We understand that you have previously held posts in larger countries such as Denmark. Could you tell us how different it has been for you to work in a small but independent country such as Malta, which has always maintained excellent relations with your country?
I worked as the Economic and Commercial Counsellor of the Chinese Embassy in Denmark for more than five years. The work I did there is quite similar to what I am doing in Malta: promoting bilateral economic cooperation and trade relations. Like Denmark, Malta also enjoys good relations with China. Given their different backgrounds, in Malta we have paid more attention to increasing mutual understanding between the Chinese and Maltese business communities. More and more Chinese enterprises - in sectors such as energy, telecommunications, logistics, infrastructure, etc., are expected to invest in Malta and I hope that more Maltese enterprises will go to China to establish their business.
How long have you been in Malta and how do you perceive economic and trade relations between China and Malta?
I have been in Malta for almost three years. China and Malta are close friends and our good partnership augurs well for long-term cooperation. The long-standing relationship between Malta and China is healthy, confirmed by the fact that bilateral trade volume reached $1.64billion between January and October this year, according to China's statistics.
In July 2014, Maltese Prime Minister Joseph Muscat paid a successful visit to China, witnessed by the fact that he and the Chinese Prime Minister Li Keqiang signed a Memorandum of Understanding on a five-year, medium-term Cooperation Plan between the Chinese and Maltese Governments, which points out the direction for practical bilateral cooperation. Five areas have been listed as the focus of cooperation in the MOU: infrastructure, energy, air services, financial services and R & D. We are pleased to see that there has already been some positive progress.
In May, our Vice Minister for Commerce Gao Yan led a delegation to Malta and, together with Economy, Investment and Small Business Minister Dr Christian Cardona, chaired the 10th China-Malta Joint Commission on Trade and Economic Cooperation. The two sides exchanged views on issues of common concern such as implementing the consensus reached by the leaders of both countries, linking the economic development strategies of both sides under the framework of 'One Belt, One Road', expanding trade and investment, strengthening practical cooperation and deepening China-EU trade and economic relations. An extensive consensus was reached.
The 'One Belt, One Road' initiative, put forward by President Xi Jinping in 2013, has received active responses from many countries, including Malta. In the same year, Malta joined the Asian Infrastructure Investment Bank as one of its 57 founding members. China is ready to work with Malta to develop our bilateral cooperation and is very confident about the broad prospects. We also expect that Malta will continue to play a positive role in advancing the development of China-EU relations.
Since you have been in Malta there has been considerable investment in the energy sectors. Do you expect additional investment from China and, if so, could you elaborate on the sectors in which this might happen?
Chinese investment in Malta has grown rapidly in recent years. The cooperation between Shanghai Electric Power and Enemalta was a new highlight that injected new vitality into the practical bilateral economic cooperation. Nearly two years after concluding the agreements, we have seen great success and benefit for the parties involved. Shanghai Electric Power has successfully taken its first step into the European market and is in the progress of localisation. Enemalta has become a stronger company with profitability. The electricity price has been reduced significantly, benefiting both the domestic and commercial consumer in Malta. The conversion project of the Delimara Power Station Phase 3, which will soon be completed, will help Malta upgrade its power-producing industry and better protect its environment. Shanghai Electric Power and Enemalta are combining their respective areas of expertise and jointly seeking more renewable energy projects in other European countries.
There is also a strong will on both sides to further strengthen cooperation in other areas, such as health and medical care, infrastructure, construction and real estate, tourism, financial services, bio-technology, air services, aerospace and aviation. Huawei, a leading Chinese company in global information and the communications solutions market, has opened an office in Malta and signed MOUs with the Maltese government on ICT research and development in Malta and the Maltese government has signed an MOU with Beijing Caissa, an international travel service provider, with the aim of bringing more tourists from China to Malta.
Along with the continuous development of China's economy and upgrading of its industry structure, more and more Chinese companies are investing overseas. So far this year, Chinese non-financial overseas direct investment amounts to $145.96 billion, an increase of 53.3 per cent year on year. The Chinese government will continue to encourage Chinese companies to invest abroad, including in Malta and I believe that the companies of both countries will benefit from the new opportunities.
