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Recent Visitors
Stable Development of Sino - Dutch Relationship
2009. 25 September
Speech of Ambassador Zhang Jun at Dragon Cocktail Organized by NCH Mr. Haakma, Chairman of the board of NCH,
Ladies and Gentlemen,
Firstly, the recent positive signs have shown that the stimulus package of China in tackling the financial crisis has achieved initial results. However, we are still facing a very difficult task in the recovery of China's economy. Early this year, when the global economy, including the economy of China was in its most difficult time and deep concerns for the gloomy future was everywhere, I predicted with full confidence that China would be one of the first countries to come out of the crisis when participating an event organized by NCH. After more than half a year, we do witness some positive changes. The world economy is beginning to recover slowly. China's stimulus package also achieved initial results and we have curbed the downturn in our economic growth. In the first half of this year, China's GDP grew by 7.1 percent. The GDP growth of the second quarter of this year even reached 7.9 percent. According to the latest statistics released by National Bureau of Statistics, the consumer price index (CPI) and the producer price index (PPI) of August increased by 0.5 percent and 0.8 percent respectively compared with that of July. In the meantime, the PPI has been increasing for 5 consecutive months. What is more important is that domestic demand is playing a stronger role in driving the economy forward, and employment situation is becoming increasingly stable. Judging from statistics of the past 8 months, we can draw the conclusion that our macro-economic policy and the stimulus package have proven to be timely, forceful and effective. We have full confidence in achieving the goal of 8 percent GDP growth which was set early this year.
At the same time, we are fully aware that the stabilization and recovery of China's economy is still very fragile and not yet steady, solid and balanced. This can be reflected in the following four aspects: Firstly, with many uncertainties remaining in the world economy, we still face huge pressure of the decline in external demand. Secondly, we are under various constraints in expanding domestic demand in the short term. Thirdly, some industries and businesses remain in a difficult situation, and the task of economic restructuring is very difficult. Fourthly, the effect of some of the stimulus measures will wane, and it will take time for those long term policies to show effect. Therefore we still have a long way to go to achieve full economic recovery and we can not be over optimistic. More importantly, our stimulus package is not only aimed at overcoming short term difficulties, but also ensuring long term development. The purpose is to fundamentally solve the institutional and structural problems constraining the sound growth of China's economy, to promote economic restructuring and industrial upgrading, to accelerate scientific innovation, to improve people's livelihood and narrow the gap between urban and rural areas and among various regions. While ensuring stable GDP growth, we have to work hard for a better economic structure, improved development model and mature development concept so as to lay solid foundation for the sound and sustainable development in the future. For this purpose, we will continue to follow the proactive fiscal policy and moderately easy monetary policy. We will implement the stimulus package fully and incorporate new elements into it while necessary. We will promptly identify and address new problems in the economy. We will make our policies more targeted, effective and sustainable. By doing so, we hope that our economy will continue to maintain fast and steady growth and our country's social stability and harmony will be further promoted.
Secondly, the international community should continue to join hands and strengthen cooperation in fighting against the financial crisis. China opposes all kinds of protectionism in trade and investment. With the fast development of globalization, the world economy has become one whole and our fate has become more and more interrelated. No country can achieve development of its own without the development and prosperity of the global economy. It is unrealistic to hope one can be immune from the current global recession. Each country, while focusing on its own development, need to shoulder its international responsibility and obligation and join hands with the rest of the world. We must fight against all forms of protectionism and restrictive measures. Protectionism will only hamper recovery of world economy and jeopardize the interests of the businesses and people of all countries. As for China, we resolutely oppose any kinds of protectionism in trade and investment. Both in fighting against the current crisis and in promoting long term economic development, China will firmly stick to the opening up policy. This position will not change. We hope the world to be a dynamic one, instead of being standstill. We honor our commitment with action. Since the outburst of the crisis, China sent several trade and investment promotion missions to Europe and the US to boost trade and investment cooperation. We also take some positive measures in stabilizing and using foreign investment, especially in introducing advanced foreign technology and experience. Just as premier WEN Jiabao clearly pointed out, foreign enterprises enjoy national treatment in China. They will be treated equally before our stimulus package. No matter at present or in the future, foreign investment in China will not be affected by the crisis. The economy of both China and the Netherlands are export oriented. We are playing a leading role in promoting free trade and fighting against protectionism. China is willing to strengthen coordination and cooperation with the Netherlands. We also look forward to joint actions from all other countries in tackling the crisis and seeking for common development.
