Vice Premier: China, EU "Distant Neighbors"

BEIJING,May6
(Xinhuanet)--China's Vice Premier Wang Qishanhas said
thatChina and the European Union should take a responsible attitude and
demonstrate their common, clear commitment against trade protectionism at the
second China-E.U. high-level economic dialogue.

He made the remarks in an articlepublished by the
New York Timeson Tuesday, titled "Distant Neighbors."

The following is the full text of the article:

The most pressing task facing all countries in the
world today is to restore global economic growth as soon as possible. Yet it is
worrisome to note that the surge of trade protectionism has made the prospects
of the already fragile world economy even worse.

China and the European Union, two major economies and
stakeholders in the world, should take a responsible attitude and demonstrate
their common, clear commitment against trade protectionism at the second
China-E.U. high-level economic dialogue.

Trade liberalization is the engine of economic
growth. It has served as a strong propeller of economic globalization and
benefited people around the world. On the contrary, trade protectionism ¡ª
featuring the pursuit of benefits for one country at the expense of others ¡ª
will only lead to retaliation. It serves the interest of no one.

The world economy paid a heavy price for the
prevalence of trade protectionism during the Great Depression in the 1930s,
which led to the contraction of global trade by two thirds. We should make sure
that the same mistake is not repeated.

Europe is the birthplace of free trade theory, and
the E.U. is the product of successful free trade practices. The removal of trade
barriers promoted formation of a single European market and enhanced development
and prosperity in Europe. As a result, the E.U. has grown into the largest
economy in the world today.

China is firmly committed to reform and to opening
up. Since its accession to the World Trade Organization, China¡¯s market has
become much more open and its trade greatly liberalized. The current overall
tariff level of China is only 9.8 percent. Its average tariff on industrial
products is only 8.9 percent, the lowest among all developing countries. Its
tariff on imported agricultural products is only 15.2 percent, which is not only
lower than other developing countries but also far below that of many developed
countries.

The openness of China¡¯s trade in services has reached
a level close to that of an average developed country. China has taken steady
steps to improve its market economic system and legal system. In particular, it
has made remarkable progress in intellectual-property rights protection, product
quality and food safety, environmental protection and labor security. China has
also taken concrete actions against trade protectionism ¡ª the Chinese government
recently sent Chinese enterprises on procurement missions to Europe and the
United States.

The economies of China and the E.U. have much to
offer each other and our two-way trade holds a huge potential. The E.U. is now
China¡¯s largest trading partner and China is the second largest trading partner
of the E.U.

China and the E.U. should make full use of the
platform presented by the high-level economic dialogue to strengthen
communication and cooperation and jointly oppose trade protectionism. This would
better enable us to tackle the current crisis and promote economic recovery and
growth. It would also reinforce the trend of economic globalization and
facilitates a further growth of two-way trade.

The two sides should work actively to put in place
the agreement reached at the G-20 summit in London, promote early, comprehensive
and balanced outcome in the WTO Doha round negotiations and uphold an open, fair
and equitable international trading regime. An early conclusion of the Doha
round is of symbolic significance to curbing protectionism.

The two sides should further open markets to each
other. China will continue to lower the threshold for market access, improve
trade and investment environment and encourage Chinese enterprises to increase
procurement and imports from Europe.

We hope the E.U. will relax restrictions on the
exports of high-tech products to China, enhance cooperation with China on the
development and application of clean energy, new energy and renewable energy and
support cooperation among our small and medium-sized enterprises. Meanwhile, our
two sides should step up efforts to update the E.E.C.-China Trade and Economic
Cooperation Agreement.

The two sides should work in a cooperative spirit and
properly resolve trade differences and disputes. Each side needs to take proper
care of its own interests. Yet, more importantly, both sides should accommodate
the concerns of the other, taking into full account national conditions and
their stage of development, and steadily broaden the scope of our common
interests.

We should strengthen dialogue and consultation,
refrain from taking protectionist measures and avoid politicizing trade issues.
China hopes that the E.U. will evaluate the conditions of the Chinese economy in
an objective and unprejudiced manner and recognize China¡¯s full market economy
status as soon as possible.

Trade liberalization was, is and will continue to be
the only way to global economic prosperity. The Chinese side is ready to work
with the E.U. and take effective measures to oppose trade protectionism, promote
better growth of China-E.U. trade and jointly move the world economy out of the
current difficulties at an early date.

