What are the main features of the new government's economic policy?

At its 18th National Congress last year, the Communist Party of China launched a new roadmap for future economic growth. The key elements are to deepen economic reform and change the growth model, aiming   for green development. Earlier this month Premier Li Keqiang made a keynote speech at the Summer Davos Forum in Dalian where he outlined the new government’s three-pronged approach. The first is to keep macro-economic policy stable giving consideration to both immediate and long-term needs. The second is to pursue reform and open up with priority given market stimulation. The third is to readjust and optimise the economic structure emphasising transformation and upgrading.

Instead of single-minded pursuit of speed and quantity, the new “China style” will focus more on the quality of growth and making it more cost-effective. It will strive for the balanced development of industrialisation, information technology, urbanisation and modernisation of agriculture. Both market and private capital will be allowed to play a bigger role. It will try to reduce the degree of dependence on investment and exports, focusing more on domestic consumption and innovation as the new driving forces of economic growth.

We also intend to reduce our dependence on coal-fired electricity generation, switching to renewable energies, even though our per capita greenhouse gas emissions are far below those of developed nations. We will live up to our commitments relating to combating climate change.

What is meant by the 'Chinese dream' underlying the new government's innovative diplomatic strategy? And how would this apply to relations with Malta and the Mediterranean region?

The Chinese Dream is in fact not new, there have been many variations in our recent  history. It is about a strong, independent and democratic China and derives from the deep aspiration for China’s revitalization following a century of humiliation and suffering since the First Opium War in 1840. As set out by President Xi Jinping, the Chinese dream means national prosperity and revitalization as well as happiness of the people – a dream for a better future, better education, housing, medical care, social safety as well as a call for action.

In foreign relations, China will open even more widely to the outside world, continuing to develop friendship and cooperation with all countries on an equal footing. China sees Malta as a valuable friend in the Mediterranean and the EU. Malta also has its dreams, striving for a better life for its people as well as greater influence in regional and global affairs. We appreciate Malta’s aspirations and are willing to further enhance our collaboration in various fields to aim for the realisation of our respective dreams.

Regarding Taiwan, we are immensely grateful that Malta has always upheld the One China policy and has also been supportive to the development of relations across the Taiwan Strait. Taiwan is an inseparable part of China and this has been acknowledged by the overwhelming majority of the world's nations. Over past years, relations across the Strait have improved substantially with the establishment of postal, telecommunications, air and sea links as well as trade and tourism flows. The Chinese government has put forward a series of preferential policies for Taiwan companies doing business on or exporting to the mainland. We have no objection to countries such as Malta having diplomatic relations with mainland China to developing unofficial business or cultural links with Taiwan.

The Prime Ministers of China and Malta agreed at their meeting at the Davos Forum to draw up a five-year co-operation plan. What prospects do you see arising?

The meeting was very fruitful and constructive, both agreeing to develop a stronger China-Malta relationship and exchanging ideas on strengthening co-operation in various sectors.

I believe there is a huge potential in our bilateral cooperation. China does not have any vested interest or hidden agenda. China will not do anything with Malta that only benefits China, let alone harm the interest of Malta. The principles guiding our bilateral cooperation of any sort are equality, mutual respect and mutual benefit.

I emphasise that China is deeply grateful to Malta for evacuating 5,000 workers from Libya –  agreeing to do so three hours after requested while other countries hesitated – and for donating 100 tents for the subsequent earthquake in the South. In our culture we say “if you give me an inch I will give back a yard”.

There is for example the Maltese government's idea for a bridge connecting Malta and Gozo. The China Communications Construction Company with a wide experience of long bridges stands ready to do a feasibility study.

Other industrial sectors can be identified. For example, in July 2011 the British company Arriva was entrusted with the reform of Malta's public transport system and it opted for 174 buses made by the King Long Company in Xiamen, China, which have given trouble-free service ever since. This was a typical success of tripartite cooperation between Arriva, the Maltese government and China’s King Long Company. It would have been quite difficult for the King Long company itself to break into the EU market due to many restrictions. But cooperation with a third party opened up the way. King Long’s success can be copied in the future by other Chinese companies when seeking cooperation with Malta.

So do you see further developments in the transport sector?

Of course there is the possibility that more such Chinese products will be imported to Malta. Now electric cars are leading the future. Malta is moving in this direction and has launched a pilot programme for electric cars. China has advanced technologies in this respect. We may also look towards cooperation in the aviation and maritime industries. The cooperation may not necessarily be restricted to aeroplanes or ships, but can also be extended to technologies and services. China has achieved rapid progress in these areas recently. It will be very helpful to communicate and collaborate with Maltese counterparts, especially so in maritime affairs considering Malta’s rich experience in this field.

