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Interview with H.E. Ambassador Song Zhe

2009. 7 September

(fmprc.gov.cn) Song Zhe: China-EU relationship enjoys a solid foundation and broad prospects. Since the establishment of diplomatic relations, our relationship has been forging ahead, and our cooperation has been expanding. In recent years, our relationship was elevated to Comprehensive and Strategic Partnership. Our cooperation was fruitful in all fields and brings real benefit to our people. We are now most important partners in trade, investment, techonology, international affairs and many other areas.

China-EU relationship is one of the most important bilateral relations in the world. Our cooperation means a lot not only to ourselves, but also to the world. Today, when the international situation is undergoing complex and profound changes, when we are facing global challenges such as financial crisis, energy security and climate change, there is a stronger need for China and the EU to strengthen cooperation in all-round manner.

In the second half of this year, the two sides will hold a series of important dialogues and visits. For example, the 12th China-EU Summit will take place in Beijing at the end of the year. I believe these dialogues and high-level contacts will further push forward our mutually beneficial cooperation and consolidate the foundation of our future relations.

1. Q: Do you think China is too often unfairly and negatively portrayed in the media? Why is that? Is China misunderstood?

A: In recent years, with China's rapid economic and social development and rising international influence, the international media gives more focus on China. Reports and commentary on China is increasing. China is an open society and welcomes foreign media and journalists to report on China. Objective and impartial coverage will enable the outside world to have a more comprehensive understanding of China and a right perspective to problems and challenges China faces in the development process. It will also promote friendship and cooperation between China and other countries in the world. Of course, as some Western media have yet had full understanding of China's national conditions, development and changes, and they are not ready to approach China from Chinese perspective, there indeed exists certain bias and unbalanced view in some China reports. However, I believe with the deepening of China's reform and opening up, and increasingly closer contacts with the world, the international media reports on China will move towards a more comprehensive, balanced, objective and fair direction.

2,Q: Has the success of the Olympics helped create a new image of China?

A:The Beijing Olympic Games, for its excellent organization and quality of service, won the world's applause and appraisal for China. It once again illustrates the Olympic motto of "peace, friendship and progress". During the Olympic Games, hundreds of thousands of athletes and tourists from all over the world set foot on the land of China, saw for themselves today's China. Billions of viewers witness China's development and changes via television and other media. Since I came to work in Europe last year, many European friends have told me that they see a new China through the Beijing Olympic Games, and their impression of China has greatly changed. I believe that the successful hosting of the Beijing Olympic Games has shown the world an open, confident, friendly and responsible China. It brings China and the world closer, making China's image more concrete, real and rich.

3. Q: The world is looking to China for economic help in ending the recession. China's GDP is expected to grow 8.5 percent in the third quarter this year, and there are signs its stock market is lifting. Will that help lift the world out of the recession?

A:This year, especially since the second quarter, the Chinese economy is stabilizing and showing a strong momentum of growth. In the second quarter, China's GDP grew by 7.9%. For the first half of the year, the figure was 7.1%. This is because the Chinese government responded to the crises quickly and took a series of effective and resolute measures. We introduced a package of stimulus measures and constantly augmented and improved this package during its implementation. However, China's economic rebound is not yet a stable, solid or balanced one. One can not be blindly optimistic. There is strong pressure from declining external demand. Excess production capacity is a prominent issue in some industrial sectors. It is hard to boost domestic demand overnight. The short-term policies did help dampen the impact of the crisis, but it will take longer time to see the effect of the mid and long-term policies. To consolidate the momentum of economic stabilization and recovery, the Chinese government will maintain policy continuity and stability. We believe that when we do a good job for China's economy, we also contribute to the world economy. We will collaborate with other economies to strengthen cooperation, maintain open market, resist all forms of protectionism, so that we will jointly overcome the difficulties caused by the financial crisis.

4,Q: China has had delicate relations with the European Union over trade, especially EU claims of widespread intellectual property theft, much of it visible and in the open on the streets. Why can't China stop the practice?