Chinese Vice Premier leaves for
Sino-EU dialogue, visit Britain

BEIJING, May 6 (Xinhua) -- Chinese Vice Premier Wang
Qishan left here Wednesday for the second Sino-European Union (EU) high-level
trade and economic dialogue in Brussels on May 7 and 8, and to pay an official
visit to Britain from May 8 to 12 at the invitation of British Chancellor of the
Exchequer Alistair Darling.

Wang will co-chair the dialogue with Catherine
Ashton, EU Trade Commissioner and personal representative of the European
Commission President Jose Manuel Barroso, said Jiang Yu, spokeswoman of the
Chinese Foreign Ministry. Full story

Chinese diplomat stresses importance
of pragmatism, shared interests in developing Sino-EU ties

BRUSSELS, April 29 (Xinhua) -- A senior Chinese
diplomat said here Wednesday that China and the European Union (EU) should push
forward mutually beneficial cooperation in all spheres by practicing pragmatism,
keeping in mind the overall interest of the bilateral relations and working
together to promote common interests between the two peoples.

"If we keep in mind the overall interest of our
relations and work together to promote common interest between our peoples, we
will be able to enjoy a closer partnership in the long run, and for next month
to ensure the upcoming Sino-EU High-Level Dialogue and the summit great
success," said the Chinese Ambassador to the EU Song Zhe in a speech at a
seminar on Sino-EU relations in Brussels. Full story

Chinese Vice Premier to attend Sino-EU
dialogue, visit Britain

BEIJING, April 30 (Xinhua) -- Chinese Vice Premier
Wang Qishan will attend the second Sino-European Union (EU) high-level trade and
economic dialogue in Brussels on May 7 and 8 and pay an official visit to
Britain from May 8 to 12.

Foreign Ministry spokeswoman Jiang Yu made the
announcement at a regular press conference here Thursday. Full story

Commentary: Jointly curb flu to save world economy

Special Report:
World Tackles A/H1N1
Flu

Special Report: Global Financial Crisis

A staff member checks a visiter's body temperature during the third phase of the 105th Canton Fair in Guangzhou, capital of south China's Guangdong Province, May 3, 2009. The third phase of the 105th Canton Fair, China's largest trade event, began Sunday with preventive measures against the A/H1N1 flu. (Xinhua/Lu Hanxin)
Photo Gallery

by Fu Yunwei and Ming Jinwei

BEIJING, May 4 (Xinhua) -- At a time when the global
financial crisis still ravages the world economy, the outbreak of influenza
A/H1N1 further adds to the economic woes of a number of countries and regions.
How to jointly control the epidemic and reduce its impact on the world economy
is another challenge facing the international community.

It is an urgent task to cope with the flu to serve
the world economy in an overall and efficient manner. Since it struck Mexico in
mid-April, the epidemic has inflicted prominent fluctuations on the world's main
stock and foreign exchange markets as well as staple commodities like petroleum.

The shock wave can also be felt in some countries'
real economic sectors like tourism, food and transportation. The world economy
is bound to face more grave challenges as long as the flu remains unchecked.

In coping with flu epidemics to protect the world
economy, mankind has both experience and lessons. Historically, we see that the
world economy could be badly wrecked by not only problems like financial and
economic crises but also diseases, wars and environmental deterioration.

The spread of diseases can use up tremendous medical
resources and result in the contraction of production and economic circulation.
Therefore, it is economically significant to effectively put influenza A/H1N1
under control.

Specific measures should be taken to tackle the
epidemic. First, the international community should conduct effective
cooperation to boost public confidence. Only when they have strong confidence
would investors and consumers expand investment and consumption to promote
economic growth. Confidence is needed in fighting both the financial crisis and
the current flu epidemic.

Second, we should handle the flu in a scientific and
proper manner to minimize its impact on international investment. Although the
flu has produced negative impact on the world economy as Joaquin Almunia,
commissioner for economic and monetary affairs of the European Commission, has
said, the international community has accumulated richer knowledge and expertise
in preventing and controlling viruses than before.

In addition, governments have better capabilities in
organizing and mobilizing social resources to deal with epidemics, making them
possible to take scientific, appropriate and farsighted measures to tackle the
flu, which in turn benefits the stability and development of the economy.