 As regards the Memorandum of Understanding relating to China Power Investments and Enemalta signed earlier this month, do you see this type of investment as a new style of bilateral co-operation... could there be other investments of this kind?

The MOU signed by the two Prime Ministers provides the groundwork for further negotiations for a win-win cooperation in energy. Discussions will be conducted over the next six months. The manufacture of photovoltaic panels in Malta is one idea, there are also alternative ideas such as helping Malta increase its PV use, (that is of imported panels) and supporting the setting up of a Mediterranean region energy co-operation centre.

The MOU can be seen as a new type of bilateral cooperation between China and Malta though China has had similar cooperation with many other countries. Past co-operation projects, like the Grand Harbour Dry Dock, the Serenity Garden at Santa Lucija and the Chinese Medicine Clinic in Paola, were mostly characterised by unilateral aid and assistance. The energy MOU however is a purely commercial act, which features co-operation on an equal footing and mutual benefit. I am aware that recently there are some concerns or even doubts about China’s intentions through press reports or comments by people from different circles.

I would like to say that now we are all living in a global village. No country can achieve full economic development without international cooperation. China’s economic miracle is a case in point. As China develops it would like to share her technology and know-how with the outside world so as to achieve a win-win result.

Further to the visit of 26 Chinese business leaders to Malta and the Malta Enterprise-sponsored visit of Maltese business leaders to China last year, how do you see business relations evolving?

I have no doubt there will be more business delegations coming to Malta to explore cooperation possibilities and also the other way round. Two visits are in prospect in the near future – The Beijing Women Entrepreneurs' Association and the National Industrial and Commercial Association. We also support the efforts of the Malta-China Chamber of Commerce to become more active.

The bulk of our bilateral trade comprises machinery and electronic products. Last December a delegation headed by the chairman of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products visited Malta and signed an MOU for cooperation with Malta Enterprise. The two sides had a very good exchange of ideas and both felt the need to further enhance communication and collaboration. To this end an online business platform for small and medium enterprises was proposed. It will help entrepreneurs from both countries to pinpoint their counterparts and establish business connections. Currently the two sides are working closely together to turn this idea into reality.

The potential for our economic and trade cooperation is not small, I feel that mutual interest in business and trade is steadily growing. This can be seen from the rising number of visa applications for business visits to China at our visa office. My embassy has been approached by many Maltese business people to assist in making business contacts: we never reject these approaches and our door is always open.

There is also some Chinese private investment in Malta such as Leisure Clothing Ltd set up 20 years ago specializing in designing and manufacturing high-end garments for big fashion brands such as Armani and Chanel  and there are some joint ventures operating in China.

Do you see education as another sector with cooperation potential, in particular after the signing of the Sino-Maltese Agreement on Mutual Recognition of Academic Qualifications in May?

This agreement, will, I believe, increase the number of Chinese students here. There are currently some 20 to 30 Chinese students at the University of Malta, some at MCAST and ITS – the most common majors are international commerce, marketing, hotel management and tourism. There are also Chinese students taking short-term language training courses. Malta’s edge lies in its English-speaking environment and its academic excellence.

The academic links between our two countries will grow stronger. Already, institutions such as the Mediterranean Academy for Diplomatic Studies, the International Maritime Law Institute have excellent cooperation with their Chinese counterparts, annually offering scholarships to Chinese students. The University of Malta also enjoys close academic ties with the University of Xiamen in southern China, conducting regular academic exchanges over the last four years.

And how about culture and tourism?

This year marks the 10th anniversary of the increasingly popular and well-known China Cultural Centre in Malta – the first of 11 to be established in the EU – when the then President of China during a state visit here in 2001 accepted the proposal of the late President de Marco. There has been a wide range of cultural and artistic exchanges involving both Chinese and Maltese artists. This has immensely contributed to our mutual understanding and goodwill and I believe it will grow even more dynamic in years to come.

Malta is small in size but incredibly rich in culture and art, with perhaps the highest proportion of musicians and artists in the world. I see increasing interest and huge potential for future cultural cooperation. For instance, the Malta Film Commission is trying to attract Chinese filmmakers to shoot films in Malta, the Malta Philharmonic Orchestra is reaching out to China’s national orchestra for exchanges. Our Embassy is doing its best to help build connections and make things happen.

In December, an art troupe from Hubei Province in China, will  be participating in the L-Istrina event. Last year it was an art group from Jiangxi Province. I think this is particularly meaningful since our cultural exchanges are translating into tangible benefits for people in need. There will also be the annual event of Happy Chinese New Year in Valletta around February 2014, with the traditional participation of Chinese performers.

As for tourism, a greater effort is needed to attract more Chinese tourists, who are not very numerous, one way being for travel agents to offer two/three centre holidays in the Mediterranean, rather than just market Malta as a single destination.