The Whole Pie of China (not just the filling)

At the time when the 30 anniversary of the establishment of the Sino-European relations is approaching nearer the reporter had an interview with Li Gang, director for the European Study of the Research Institution of the Ministry of Commerce. Now there are still two bottleneck problems in the Sino-European relations, holds Li Gang. One is for the EU to lift the ban of the military sales to China and another is for it to recognize China a complete status of market economy.

The ban-lifting of the military sales to China by the EU, said Li Gang, is in connection with the problem of whether the EU is going to give an equal status treatment to China. If embargo is still practiced in certain sectors towards China it is hard for China to accept it. Since the two sides have already agreed to establish an all-round strategic partnership the military sales should be included in it. If the EU is going to maintain its military embargo on China, it is an untimely practice and it doesn't cater to the target for which China and the EU is going to set up an all-round strategic partnership as reached between the two sides for the present moment.

In view of the complete status of market economy the EU is going to give to China, Li Gang said, though the EU has ruled out the conviction for anti-dumping in some individual cases the numbers are still in the minimum. For the EU to recognize China the complete status of market economy is what the Chinese side is concerned about, for this is where the interest of China does lie. However, the two sides still have some differences on the judgment of a complete status of market economy. The so-called criteria as brought out by the EU are still unable to make China feel completely satisfied. From a personal point of view, though the technical aspect of the problem is important yet what is more important is the problem of the political will. It is hoped that the EU will express its sincerity in political aspect. This will eventually help an effective solution to the problems in technical aspect.

Li Gang also pointed out some problems that China and the EU must pay attention to. The investment to China by the EU medium and small enterprises needs to be further enhanced and in the meanwhile the investment by Chinese enterprises to the related aspects of the EU countries, especially for those enterprises having their own intellectual property rights, and the products and items having their relative superiorities should strengthen their cooperation with the EU in the time to come. In regard of China's bigger trade surplus as against the EU China should take an objective view about it. In view of the trade balance for healthy development, a long time and large-scale favorable trade balance over a definite trading area cannot remain a trend for a long time to come. Therefore, effective measures should be taken to balance the bilateral trade, including the promotion of the dual capital flows and so on.

Chinese President Hu Jintao's just-concluded state visits to three Southeast Asian nations and his attendance at an Asian-African Summit has attained the targets of deepening friendship, promoting cooperation, strengthening unity and seeking common development, Foreign Minister Li Zhaoxing said Thursday.

From April 20-28, Hu conducted state visits to Brunei, Indonesia and the Philippines, and attended the 2005 Asian-African Summit and the Golden Jubilee of the Asian-African Conference in Bundung, known as the historic Bundung Conference, in Indonesia.

Li, who was accompanying Hu on the tour, told Chinese reporters that Hu's trip is of the following characteristics:

Consolidation of traditional friendship, strengthening of relations

During the visits, China and the three Southeast Asian nations reached broad consensus on further development of bilateral relations.

Hu and Sultan Haji Hassanal Bolkiah of Brunei agreed in their talks to continue promoting the development of China-Brunei cooperation.

In Indonesia, Hu and his Indonesian counterpart Susilo Bambang Yudhoyono signed a joint statement on the establishment of strategic partnership between their countries.

In the Philippines, Hu and Philippine President Gloria Macapagal-Arroyo agreed on the establishment of a relationship of strategic cooperation dedicated to peace and development.

These major developments have contributed to bringing China's traditional friendship and relations with the three Southeast Asian nations to a new stage of development.

Strengthening of cooperation, promotion of common development

Hu's three-nation tour saw the signing of nearly 30 cooperation agreements covering a wide range of fields from politics, economy and trade, security, science and technology, culture, public health, disaster relief, personnel flow to non-governmental exchanges.

In particular, Hu proposed that efforts be intensified to promote trade between China and the three nations. He specifically proposed that China's annual trade with Brunei reach 1 billion US dollars by 2010, that trade with Indonesia amount to 20 billion US dollars in two to three years, and trade with the Philippines 30 billion US dollars by 2010.

The mutually beneficial cooperation between China and the these countries will inject new vigor into bilateral relations, benefiting the peoples and promoting national development, said Li.

Promoting regional cooperation, strengthening peace and stability

Brunei, Indonesia and the Philippines are all important member states of the Association of Southeast Asian Nations (ASEAN). Hu stressed that China is willing to strengthen good-neighborliness with ASEAN countries to achieve common development and prosperity and promote coordination over regional and international issues.

Hu also said that China supports the integration of ASEAN and supports ASEAN's efforts to play a leading role in the cooperative process of East Asia.

Hu said China is willing to boost cooperation in East Asia and push forward the process of the China-ASEAN Free Trade Area.

As to the South China Sea issue, Hu said China is willing to shelve disputes and engage in joint development to transform the South China Sea into waters of friendship and cooperation between China and ASEAN.

The leaders of the three Southeast Asian countries all spoke highly of the constructive role China has played in regional issues and expressed their willingness to work with China to create a better future for the region.

New Asian-African strategic partnership

At the Asian-African Summit, Hu set forth China's stance on a New Asian-African Strategic Partnership, saying nations of the two continents can be partners in four aspects: to politically respect each other and support each other; to economically create a win- win situation by pooling each other's strengths; to culturally learn from each other; and to cooperate in security on the basis of equality and mutual trust.

He said developing countries should enhance coordination in international economic affairs and promote South-North dialogue and cooperation so as to deal with the challenges of globalization.

Those proposals have won approval of all Asian and African leaders attending the gathering.

At the summit, Hu also briefed Asian and African leaders on China's economic development. He stressed that China is adopting a scientific concept of development and is striving for sustainable development and a harmonious society.

He said China will stick to a path of peaceful development and commit to world peace.

"Realization of the peaceful and win-win future is our shared historical responsibility and inevitable public outcry," Lien said at the aprons of the Beijing Capital International Airport upon his arrival at about 11:10.

Lien called the KMT delegation mainland visit a "hard-won" one.

China is experiencing rapid growth in its outward foreign direct investment (FDI), but many challenges lie ahead, says Karin Finkelston, mission director of the International Finance Corporation (IFC) in Beijing.

According to IFC, China's total outward FDI averaged more than US$3 billion over the past five years, a level comparable with Ireland and South Korea.

The new momentum is a result of a massive increase in South-South FDI.

FDI from developing countries is gaining importance with its total flow rising from US$16 billion in 1990 to nearly US$100 billion in 2000, before it settled down to about US$45 billion in 2002. It has remained at this level over the past two years.

The glitz and glamour of China's auto sector appear to be fading, especially for domestic non-auto companies.

Some Chinese firms have abandoned their dreams of motoring into the nation's once highly lucrative auto sector.

AUX, the privately owned home appliance producer in East China's Zhejiang Province, announced last month it had withdrawn from the auto sector.

That announcement came a year after AUX unveiled plans to invest 8 billion yuan (US$966 million) to produce vehicles and build, by 2008, an annual production capacity of 450,000 units.

In late 2003, the company paid 40 million yuan (US$4.8 million) to acquire a 95-per-cent stake of an ailing auto firm, controlled by a local government, in Northeast China's Liaoning Province. AUX planned to produce low-cost sport utility vehicles (SUVs).

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