A:Above everything, let me say that "widespread intellectual property theft" in China is a false allegation. China puts much effort intellectual property protection, not only to improve the investment environment and enhance level of opening up, but more importantly to enhance the capability of innovation and build an innovation-based economy. To date, China has already established an legal system protecting intellectual property rights that is consistent with international conventions, and also well-adapted to domestic development. China is strictly enforcing intellectual property law and protects the legitimate rights and interests of the IPR holders of all countries. In 2008, China promulgated an "Outline of National Intellectual Property Rights Strategy". With that, intellectual property becomes a key component of national development strategy, which demonstrates our determination and confidence in its promotion and protection. IPR protection is a global issue that requires all countries to work together. China and the EU have set up a special dialogue mechanism in this field and carried out fruitful cooperation. The Chinese government attaches great importance to the concerns of foreign enterprises over intellectual property rights and is willing to provide support and assistance. Foreign companies may file in IPR cases either to China's IPR Protection Service Center or to a Chinese court to safeguard their own legitimate rights and interests. A few days ago, a local court in China court ordered severe criminal penalties in the case of "Tomato Garden" computer software piracy. This reflects the determination of China's judicial system to combat infringement and protect the interests and rights of IPR holders. Reuters, Financial Times and other mainstream media reports that this case is a milestone in the process of protecting intellectual property rights in China.

5. Q: Is China is a country that shoulders its responsibility?

A: The Chinese government has always taken a highly responsible attitude for the common interests of mankind and made long-term commitment to world peace and development. It is playing an increasingly important role in the international arena. To safeguard world peace and regional stability, we work together with other countries, international agencies and regional organizations, including the European Union, to actively promote peaceful settlement to the Korean Peninsula nuclear issue, Iranian nuclear issue, Palestine and Israel conflict and other international hotspot issues and regional conflicts. To promote common development, we actively provide assistance without any conditions to more than 160 countries and regions, to the best of our ability. We have trained 18,000 management and technical personnel for developing countries, reduced or cancelled debt owed by some developing countries with a total of more than 16 billion yuan. To promote sustainable development in the world, we uphold the "common but differentiated responsibilities" principle on the issue of climate change, and although China is still caught in high demand of industrial emission and hit by the international financial and economic crisis, we voluntarily set emission targets, vigorously develop the high-cost green and clean energy and make all effort as we can to address climate change.

6. Q: How would you characterize the relationship between the European Union and China, especially when there is so much tension and a previous summit had to be postponed because of differences?

A: China-EU relationship enjoys a solid foundation and broad prospects. Between China and the EU, there is no conflict of fundamental interest or major issues left over from history. Since the establishment of diplomatic relations, our relationship withstood the test of time and was generally featured by comprehensive, wide-ranging and multi-level cooperation. Last year, there were some ups and downs. But thanks to our joint efforts, our relationship was brought back on the right track. Today, the international situation is undergoing complex and profound changes. In face of the financial crisis, climate change and other global challenges, there are many new and historical opportunities for us to further develop our cooperation. In the second half of this year, the two sides will hold a series of important dialogues and visits. For example, the 12th China-EU Summit will take place in Beijing at the end of the year. I believe these dialogues and high-level contacts will further advance our mutually beneficial cooperation and consolidate the foundation for our future relations.

7. Q: The EU is China's biggest trading partner and China is the EU's second biggest trading partner and you have a nearly 170 million Euro trade surplus with the EU. Doesn't that put you in a position of strength to dictate trade terms?

