The Malta Independent 8 May 2024, Wednesday
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Malta And China: as equals

Malta Independent Tuesday, 4 April 2006, 00:00 Last update: about 19 years ago

Were one to look at Maltese-Sino relations superficially one would find it hard to imagine how these two countries could treat each other as equals when they are geographically so distant from each other, and when their respective size and populations are poles apart in dimension.

And yet from day one of our visit to Beijing, it was instantly apparent that the Chinese authorities hold us in such high regard that they are ready to treat us as equals, whether they are talking frankly on international affairs or on the possibility of cooperation in the economic sector.

Our visit coincided with the visits to China of two Presidents: President Putin of the Russian Federation and the President of Romania, who was housed in the same state guest house as we were in Shanghai.

Although this was my third visit to China, the last one being only 11 months ago, I could not but notice the galloping speed with which they are moving ahead, as well as the vibrancy of their economy and the dynamism of their international relations.

I was struck by the comments of two eminent American personalities on China.

While former National Security Adviser Z. Brzinski stated that China shows that the eras of European and Atlanticist domination are coming to an end, US Nobel Prize-winner and economist Joseph E Stiglitz commented on whether the Chinese government should continue to have a key role in its market economy or not.

Arguing that public services and rural areas should be planners’ priorities, Stiglitz said that it would be a mistake if China failed to strengthen the role of the government in coordinating economic development and social policies, adding that there is a risk of China moving from over-emphasising the role of government to over-weakening its role.

According to Stiglitz, a government that understands and performs its functions is essential for the market economy to continue its progress in a harmonious social environment, which is exactly what the Chinese are setting out to achieve: a harmonious society.

The Chinese government has recognised the need for a transition in its role from setting growth targets in the past to building what resembles an institutional infrastructure for a working market economy.

The reason why the Chinese need and want a market economy with Chinese characteristics is because they want to strike a balance between the disparities among the advanced and less developed regions and urban and rural areas, as well as between the rich and the poor, which are necessary for both social and political stability and economic progress.

It is planned that the cities will be absorbing some 300 million farmers in the next 20 years, if the urbanisation drive maintains its annual growth rate of one per cent. This massive migration of rural labourers will contribute greatly to the development of China’s major cities.

One of the most interesting meetings we had was with senior executives of the DRC – Development Research Centre of The State Council. This is a comprehensive policy research and consulting institution directly under the State Council, the central government of the PRC.

Apart from conducting follow up and advanced study on the overall, comprehensive strategic and long-term issues in the national economic and social development of the country, it studies the trends in the development of the economy, studies the industrial policies underway and also studies the new situation and new issues in China’s opening up process, as well as its foreign trade policy and the policy for utilising foreign investment and providing key policy recommendations.

I would particularly like to know what the MTA’s tourism strategy for China happens to be, since while we were in China a study came to light predicting that, by the year 2020, some 100 million overseas trips by the Chinese are envisaged, as the people become wealthier.

Even more interesting is that although at present some 90 per cent of outgoing Chinese travellers visit mainly Asia, it is anticipated that there will be a distinct shift, with the favourite destination possibly moving from the Asia Pacific region to Europe in the process.

Between now and 2010 the country’s overall travel industry is expected to grow at eight per cent per year.

At present, the outgoing figure stands at 40 million people, while last year it stood at 35 million.

China is expected to become the world’s fourth largest source of outbound tourists.

It is not only expected to expand its tourism destinations but is also expected to negotiate simpler procedures in foreign countries.

When Chinese people travel, they tend to love shopping and are particularly keen on fashion and brand items.

My first experience of Shanghai was a culture shock in the positive sense of the word, reminding me of New York City in its dynamism and verve.

We were pleased to meet Maltese entrepreneur Chris Cassar who is currently managing King Long United Automotive Industries Co, which has been described by The Chinese Daily as a global leader in bus production. Even more interesting is the fact that there is Maltese equity in the company he runs.

On a foreign relations basis, we had occasion to discuss a wide-ranging number of issues that covered the Middle East, the Mediterra-nean, Iran and Iraq.

For our part, we emphasised all along that we believe in multilateralism based on a fair international order, while always stressing that there should be full respect for international law in the efforts and actions of both sides.

Globalisation understandably features very prominently on the Chinese agenda, while for them Africa is a magnet both from the political and the economic aspect in the the same way that the EU, Russia and the US are considered strategic allies.

With Japan, strong economic ties make up for the poor political relations between the two sides.

What many people do not know is which three countries are the major investors in China.

These are: Hong Kong, The British Virgin Islands and South Korea.

Over the past 15 years, South Korean companies have been so successful in China that many, such as Samsung, LG and Hyundai, have become inspirations for Chinese enterprises.

When I tried to dig deeper into the affinity between China and South Korea, I was told that they both respect Confucian thought while having developed an intense streak of modernisation in the process.

I would like to take this opportunity to thank the Chinese authorities – including their embassy in Malta – for the courtesy extended as well as for their efforts to ensure that our visit would be a productive one, as it indeed turned out to be.

Malta’s approach to China, both politically and economically, cannot rely on long tried and tested formulae but must instead be innovative and creative.

e-mail: [email protected]

Leo Brincat is the opposition spokesman for Foreign Affairs and IT.

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