Foreign Ministry Spokesperson Hua Chunying's Remarks on August 6, 2019

Q: On August 5, during US Secretary of State Pompeo's visit to the Federated States of Micronesia (the FSM), he said to the press that strengthening US ties with the FSM, the Marshall Islands, Palau and other Pacific island countries will help counter Chinese attempts to redraw the Pacific in its authoritarian image. The US has begun negotiations on extending respective compacts of free association with each country. I wonder what is China's comment?

A: Certain people in the US recently have been smearing China wherever they go. Now they attempt to drive a wedge between China and Pacific island countries. But such attempt will not succeed. China and Pacific island countries share deep traditional friendship. Our relations are built on mutual respect and equal treatment. When developing friendly cooperative relations with the Pacific island countries in various areas, China pursues the greater good and shared interests and upholds the principle of sincerity, real results, amity and good faith. This is sincerely welcomed by all those countries. People of Pacific island countries have the best say in this. The US, on the other hand, has no right or reason to criticize.

We urge the US to abandon the Cold-War mindset and the outdated zero-sum game mentality, and view China's relations with Pacific island countries in a fair manner. It should make more concrete efforts for those countries' development and regional peace and stability, and stop making irresponsible remarks.

Q:On the early morning of August 5 local time, Egypt's capital Cairo suffered a terrorist attack, which killed 20 people and injured 48. I wonder what is your response?

A: China strongly condemns the terrorist attack in Cairo, Egypt. We deeply mourn for the victims and express sincere condolences to the injured and the bereaved families. China opposes terrorism in all its form. We firmly support Egypt's efforts in maintaining national stability and fighting terrorism.

Q: On August 4, Sudan's Transitional Military Council and the Forces of Freedom and Change initialized the constitutional declaration. Do you have any comment on that?

A: We welcome and support the initializing of the constitutional declaration in Sudan by the Transitional Military Council and the relevant party. China respects Sudan's independent choice of its national development path. We hope relevant parties in Sudan will put the national and people's interests first, advance political transition process through consultation and dialogue, and realize peace, stability and development in the country as soon as possible.

Q: US Department of the Treasury designated China as a currency manipulator, which is the first time since 1994. What is your response? Will there be any countermeasures?

A: The People's Bank of China has issued a statement on US Department of the Treasury designating China as a currency manipulator. In total disregard of facts and the quantitative criteria made by itself, the US labels China as a "currency manipulator" for no valid reason. This is another bad practice to escalate trade disputes after the US announced the plan to impose new tariffs on $300 billion worth of Chinese goods on August 1. Such wayward behavior out of unilateralism and protectionism blatantly tramples on and threatens international rules. It violates multilateral consensus on exchange rate. This will not help resolving China-US trade issues in a reasonable and pragmatic matter. What's worse, it will severely undermine international financial order and obstruct international trade and global economic recovery. China firmly opposes that.

China adheres to a managed, floating exchange rate regime based on market supply and demand and with reference to a basket of currencies. The RMB exchange rate is based on market supply and demand, so there is no currency manipulation. China is committed to keeping the RMB exchange rate basically stable at an adaptive and equilibrium level. Our effort is witnessed by the world. Since 2018, the US has escalated trade disputes several times, but China insists on no competitive devaluation. We have not used and will not use currency rate as a tool to deal with trade disputes.

China urges the US to come back to reason and correct its wrongdoing as so as possible, lest it should further undermine China-US relations.

Q: According to reports, early this morning, the DPRK once again launched two projectiles. What's your comment?

A: China noted the relevant move of the DPRK as well as the joint military exercise of the US and the ROK starting from yesterday. The situation on the Korean Peninsula is at a crucial stage. China calls on relevant parties to cherish the hard-won amelioration, do more to help promote dialogue and ease tensions, ensure the implementation of the political consensus of the leaders as soon as possible and make positive efforts to promote denuclearization of the Peninsula and the lasting-peace there and in the region.

Q: According to people familiar with the matter, Pakistan is seeking support from China and other two developing countries in order to avoid financial sanctions from the Financial Action Task Force on Money Laundering (FATF). there are signs that Pakistan has run short of time to reach the anti-money laundering and anti-terrorism goals. Has China agreed to block the blacklisting of Pakistan?

A: The Financial Action Task Force on Money Laundering (FATF) by nature is an important platform for international cooperation on combating money laundering and terrorist financing. Its aims and purposes are to help countries better crack down on money-laundering, terrorist financing and other illegal activities and prevent the abuse of international financial system rather than sanction or punish any country.

Pakistan has made all-out efforts to strengthen its domestic system on fighting terrorist financing and scored positive achievements. Its political will and positive efforts should be recognized and encouraged by the international community. We hope the FATF will continue to provide constructive support and assistance to help Pakistan improve its system to effectively fight terrorist financing.

Q: Is China concerned that India tries to prevent Huawei from participating in its 5G buildup? Has Chinese officials suggested that Indian companies may face countermeasures if the Indian government puts restrictions on Huawei?

A: Huawei has long been doing business in India and we all bear witness to its contributions to India's economic and social development. Regarding Chinese companies' participation in India's 5G buildup, we hope India will make independent and objective decisions, provide a fair, just and non-discriminatory business environment for Chinese companies' investment and operation in order to achieve win-win results and mutual benefits.