on the mainland, and continue to pursue preferential policies toward them as appropriate.
In terms of opening-up, we will give priority to Taiwan in terms of both the depth and the intensity of such opening-up steps. We welcome people from Taiwan businesses, including these young people from Taiwan, to come to the mainland to pursue their own careers and business opportunities. We also want to further enhance personnel interflow between the two sides so it can bring the hearts and minds of the two sides' people even closer to each other.
Q: I am with KBS. Last few months of 2014, China's CPI rise was at just about 1.5 percent and in January this year the figure was near 0.8 percent.
So are we to conclude that China entered deflation? Some people also argued that China is exporting deflation to other parts of the world and this has also affected the Republic of Korea, what is your response to it?
A: About deflation, there are multiple criteria in evaluating deflation in the world. A major criterion is the consecutive negative growth of overall consumer prices in the country. Regarding CPI, last January we had positive growth and the figure for February further rebounded. So I don't think we are facing deflation in China.
Recently consumer prices in China have been quite low but China is not exporting deflation to other parts of the world. The truth is, it is at the receiving end of deflation. Let me give you an example. Last year China imported 310 million metric tons of crude oil and about 930 million tons of iron ores from the international markets.
The physical volume has been on the rise but the value contained has declined because of the tumble in the international commodity prices and we are prepared to cope with such a situation and at the same time what we hope more to see is a quicker global economic recovery and the global economy will regain momentum for robust growth.