A: China-EU economic and trade cooperation has always been anchored on the basis of equality and mutual benefit. The EU is China's largest trading partner, export market, source of imports and supplier of technology. The EU occupies a very important position in China's foreign trade. The Chinese government attaches great importance to economic and trade cooperation with the EU. The two sides have set up more than 20 dialogue and cooperation mechanisms in trade and economic fields. Moreover, in 2008 China and the EU established a high-level economic and trade dialogue at the level of vice-premier. The Chinese side will adhere to the spirit of friendship and cooperation, continue promoting cooperation in various fields, and consolidate the economic base of China-EU comprehensive and strategic partnership. With regard to trade imbalance, I would like to point out that there are many reasons for this phenomenon. The most important cause is the relocation of international industry and trade. China, with its policy of reform and opening up, has attracted a lot of foreign investment, and a large number of processing and assembly facilties have been moved to China from other Asian, especially East Asian coutries. Exports to the EU by these countries becomes China's exports. At the same time, the EU-funded enterprises in China have a considerable proportion of their output going to local sale, which to a large extent replaced the EU's direct export to China. In 2006 alone, the turnover of EU-funded enterprises in China reached 206.6 billion U.S. dollars, much higher than the EU's 91.7 billion U.S. dollars of trade deficit with China. In addition, the implementation of the EU's high-tech export restrictions, as well as differences in trade statistics methodology are also factors which can not be ignored. China is a big and open market. It is also the fastest-growing market for EU export. From 2004 to 2008, the EU export to China increased by 65%. This year, China has organized several trade and investment promotion delegation to Europe, in order to expand import, investment and trade cooperation with relevant countries. Such concrete actions demonstrate China's position to maintain and expand open market, and work with other partners to cope with the crisis. With continued economic development, optimized industrial structure and growing private consumption, China will continue to expand import. To achieve trade balance, we hope that the EU enterprises will actively explore the Chinese market, and the EU will take the initiatives to relax export restrictions to China.

8. Q: What does China hope to show the world when Shanghai hosts the 2010 World Expo and an estimated 70 million visitors, especially in terms of being environmentally-friendly?

A: The theme of the 2010 Shanghai World Expo is "Better City, Better Life", with a focus on harmonious integration of people, city and Earth. We hope that the Expo will provide visitors from around the world an opportunity to know China better, to understand better the importance of sustainable development, and to explore together models of sustainable urban development and ecological civilization. China will strive to make the event environment-friendly and share with the world the concept of sustainable urban development. We wish people will be more aware of and devoted to environmental protection and sustainable development. At the same time, we hope to show the world what China has achieved through reform and opening-up what a progressing and civilized society China is today.

9. Q: Why is China still so dependent on coal, especially now that it has conquered a third of the world market for solar cells and will build 100 gigawatts of wind turbines by 2020? Companies like Suntech are becoming world powers.

A:The choice of a country's energy consumption pattern is largely determined by the country's natural resources endowment. Coal is China's most abundant energy resource. Coal accounts for 90% of China's total primary energy. Therefore, China's energy consumption will have to depend on coal for a considerable time in the future. Nevertheless, the Chinese government has been trying to optimize the energy structure and reduce the proportion of coal in total energy consumption and increase the proportion of clean energy such as hydropower, wind power, solar energy and nuclear power. Coal accounts for 69% of energy consumption in 2008, a significant decrease from 95% in 1952. In the meantime, the Chinese government attaches great importance to coordinated development of energy and environment, and strive to explore ways of clean coal consumption, in order to minimize the adverse effects on the environment.

10. Q: Is the world expecting too much of China? Earlier this year, when you spoke about the Europe and China Strategic Dialogue, you noted that China has 1.3 billion people but its GDP per capita ranks below 100th in the world, but it doesn't have enough natural resources, has 10 million people living in poverty, needs to create 30 million jobs a year and its development has many structural problems. How can those staggering numbers be overcome?

A:The world should have confidence in China, but that confidence must come from in-depth and comprehensive understanding of China. China faces enormous pressure for development. The data mentioned in your question is a proof. But China is also facing unprecedented development opportunity. China is a country with a population of 1.3 billion. It is undergoing rapid industrialization and urbanization. The upgrading of consumer and industrial structure, infrastructure construction, social undertakings, environmental protection and ecological construction will generate tremendous demand. China today has one of the greatest market potential in human history. In addition, after 30 years of reform and opening up, China has a strong material and technological base, full-fledged industrial system, abundant social capital, a labor force of more than 700 million people and expanding talent pool, more than 20 trillion RMB private savings, and strong capacity in production and supply. Given a huge demand, strong supply, political and social stability, China's economy will continue to maintain rapid development for a long period. To answer this question with one sentence: The world should have greater expectations for China!

