Speech by H.E. Ambassador Mr. Xin Shunkang at the Seminar at SARDC
May 3, 2012
Madam Johnson, Director of SARDC,
Hon. Mr. Shamu, Minister of Media, Information and Publicity,
Dear professors and scholars,
Ladies and Gentlemen,
Good Morning! It is my great pleasure to attend today’s seminar. First, I would like to thank Madam Johnson for organizing this event. She is such a good friend. We make frequent exchanges of views on China-Zimbabwe relations, and she always brings me inspirations. Today, upon her request, I want to share with you some information about China and Sino-Zimbabwean relations.
First, let me say something about the economic miracle of China.
Most of the guests in this room have been to China. You saw the development of China. But do you now what kind of miracle China has made during the past 30 years? Let me give you some figures.
1. GDP: In 1978, the year before China conducted reform and opening-up, China’s GDP was 215.3 billion US dollars. But in 2011, the figure was 7.4 trillion.
2. Growth rate: China’s economy has maintained 9.9% annual growth in the past 33 years.
3. GDP in the world: In 1978, China’s GDP accounted for 1.8% of the world total, yet in 2011, the figure was 10%. According to the ranking of world economy, we were the tenth in 1978 and emerged as the second in 2010.
4. GDP per capita: GDP per capita rose from 190 US dollars in 1978 to 5400 US dollars in 2011, with an annual growth of 9.7%.
5. Trade volume: Total value of trade in goods was 20.6 billion US dollars in 1978 and 3.64 trillion in 2011, up 175 times in merely 33 years.
6. Foreign exchange reserve: China’s foreign exchange reserve was 167 million US dollars in 1978 and the figure exceeded 3 trillion in 2011, with a two digit growth annually.
7. People’s income: Urban disposable income per capita and rural net income per capita were respectively 343 and 134 Yuan RMB in 1978, but in 2011, those figures increased to 21800 and 6977 Yuan RMB.
8. Urbanization rate: China used to have a large agricultural population. In 1978, our urbanization rate was 18%, but in 2011, the figure became 51%, with an annual increase of 1%.
The above data implies a well positioned Chinese economy, with well-paced growth, stabilized prices, sustainable efficiency and improved standard of living.
China is a large and responsible member of the global community. In this role, China has contributed a lot to world economic development. For instance, China’s 10 years of WTO membership saw its annual imports grow by nearly 100 billion US dollars.
Second, let me share some experiences of China’s development.
1) Strong leadership of the Communist Party of China. As the main leading party, CPC has always been insisting on its principles, guidelines and policies. CPC is a party that comes from the peoples, takes root among the people and serves the people. Putting the people first and governing for the people win it the most extensive, reliable and solid popular support.
2) Reform and opening-up. Reform and opening up constitute a great new revolution carried out by the people under the leadership of CPC in the new historical stage. They are a critical choice that holds the future of the contemporary China. Only by doing so, we will create a strong momentum in advance our scientific development.
3) Blueprint for development. As early as 1979, Deng Xiaoping proposed the economic and social developing strategy at the early stage of China’s socialism. Entering into the new century, China declared the target to build a well-off society in an all-round way. Now China adopts the 12th Five Year Plan. Chinese government firmly implements all the plans and keeps China’s development on the right pace.
4) Scientific development. Over the three decades, China has evolved its own growth mode that aims to achieve development through scientific approaches based upon China's national conditions and the international situation. The essence of such a growth mode is to seek a balance between development, stability, equity and clean environment.
5) Ruling the country according to law. In March 2004, China issued the Implementation Outline for Pushing Forward Administration by Law in an All-Round Way, and announced the goal of basically realizing a law-abiding government in 10 years. We should establish the thought of governing by law and enforce legal knowledge education so as to improve the administrative level, for it is one of the guarantees of China’s development.
Next, please allow me to brief you the contribution of China’s development to the world.
1) Engine of world economic growth. China maintains business and trade ties with 163 countries and regions. Take Africa as an example. Trade volume between China and Africa increased tremendously, from 10 billion US dollars in 2000 to over 160 billion US dollars in 2011. China has signed 10 free-trade-zone agreements, bilateral investment treaties with 129 countries, and double taxation avoidance agreements with 96 countries. To honor its commitments to the WTO, China has reduced its total tariff rate from 15.3% before its entry into the WTO to the present 4.4%, and abolished most non-tariff measures. China enjoys a market with huge potential which generates historic opportunities to the entire world. At the same time, the Chinese government encourages Chinese businesses to go global. At present, there are more than 2,000 Chinese companies making investment in Africa. Last year, China’s direct investment overseas exceeded 60 billion US dollars. By late 2011, Chinese investors had set up 18,000 businesses in 178 countries and regions with a value of 322 billion US dollars and created more than 1 million jobs. China’s investment to African countries has roared from 490 million US dollars in 2003 to 14.7 billion US dollars in 2011, covering such fields as mining, financing, manufacturing, construction, tourism, agriculture, forestry, animal husbandry and fishery.
