On Sunday, April 8, 2012, the Daily Outlook Afghanistan interviewed Mr. XuFeihong, the ambassador of the People's Republic of China to Afghanistan. The ambassador, Mr. XuFeihong, discussed China's economy, its changing position in the global economy, the reasons behind the recent Chinese government's policy of deceleration of its economic growth rate and China's overseas resource development and extraction with particular focus on such these projects undertaken by Chinese companies in Afghanistan. Below is a transcript of the interview.
Your Excellency thank you very much for giving us the opportunity to visit you and talk about a number of issues that, in the contemporary world, have come to assume a great deal importance. China's economic rise and its implications for the world in general and Afghanistan in particular are issues that merit discussion and consideration.
Q: The government of China has announced that it intends to lower the pace of the growth of its economy. What is the reason for China to slow down its economic growth rate?
Answer: Since the adoption of opening-up and reform policy in 1978, especially entering the new Millennium, China has enjoyed double-digit growth rate in terms of GDP for consecutive years. In the Report on the Work of the Government delivered by Chinese Premier Wen Jiabao last month, GDP of 2012 is expected to be increased by 7.5%, which is relatively lower compared to the targets set in previous years. Once released, this news catches the eyes of media from all over the world. They keep asking: Why?
Actually the answer is quite simple. By setting a slightly lower GDP growth rate, China hopes to make it fit with targets in the Twelfth Five-Year Plan, and to guide people in all sectors to focus their work on accelerating the transformation of the pattern of economic development, adjusting and optimizing economic structure, and making economic development more concrete and efficient, so as to achieve higher-level, higher-quality development over a longer period of time.
The adjustment is initiated by the Chinese Government itself in order to enable its economy to realize scientific, robust and sustainable growth. It gets clear and urgent that the development pattern of China's economy need shift from data-oriented to quality-oriented, from labor-intensive to capital & technology-intensive, from high energy-consuming and heavy-polluting to lower energy-consuming and environmental-friendly one. To ensure smooth proceeding of this adjustment, temporary deceleration of economic growth is the only way out.
Q: Many experts and economists recognize China as the engine of the global economy. Will China remain the engine of global economy as before?
Answer: China's GDP reached US$7.5 trillion, an increase of 9.2% over the previous year. The total import and export volume was US$3.64 trillion, which achieved a year-on-year growth by 22.5%. China consolidated and built upon its achievements in responding to the global financial crisis, and got the Twelfth Five-Year Plan period off to a good start. Besides, China stayed as the second largest economy in the world and made contribution to the world economy in the proportion of over 20%.
With respect to the GDP growth rate only a few countries in the world, such as Qatar, Turkey, Nigeria and Ghana, etc. exceeded 7.5% in 2011. In this context, China will still be the top-ranked actor in the global economy even it follows growth adjustment. According to the analysis of Chinese Academy of Social Sciences, China's GDP growth rate is expected to reach 8.9% in 2012 if there would be no severe deterioration in international politics and economy, or serious natural disasters in China.
As everyone knows, investments, exports and domestic demand constitute the troika for one country's economic development. While previously, China put more emphasis on investments and exports. Currently, we are endeavoring to achieve the balance and coordination among the troika with equal growth pace. In recent years, China's total retail sales of domestic consumer goods has expanded by 16%-18% annually, which is much higher than the economic growth rate. It is estimated that China's demand scale in domestic market will reach the value of 30 trillion RMB (equally US$5 trillion) in 2015, which indicates undoubtedly that China will remain the driving force of global economy in the long run.
Q: Will China's growth go on bringing peace, development and prosperity to the neighboring countries?
Answer: It's a good question. In my opinion, the answer attributes to the general trend of international affairs. Today's times is an era of globalization and informatization, which makes countries in Asia or even the world share more tightened interaction, deepened cooperation, and intertwined interests. Countries are bound to rise or fall together. We should hence act in a comprehensive and long-term thought to plan one country's future with the whole region and world destiny in mind.
China holds that development is of overarching importance and a single flower does not make a spring. China could only realize its own sustainable development by the common advancement and prosperity of neighboring countries. China pursues the policy of building good-neighborly relationships and partnerships with countries in its neighborhood and is committed to deepening the mutually beneficial cooperation with other Asian countries.
China adheres to the principle of driving regional development by its proactive efforts and responsible deeds, which will remain unchanged in the future. Last year, trade volume between Chinaand Asian countries exceeded US$1 trillion, which made China being as the biggest commercial partner for most Asian countries. China's investment in Asia approached US$20 billion. Cooperation between China and Asian countries in science and technology, finance, energy and infrastructure has been unprecedented in terms of breadth and depth.
China tops the list of world exports. But it gets few notice that China's imports also ranks the second in the world. In the next couple of years, this ranking may rise to No. 1 and by then China will become the world's largest market. We cordially invite qualified and reputable Afghan enterprises to explore China for business opportunities and cooperate with Chinese counterparts to share the profit and booming future.
Q: The history, pattern and practices of overseas resource extraction by Western countries have been subjects of much criticism. Does China's overseas resource extraction and exploitation follow the Western "grab and go" policy as seen in history?
Answer: Since the Afghan peace and reconstruction process kicked off in 2002, the Chinese enterprises actively devote themselves to the cooperation and exploitation in fields of mining, energy, infrastructure, telecommunication, etc. Among them, Aynak copper mine project, which is by now the largest overseas direct investment in Afghanistan, has launched its preliminary work. The Amu Darya oil project agreement has been inked and relevant preparatory works has already been undertaking. Referring to the above-mentioned Chinese efforts, some western media conspiratorially made uproar and fallacies that China was robbing the resources of Afghanistan.
In fact, China holds a consistent policy of working together on economy & trade, and resources exploitation on the basis of mutual benefit and equality. China strongly advocates that all countries should embrace win-win cooperation. This means that while pursuing one's own interests, one also needs to take into account the interests of other countries; while enjoying one's rights, one should also fulfill its responsibilities. Countries need to accommodate each other and work together to uphold justice and expand common interests.
Whatever the project is, the Chinese enterprises in Afghanistan stick to the principle of extracting the resources and benefiting the local people at the same time. During the exploitation process, the Chinese enterprises have done a lot for the well-beings of the Afghans by training local labors, creating job opportunities for communities, paving roads, constructing bridges, and setting up power plants, etc. so as to truly benefit the civil livelihood through resource cooperation project.
I'd like to point out that the Chinese enterprises attach great importance to the protection of culture heritages and natural environment. For example, during the proceeding of Aynak cooper mine project, the Metallurgical Corporation of China (MCC) paused their work when some Buddhism relics were accidentally found. Although they had to suspend the project and bore tens of millions USD loss, MCC cooperated well with the Afghan government and archeologists to clear sites and relocate the relics.
And the company will not restart their work until all the relics are properly handled with. China holds the philosophy of mutual respect, equality, transparency, fairness and friendship while carrying out its cooperation with other countries, which is highly appreciated by the international community.
In retrospect, western powers wrote the history of overseas colonial rules for centuries with grabbing others' resources without mercy, natured by killing and bloodiness, buying and selling by force, environment destroying and culture overriding, and numerous harsh terms of interference of other countries' internal affairs. This shows a big contrast with the philosophy of China's overseas cooperative resource development. The so-called statement of China "grab and go" policy collapses of itself.