11,Q: Are the differences in culture between Europe and China too much for their to really be a common ground of understanding?

A:The Chinese and European civilizations have different origins and distinctive features. However, there is also much in common. In many literature and works of art, we can find mutual influence between us. For two thousand years, we have drawn upon each other and developed in parallel, and cultural exchange has become an important source of friendship between the two peoples. Due to our different history, tradition, ideology and stage of development, China and the EU do have different views on some issues. In our culture, we advocate harmony without uniformity, which I find, is consistent with Europe's respect for diversity. I think we should approach our differences from sensible point of view and in rational manner, follow the overall direction of the development of our relations, uphold the spirit equality and mutual respect and find solutions through dialogue and cooperation. By doing so, we will be able to enhance mutual trust and build between us harmony without uniformity.

12. Q: Why doesn't China get credit for the good it does: more than 30 billion US dollars in assistance to other developing countries and pledging to cancel all outstanding debts of the 46 Least Developed Countries which were to mature at the end of 2008?

A:As the world's largest developing country, while achieving its own development, China keenly appreciates the desire of other countries to achieve development. China has always done what it can to provide assistance to a large number of developing countries, especially the least developed countries under the framework of "South-South Cooperation". In September 2008, Premier Wen Jiabao announced on behalf of the Chinese government six new commitment at the UN High-level Meeting on Millennium Development Goals. China would cancel the outstanding interest-free loans of the least developed countries due by the end of 2008, apply zero tariffs to 95% of all products imported from the least developed countries, assist developing countries to build small-scale clean energy projects and agricultural technology demonstration centers, help train professionals in health and education service. China's assistance is based on full respect for the sovereignty and the wishes of the recipient countries, the projects are mostly infrastructure and social welfare projects much needed by the recipient countries. It has produced significant and positive results in terms of poverty alleviation, driving economic growth and improving people's livelihood. It is welcomed by the local government and people and wins the acclaim for China. If some in the West have different views, that is due to not having sufficient knowledge of the size, effectiveness and impact of China's foreign assistance.

13. Q: Why does China deal with countries with notable human rights problems, like Sudan and Myanmar? Given the aid you give them and the business relationships, can't China put more pressure on them to reform?

A:The five principles of peaceful coexistence is the basis on which China develops friendly relations with other countries, conduct economic and trade cooperation, promote common economic development. The Chinese Government has always advocated respect for and protection of human rights. The concept of human rights has its universal nature, but it is also closely related to the specific circumstances, such as history, culture, politics and economy of a country or a region. There are no absolute or uniform standards. It is the people that are entitled to choose and decide the path of development and political process of their country. Outside pressure will not solve the problem. China has always provided constructive support and assistance to country concerned for the purpose of achieving national reconciliation, peace, stability and development, on the basis of respect for the sovereignty and territorial integrity of that country. China never imposes its will on other countries, still less will it take economic cooperation as a tool of political pressure.

14. Q: China has become the world's largest polluter, but says the west has been polluting for generations and now expects China to almost instantly meet new environmental standards. Is that a fair criticism? You noted that by 2007 China had reduced emission of 500 million tons of carbon dioxide.

A: Since the industrial revolution, human activities, especially the developed countries, consume a lot of energy and resources in the industrialization process. These results in the increase of greenhouse gas density in the atmosphere and the phenomenal change of global climate for the past 50 years, featured mainly by global warming, and produced a severe adverse impact on the global environment and ecology, and brought about severe challenges to survival and development of human society. Based on the historical responsibility of developed countries, and also the principle of "fairness", the United Nations Framework Convention on Climate Change establishes the principle of "common but differentiated responsibilities". This principle is the foundation for international cooperation on climate change. As a responsible developing country, China attaches great importance to addressing climate change and has adopted a series of policies and measures which has made remarkable achievements. For example, China is implementing the national energy-saving emission reduction targets under the "Eleventh Five-Year Plan"(from 2006 to 2010). That will enable China to reduce CO2 emissions by 1.5 billion tons. This target is the most ambitious among all national emission reduction program across the world and marks China's the largest contribution to the global effort. China will continue to make unremitting efforts to address climate change.