Much has been written about China's immense importance being due to its 'One Belt, One Road' concept. Can you elaborate on what the One Belt One Road is and what it aims to achieve? Can you also say how Malta will benefit from it?
as the 'One Belt, One Road', is an initiative of President Xi Jinping during visits to Central and Southeast Asia in 2013. Its aim is to promote the orderly and free flow of economic factors, the highly efficient allocation of resources and the deep integration of markets by enhancing connectivity between Asia, Europe and Africa.
The 21st-Century Maritime Silk Road - a sea route rather than a road- runs west from China's east coast to Europe through the South China Sea and the Indian Ocean, and east into the South Pacific. The aim of the sea route is to build efficient transport routes between major ports in various countries, including the development of an economic corridor through the Indian Ocean, providing better connection for China with South Asia, the Middle East, Africa and the Mediterranean.
It calls for policy coordination, facilities connectivity, unimpeded trade, financial integration and people-to-people bonds to make complementary use of the participating countries' unique resource advantages through multilateral mechanisms and multilevel platforms.
The Silk Road Economic Belt is a route designed to connect China with Central Asia and Eastern and Western Europe. It will link China with the Mediterranean Sea, the Persian Gulf, the Middle East, South Asia and South-East Asia. The aim of the land route is twofold:
- to build a "Eurasian land bridge" - a logistics chain from China's east coast all the way to Western Europe; and
- to develop the economic corridors connecting China with Mongolia and Russia, central Asia and South-East Asia.
The Maltese government has demonstrated its readiness to be part of the new Maritime Silk Road, and has clearly stated that Malta strongly supports the Silk Road projects and is committed to work hand-in-hand with China in building a 21st-century Maritime Silk Road across the Mediterranean. I am pleased that Malta is one of the 57 founding members of the AIIB, and I believe that Malta - the heart of the Mediterranean with a unique geographic condition - can play an important role in and benefit from the new opportunity.
Press Question Five
We understand that on the 14th of this month, a delegation from the Canton Fair - the biggest fair in the world - will be visiting Malta and that there will be an important event at the Malta Chamber of Commerce. What benefits do you think exist for Maltese companies that attend the Fair and, on the other hand, what benefits are there for Maltese exporting companies to participate in the Fair?
The China Import and Export Fair, also known as 'the Canton Fair', is an important channel for China's foreign trade sector and a demonstration of China's opening-up policy. It plays a key role in advancing the development of China's foreign trade and the economic and trade exchanges between China and the rest of the world and is renowned as China's No. 1 Fair.
It is co-hosted by the Ministry of Commerce and the People's Government of Guangdong Province and organised by the China Foreign Trade Centre. It is held every spring and autumn in Guangzhou, China and since its establishment in 1957, has enjoyed the longest history, the largest scale, the most complete product variety, the best business turnover in China and the biggest buyer attendance from the broadest range of countries for 120 fairs. The 120th Canton Fair, concluded on 4 November, attracted 185,704 buyers from 213 countries - figures that reflect its huge commercial value and its important contribution to global trade.
Focused on international market demands, the Canton Fair is a comprehensive and specialised trade event. It exhibits over 150,000 categories of quality products, from both China and overseas. About 24,000 outstanding enterprises from all over the world participate in each fair. Recently, the official website and mobile APP have been upgraded and the new product and exhibitor search system covers all 50 sections and nearly 25,000 exhibitors, meaning that buyers are able to search for exhibitors and products more conveniently.
The International Pavilion, opened for the 101st fair to promote a balanced growth between import and export, has been held for 20 sessions. In the 120th session, there were 998 stands in the International Pavilion, with 615 enterprises from 40 countries and regions participating. In the coming 121st session, the total exhibition area will be 20,000 sq. metres. The fair will continue to adopt a professional and market-based approach, invite more overseas exhibitors and enrich marketing campaign. The Fair will also increase promotion of the International Pavilion, pool resources, and improve the experiences of overseas exhibitors.
Maltese companies, including exporters, are expected to establish import and export relations with potential trading partners via the platform, at the same time obtaining a better understanding of China through this window - the epitome and symbol of China's opening-up. I believe the Maltese companies attending the Fair will have a successful and fruitful visit.