With the spread of influenza A/H1N1, the world must
also be alert to protectionism which may arise under the pretext of safeguarding
public health security, since the flu may stir worries over the safety of
products from some virus-hit countries. Necessary restrictive trade measures
should be based upon adequate medical proof.

To tackle the current financial crisis, the
international community has agreed to jointly overcome the hard times, which is
in sharp contrast to what happened in the Great Depression when some countries
implemented extreme selfish policies.

As long as countries continue to boost confidence and
cooperation, people are bound to see the light at the end of the tunnel soon in
both efforts to fight influenza A/H1N1 and secure economic recovery.

The right shift for China's economic development

Special Report:Global Financial Crisis

BEIJING,April 22-- When the severest global financial crisis since the Great Depression directly affects the Chinese economy, economic transition stands out as a crucial measure to surmount the turmoil and create opportunities to ensure China's sustainable economic growth.

However, a black-and-white view of economic transition is not an option. The more critical the transition, the more important a scientific approach on development is needed. We should make clear what to abandon, what to maintain, and what to develop, so that the baby will not be thrown out with the bath water. The following issues should be objectively assessed.

First is the recognition of market principle. In the financial crisis, with the shrinking world market and the diving global economy, the idea of an omnipotent market comes under scrutiny. Policies including government guidance, fiscal stimulus, and employment subsidies are widely applied around the globe. It is without doubt that necessary and effective measures to deal with the crisis and revive the economy as soon as possible are needed.

However, it does not mean one says "no" to the market. On the contrary, only if the policies led by the government are embedded in the market can they act as a pump to refresh the market.

A scientific market economy does not imply simply assigning everything to the market, but rather allowing ways for the private sector to handle itself. Through competition based on market principle, risks can disperse, costs can be reduced, and the optimum allocation of resources can be achieved. When the market fails, government should promptly intervene and correct the errors, to guarantee the rational allocation of resources. This is the basic principle of a scientific market economy.

The financial crisis does not change the scientific nature of the market principle. Rather, the crisis reveals what a reckless violation of the principle can bring. In economic transition, accurately keeping the balance between freedom and intervention, effectively coordinating the relations between market regime and government guidance, and building a scientific development model, are essential in securing the harmonious and stable development of the economy and society.

The second issue is the function of finance. The financial crisis has exposed the drawbacks of American financial capitalism. In the severest stage of the crisis, someone even claimed that "the era of financial capitalism had ended", or "manufacturing is the only protagonist shoring up the economy".

Indeed, manufacturing and services are the main forces driving economic development. Without support from a robust real economy, mere development in the financial sector cannot guarantee overall economic prosperity. Without development of an efficient financial sector, manufacturing and services cannot flourish. Facing this crisis, economic transition should not nullify the functions of the financial sector, but set up a system in which the financial sector plays a more beneficial role in overall economic development.

In fact, until the 1960s, the international transactions of commercial banks were limited in short-term financing for trade, while long-term and large-scale demands in capital were financed by the securities market. After the 1970s, with swift development of international consortium loans, the market functions of banks and securities fundamentally changed, which paved the way for the "securitization" and financial innovation in the 1980s and beyond.

The innovation of financial techniques, the development of operational methods, and the evolution of the financial sector are consistent with the broader trend of world economic development. The financial crisis exposes the ill-applied operational methods and poor regulation, rather than financial techniques. Thus, rebuilding and improving the financial system become the epochal missions of economic transition.

The third point lies in the relations between the global market and the domestic market. The financial crisis has pricked the asset bubbles in the US and resulted in the collapse of consumption bubbles, leading to the shrinkage of the global market. Many believe that the US, the largest market in the world, cannot sustain its status as the engine of the world economy - the US-led unipolar age has ended and dollar hegemony will soon collapse.

Surely the epicenter of the financial crisis is the U.S., whose economy has been violently battered. The over-consumption of the U.S., the root cause of global economic imbalance, must be corrected. However, the status of the U.S. as the core of global technology has not been shaken; New York is still the largest financial market in the world; the international liquidity of the dollar is still the indispensable strategic resource in the global economy; and the fundamental consumption capacity of the U.S. will not crumble. Thus, when crisis countermeasures work, the U.S. will still be the core force leading world economic growth.