15. Q: You said this year that "Some European friends said to me, it is a miracle that China could have made such great achievements in development by going along its own way." Were they right?

A: From the outset of reform and opening up, China has all along strived to build what we call "Socialism with Chinese Characteristics". 30 years later, history and reality proves that the road of Socialism with Chinese Characteristics is a right choice. It is in line with China's national conditions. It has effectively mobilized the nation towards economic prosperity, cultural rejuvenation and social harmony. In the last 30 years, China's GDP grew by an average annual rate of 9.8%, three times that of the world's average at 3%. Last year, China's GDP exceeded 30 trillion yuan (about 4.4 trillion US dollars), ranking third in the world. At the same time, China has also made remarkable achievements in building political culture, democracy and the rule of law, improving science and technology, education, medical and health services. Its comprehensive national strength has significantly increased and its international status keeps rising. This road of development is supported by the people. The policy of reform, opening up and scientific development is favourably appaised by the people. The international community has also become increasingly aware of the rationality and necessity of China's own choice of development model. I recall that former U.S. President George W. Bush said, " China has the right to choose its own course. "

16. Q: How much has the problem of tainted and dangerous products – toys, milk, pet food and others – hurt China's reputation?

A: Although China has achieved rapid economic development, and people's living standard has been significantly upgraded, it is undeniable that we are still a developing country at the primary stage of socialism, and in the development process, we will inevitably encounter this or that problem. What is important is that the Chinese government upholds the creed of putting people first and working for the people, gives top priority to the interests and well-being of the people. The government strives to identify problems promptly, handle them properly and solve them proficiently. And by strengthening socialist democracy, legal system and moral standards, we work hard to prevent similar incidents from happening again. Social development is not like smooth sailing, and in the development process, the outside world should give more support and understanding to China.

17. Q: Is nuclear the way out for China? You have only 11 nuclear reactors now, 14 under construction and another 10 about to start, and by the year f2020 you could get 60 gigawatts of power from nuclear.

A: To expedite the development of nuclear power is one of the focuses of China's energy development strategy. At present, China has entered a rapid development period in terms of peaceful use of nuclear energy. It has set up a quite comprehensive nuclear industrial system, equipped with considerable installed capacity and power generation volume. Nuclear energy is playing an increasingly important role in the national economic development. Meanwhile, China attaches great importance to nuclear safety, established a relatively complete nuclear safety regulations, supervision and emergency response system which has ensured safe and reliable operation of nuclear facilities, and achieved a good nuclear safety record. But nuclear energy will not be the leading energy for China's future. The development of renewable energy, such as wind energy and solar energy, will be a more workable solution to future energy demand.

18. Q: Since 2000, China has been on an unrelenting path of building its military, the defense budget soaring from USD 14.6 billion to 70.27 billion this year. Why? Who must China defend itself against?

A:China adheres to peaceful development. In accordance with the principle of coordinated development between national defense building and economic construction, China makes reasonable funding to defense expenditure. In recent years, China's incremental defense budget is mainly spent on improving the military's living conditions, a moderate increase of equipment and facilities to upgrade defense capabilities based on information technology, and emergency response capacity building in military disaster relief, counter-terrorism and other non-combat operations. In 2009, China's defense budget accounts for 6.3% of the national fiscal budget; in fact its proportion has decreased slightly compared to previous years. As a big country with 1.3 billion people, 9.6 million square kilometers of land, more than 300 million square kilometers of waters under jurisdiction, China's input in national defense, compared with other major world countries, are still relatively low. China's national defense expenditure is only about 1.4% of its GDP. By contrast, the ratio for the United States is more than 4%. Britain, France and some other countries have a ratio of more than 2%. China's limited military power is aimed at safeguarding national sovereignty and territorial integrity and will not pose threat to any country.

Source: www.fmprc.gov.cn