2) Stabilizer of world economy. As a responsible player, China made its utmost efforts to work with the rest of the world to weather the financial crisis and stabilize the global economy. What is worth mentioning is that China has directly contributed to the stability of the Euro Zone. From April 20 to 27, Chinese Premier Wen Jiabao visited Europe and announced a 10 billion US special credit line in infrastructure, technology and green economy.
3) Provider of foreign aid. By the end of 2009, China had given assistance worth RMB 256.3 billion to 161 countries and over 30 international and regional organizations, reduced and canceled 380 debts incurred by 50 heavily indebted poor countries and least-developed countries, trained 120,000 people for other developing countries, and sent 21,000 medical personnel and nearly 10,000 teachers abroad to help other countries. For example, to Zimbabwe, in the past three years, China gave over US$60 million grant. The figure doubled than the previous three years.
4) Guard of world peace. China has dispatched about 21,000 personnel on 30 UN peacekeeping missions, which is the highest number among the permanent members of the UN Security Council. China takes an active part in international cooperation in anti-terrorism and nonproliferation. For instance, China deploys naval escort fleets to combat piracy in the Gulf of Aden and off the coast of Somalia. Moreover, China provides humanitarian aid and dispatches rescue teams to countries hit by severe natural disasters.
5) Upholder of justice. We respect the right of the people of other countries to independently choose their own social system and path of development, and do not interfere in other countries’ internal affairs by hegemony and power politics. China calls for settling disputes and conflicts through talks and consultation, not by military invasion. That is why China always constructively and actively takes part in the international affairs.
6) Promoter of a harmonious Asia. We call on countries in the region to respect each other, increase mutual trust, seek common ground while putting aside differences, safeguard regional peace and stability, and settle disputes including those over territorial claims and maritime rights and interests through dialogue and friendly negotiation. For instance, China has helped to establish the Six-Party Talks mechanism on the Korean nuclear issue; it also has made a constructive proposal to "shelve disputes and seek joint development" to uphold peace and stability in the South China Sea and the surrounding areas.
7) Contributor of world diplomatic theory. In the past decade, China and Africa have worked together to build the new type of strategic partnership featuring political equality and mutual trust, economic win-win cooperation and cultural exchanges. Together, we have opened a new chapter in China-Africa cooperation. Such partnership plays a major role in guiding and promoting the development of China-Africa relations and also contributes to the establishment of a new diplomatic theory.
In March, 2012, the Chinese National People’s Congress passed the report of the government, which outlined the work of the government this year. It said that the year 2012 is just as challenging as 2011. The downside pressure is mounting in both China and elsewhere in the world. The world economy is likely to slow down further. In its latest World Economic Outlook, the IMF cut the global growth forecast. In addition, the report highlighted the threat of the Eurozone debt crisis to the world economy. China is certainly not immune to global economic uncertainties. In addition, China must also confront its problems at home.
However, China’s policy is firm and clear. Firstly, China will secure macroeconomic stability and at the same time seek sustainable growth through ambitious structural reform. Secondly, China will focus on steady growth, keep a tight control on inflation, and maintain social stability. At the same time, China will seize opportunities to further transform its growth model.
During the fifth session of China’s 11th National People’s Congress in Beijing in March, Premier Wen Jiabao delivered the Report on the Work of the Government and announced overall economic goals for 2012 as follows:
Firstly, a realistic economic growth target has been set at 7.5% for 2012, consistent with the overall target of 7% for the 12th Five-Year Plan. This signals China’s structural transformation towards the quality, efficiency, and sustainability of the economic development.
Secondly, a proactive fiscal policy and a prudent monetary policy will remain the core of the macro-economic control. In so doing, economic growth is expected to remain balanced and within inflation target.
Thirdly, China will accelerate the transformation of economic pattern to an “organic growth” with a focus on the strengthening of the real economy and the reinforcement of a balanced, coordinated and sustainable growth.
Fourthly, China will strive to improve the overall people’s living standards. We will do everything we can to address public concerns about jobs, welfare and public services. We will give greater priority to job creation, education, medical services, social security, and public housing programs in overall budget allocations.
The above noted four goals are China’s primary economic focuses in the near term.
Meanwhile, China is committed to an opening-up policy and a win-win strategy for the world. In the 12th Five Year Plan period from 2011 to 2015, China prepares to import a total of 8 trillion US dollars in goods and services.
Ladies and Gentlemen,
Finally please allow me give you a brief introduction of the Sino-Zimbabwean relations. To tell you the truth, I will soon finish my mission in Zimbabwe and leave for China on May 11. Fortunately, my two year and eight months in Zimbabwe saw ever growing development of relations between our two countries.