Thirdly, the financial crisis created severe challenges to Sino-Dutch economic and trade relations, meanwhile it also created new opportunities in deepening our cooperation. China views Sino-Dutch economic and trade cooperation as an important basis of our bilateral relations and attaches great importance to this cooperation. Although the financial crisis negatively affected our economy, it also enables us to seek sustainable and sound cooperation at much higher level and on a wider range of areas. China-Dutch economic and trade cooperation are now faced with great momentum of further development. On one hand, the Netherlands is quite advanced in areas such as clean energy, agriculture, water management, environment protection, education, medical and health care and social insurance. These are areas to which China attaches great importance and they are on the top list of our further development. China may learn a lot from the Netherlands' rich experience and practice. We can complement with each other in these areas and benefit greatly from the existing and potential cooperation. On the other hands, we both have strong political will in deepening economic and trade cooperation. Mme. van der Hoeven, Minister for Economic Affairs, has just visited China and signed a Memorandum of Understanding with China on energy cooperation. Mr. Eurlings, Minister for Transport, Public Works and Water Management, will be in China in a few days. Mr. Heemskerk, Minister for Foreign Trade Affairs, will be heading a delegation of entrepreneurs to visit China in November. I am also glad to share with you that a large investment and trade promotion delegation from China will visit the Netherlands before the end of this year. With these contacts, the Sino-Dutch economic and trade relations are now faced with very strong momentum and I am sure the future is bright. What is even more important is that our cooperation has produced win-win results. I'll give you one example. According to figures from Statistics Netherlands (CBS), Export of Dutch products to China have increased strongly. In July, exports to China were dozens of percent higher than in July of last year. I am fully confident for our continued close and sound cooperation. I sincerely hope that entrepreneurs in the Netherlands can seize this opportunity and be more forward looking. I hope you can continue to participate actively and constructively in the opening up and development process of China. I also hope you can explore new potentials of our cooperation in the future while expanding traditional areas. By doing so, you will contribute greatly not only to our economic and trade cooperation but also the long term development of our bilateral relations. I believe both sides will continue to benefit from each other's development.
Fourthly, making the Shanghai EXPO another good opportunity in deepening our ties and pushing for a stable and sound development of Sino-Dutch relations. The 2010 Shanghai EXPO to be held next May will be also an important opportunity for deepening our bilateral ties. The Shanghai EXPO is another important event held by China after the Beijing Olympic Games. Altogether 241 nations, international organizations and entities will take part in the exhibition. More than 70 million visitors will be attracted to Shanghai. We cherish this opportunity. Both the Chinese Government and the city of Shanghai are making every effort to present to the world a successful, splendid and unforgettable exposition. Meanwhile, the EXPO belongs to the whole world too and it is more meaningful in the current circumstances. A successful EXPO will greatly boost people's courage and confidence, which are extremely important in fighting against the financial crisis and rejuvenating the world economy. As far as I know, Prime Minister Balkenende will attend the opening ceremony of the EXPO. Prince Willem-Alexander also expressed his strong desire to attend the opening ceremony of the Dutch pavilion. All these demonstrate the importance the Netherlands attaches to the EXPO. Now the Dutch Government, provinces and cities, industrial and commercial circles all demonstrate great interest to the EXPO. Huge human and financial resources have been invested and various activities during the EXPO are now under careful preparation. The Dutch Pavilion "Happy Street" not only embodies the wisdom, creativity and innovation of the Dutch people, but also demonstrates the common desire of people all over the world for a happy and peaceful life. I firmly believe that the Dutch pavilion and various activities organized by the Netherlands in Shanghai will be the highlight of Shanghai EXPO. I firmly believe the EXPO will be another good opportunity for us to consolidate political trust, deepen economic and trade cooperation, strengthen cultural and personnel exchanges. I also believe the Shanghai EXPO will be a new starting point for the stable and sound development of our bilateral relations. I warmly welcome you all to go to China and attend activities held during the EXPO. I myself and my embassy are willing to provide all kinds of assistance and support in this regard.
Thank you.
Source: www.fmprc.gov.cn