The BRIC countries (Brazil, Russia, India and China), with their 2.7 billion people and fast-rising middle class, are forming a mammoth potential market and becoming the new engine of the global economy.

To expand in emerging markets does not mean giving up the traditional market, especially when the transition from a potential market to a real one is a prolonged process. Venturing into new markets and expanding domestic demand are contingent on the formation and accumulation of a national productive force as well as indigenous innovation.

In the age of globalization, technological innovation and the technology industry are increasingly borderless so that no country can lead the sector alone in a single era.

Hence, scientific economic transition requires us to keep three balances: the balance between the global market and the domestic market, the balance between advancing new markets and maintaining old ones, and the balance between indigenous innovation and attracting foreign direct investment to innovate together.

Respecting market rules, following the grand trend of global economic development, and forming the scientific idea of an economic transition determine whether we overcome the crisis and construct a new model of economic development or not.

(Source: China Daily)

Interview: From bicycle kingdom to economic powerhouse

KUALA LUMPUR, April 18 (Xinhua) -- China is preparing its 60th anniversary celebration and a senior Malaysian diplomat says it is worth celebrating as China has scored great achievements.

"The people in China should be proud of themselves for China's fantastic achievements," said Abdul Majid Ahmad Khan, former Malaysian ambassador to China, in an interview with Xinhua here on Saturday.

Majid served as the Ambassador of Malaysia to China since 1998 and he was the longest serving Malaysian ambassador to China when he retired from the post in 2005.

"I have the opportunity to be at the very frontline to witness China's transformation," said Majid.

From a bicycle kingdom to today's economic powerhouse, Majid had witnessed the historic development and transformation of China.

"It was a phenomenal and comprehensive transformation," he added.

During his first visit to China in 1976, the busy streets were filled with people in their blue uniforms. Bicyclists were rushing to work and chasing the sunset after work everyday.

When dining out at a restaurant, the waiters would flicker the lights to signal the closing time at 7:30 p.m. The choices of restaurants and supermarkets were also very limited and not many foreigners were present before China began to carry out its opening-up policy in 1978. His first visit lasted for a week.

He served as the political counsellor of the Malaysian Embassy in China from 1980 to 1985, his second exposure to China. The living standard in China was still low and the private sector had not yet been fully established.

In winter, the locals had to store up on vegetables to get them through the season and, thus, "winter cabbages" came into picture.

Also, during the early years of the opening-up policy, the Chinese were still very cautious when dealing with foreigners. Some Chinese people still had doubts about the changes as they did not know if the changes were for real.

But, when some Chinese leaders began to wear Western suits, "the world knew that China really wanted to change," Majid said.

He said the biggest change when he returned to China in 1998 was the freer interactions between Chinese and foreigners. Besides that, private sectors were also booming and more variety of consumer goods could be found in the markets.

China's urbanization had also created well-designed housing development and more advanced infrastructure, for example, more airlines and modernized airports. Also, the highways development connecting major cities was another significant change planned by the Chinese government.

The year 2009 marks the 60th anniversary of New China's founding. As the most populated country is in the midst of preparing for its National Day celebration, Majid said the celebration is "an acknowledgment by the world".

From a country that was once isolated, China has gone through many reforms and overcome many challenges on its path to play an active role on the world's arena.

"Today, when China is not present at a meeting, I think everyone will miss China. Everyone wants to make sure that China attends every conference on all aspects of development," Majid said.

He also added that China has been a "very important part of the international community" due to its success in economic development and being the manufacturing center of the world. Other than that, the Olympic Games held in Beijing in 2008 had also granted China a global stage to demonstrate its great achievements over the past years.

When asked to compare China's living standard now and a few decades ago, Majid recalled a conversation he had with one of his friends.

"In the early 70s and 80s, when the people in China wrote letters to their relatives in Malaysia, they asked for money and medicines. But now in the 90s, they write different letters. They ask us to come and eat in a big restaurants, or they want to come here as a tourist to Malaysia," recalled Majid.

Apart from that, Majid also said that there are a lot of people from China who came to Malaysia for business purposes. Now, China has the largest Internet users compared to the rest of the world and the travel speed of information is also among the top.

Today, as the world is trying to recover from the financial crisis, China is still reporting strong growth in its economy.