First, China and Zimbabwe enjoyed frequent high-level exchanges, which helped to deepen our political mutual trust. Last year alone, there were more than 50 ministerial-level Chinese delegations visiting Zimbabwe, and more than 20 high-ranking Zimbabwean officials visiting China. Earlier last month, Chinese Vice Premier Hui Liangyu paid an official visit to Zimbabwe. He had fruitful meetings with your state leaders and witnessed the signing of several bilateral cooperation agreements.
Secondly, we had satisfying results in mutually-beneficial economic cooperation. Our bilateral trade volume exceeded 800 million US dollars in 2011, having climbed to a record high. Our win-win cooperation in areas such as mining, agriculture and infrastructure yielded good results. During the past 3 years, Chinese government provided over 60 million USD grant, and 300 million USD concessional loans to Zimbabwean government. And with those grant and loan, we conducted the following projects:
1. The orphanage school is under construction and has just passed the mid-term inspection.
2. The decorations for the National Sports Stadium were completed in 2010. The Chinese side is planning to provide more funds for interior decorations.
3. The construction of national defense college is almost completed.
4. Netone telecommunication project is under construction.
5. The Victoria Falls Airport Expansion Project is about to start.
We also use the grant to implement the following-up measures of the Forum of China Africa Cooperation:
1. Two primary schools, located in Harare and Bindura respectively, have been handed over to Zimbabwe.
2. The agricultural technology demonstration center was put into use and it will be operated by the Chinese side in the first three years.
3. The construction of the China-Zimbabwe friendship hospital was completed.
4. This March, the Chinese government dispatched 5 agricultural experts to work in Zimbabwe. Another 10 agricultural technicians are coming to Zimbabwe.
5. China will build another secondary school and primary school for Zimbabwe. The two projects are under implementation now.
6. The solar power project, the borehole drilling project and the mini-hydropower station project are underway.
For donations in kind, there were more than 20 occasions. For instance:
1. 14 million USD worth urgent food aid.
2. 8.5 million USD worth vehicles.
3. 2.4 million USD worth agricultural machineries.
4. 200,000 USD worth office supplies to the parliament.
5. 50,000 USD worth musical instruments to Bulawayo College of Music.
6. 50 computers to the media.
7. The 20 million RMB worth medical equipment.
8. 200,000 USD worth carpets.
9. An 8-channel HD OB van.
10. A batch of neonatal resuscitation mannequins.
The above is the cooperation between two governments. While we are enjoying it, our businesses circles are also doing a great job. Chinese companies have engaged in the fields of infrastructure, agriculture, telecommunication and mining. Beside doing business, Chinese companies shouldered firm social responsibilities.
1. Anhui Foreign Economic Construction Cooperation has provided more than 5000 employment opportunities for local people and sponsored China-Zimbabwe Friendship Brightness Trip to visit Zimbabwe twice. Its mining company Anjin spent more than 80 million USD to build a beautiful relocation area, with 474 modern houses of 3 rooms and separate kitchen and toilet facilities inside. In the relocation area, more than 45 kilometers of tarred roads have been completed. Primary and secondary schools, clinic, water pumping and purification station and other infrastructure have been built.
2. Upon establishment of Zimasco in 2007, Sinosteel only sent 3 Chinese people to work in Zimasco management team and employed more than 3000 Zimbabwean people directly. Another 6000 Zimbabwean people were indirectly employed as contractors of the company.
3. Tianze Tobacco conducts contract farming in Zimbabwe and buys a large amount of tobacco at a high price from the local market every year, which benefits thousands of tobacco farmers in Zimbabwe. Tianze also provids financial support to more than 100 orphans, sets up a primary school for Betrice Farm and provids study materials and food to an orphanage in Harare.
4. Sino-Zimbabwe Cement Company has provided more than 500 employment opportunities for Zimbabwean people. It has built roads for local communities. Every year, the company spends 50,000 USD in donations and other charity activities for local people.
5. Huawei Company has provided more than 2000 employment opportunities for Zimbabweans. It provides donations to local orphanage almost every month. Recently, the Company donated computers to local schools.
Thirdly, our people-to-people exchanges brought tangible benefits. The brightness trip visited Zimbabwe twice in four months, having conducted 824 cataract extraction surgeries for Zimbabwean patients free of charge. China Disabled Peoples Arts Troup came to Zimbabwe twice and gave fabulous performances “My Dream”. From 2009 to 2011, the Chinese government has provided around 120 scholarships to Zimbabwean students and trained nearly 900 Zimbabwean officials. There are 5 Confucius classrooms in Zimbabwe to teach Chinese and that number is growing. I often meet people in the streets who can greet me in Chinese.
As I leave this country, I achieved some full stops in my work; there are still quite a few commas and unfinished business. But with friends like you, I am confident of our friendship. I am confident of the bright future of our relations.
Last but not least, may I wish our friendship last forever, and our cooperation bears more fruits.
Thank you!