The European Union (EU) welcomes two new members in 2007.

Notably, Bulgaria and Romania have had the longest diplomatic relations with the People's Republic of China in the enlarged EU, being the second and third countries, respectively, to have recognized the People's Republic after its founding in 1949. In a recent interview with Beijing Review reporter Yan Wei, Romanian Ambassador to China Viorel Isticioaia-Budura spoke about what Romania can bring to the union, in particular, its experience and expertise in managing relations with China.

Beijing Review: What does the EU accession mean to Romania? What role will Romania play in the organization?

Viorel Isticioaia-Budura: January 1 is a historic moment for Romania and the Romanian people because we have been waiting for this moment for quite some time. Being a European country, which is related by history, culture and many social affinities to the rest of Europe, we feel it's like coming back to the family. I believe this will enter into the history of the Romanian nation as an irreversible course of the Romanian people toward prosperity.

Romania brings to the EU a dynamic economy with a constant growth rate. The economic growth of Romania was over 6 percent last year. It will probably reach 8 to 8.3 percent this year, superior to the average growth rate of most EU members. We bring a skilled labor force, a market of over 22 million people as well as many business opportunities.

We believe that we can also bring to the EU a successful model of how to handle relations between national minorities and the majority. Romania has succeeded in establishing a new type of relationship between national minorities and the majority: Between them there should be "harmony," as the Chinese say, cooperation and coexistence.

Another important contribution of Romania to the EU is its strategic location, neighboring the Black Sea region, the West Balkans and former Soviet Union states. The Romanian position represents an important asset for the EU in the region. In the future, it will be the eastern border of the EU. We will not only be a limit, but will also be a good platform on which the EU can reach out to the neighboring areas. We will not be an obstacle. At the borders, we will be a gate. We will guard this gate for the safety and security of the EU but at the same time try to help the union reach out and expand its cooperation over the borders to those potential partners.

Many experts foresee an important movement of businesses and capital from Western Europe to new horizons with good markets and potential. And I would like to see Romania's accession to the EU as offering new business opportunities. It is like a logistics center for many European businesses moving eastward, because we have the Danube River, which comes from Germany down to the Black Sea. It could become an important axis of transportation from north to south and from south to north.

China and Romania pledged to establish a "comprehensive friendly and cooperative partnership" during President Hu Jintao's visit to Romania in 2004. What are the characteristics of this partnership and what progress has been made since then?

"An all-around friendly and cooperative partnership" is the definition of our bilateral relationship. It guarantees the sustained growth of the relationship and the enrichment of the cooperation agenda.

It is "friendly" because we have a relationship established 57 years ago. We have a traditional relationship that was always friendly. There have been no problems between Romania and China ever.

It is "comprehensive" because it embraces a large number of fields, including high-level political dialogue, institutional partnerships between Central Government structures, the sisterhood and twinning of local administrations and close relations between various mass organizations.

In almost every year since 2002 we have had high-level contacts between the two countries' heads of state and heads of government. We have institutional partnerships between the ministries of foreign affairs, commerce, telecommunications and IT, justice, culture and public security. Nearly 30 Romanian and Chinese provinces and towns have been paired in a "sisterhood" relationship. In almost every Romanian county there is a branch of the Romania-China Friendship Association. The number of delegations, official or unofficial, traveling between China and Romania is about 100 a year. In 2006, 800-1,000 Chinese traveled to Romania every month for business, official visits, tourism or to visit friends and relatives.

According to official statistics from Chinese Customs, from January to October 2006, the overall trade volume between the two countries was $5.1 billion. Compared with last year, it increased 275 percent. China's exports to Romania totaled $4.9 billion, representing an increase of 329 percent. However, Romania's exports to China were only valued at $200 million.

So, like many other EU members, Romania has a big trade deficit with China. What do you think is the best solution to the trade imbalance between China and Romania and between China and the EU as a whole?

I think the trade imbalance is a concern of both China and Romania. From our point of view, what we are importing is something that is very much needed by Romanians. Romanians like to use, consume and profit from Chinese products. They are mostly of good quality and affordable. We are not preparing to limit, discourage or stop Chinese imports.

Starting from January 1, 2007, it is not impossible to see the growth of Chinese exports maintained or become even bigger, because once Romania joins the EU, the customs fees will be lowered in line with the rules the EU applies to China. It is quite possible that Chinese exporters will be very much encouraged by the new customs regime.

Recently, the Romanian Chamber of Industry and Commerce discussed this issue with government representatives in Bucharest. They are glad that trade will flow more freely between Romania and China but they would also like to see a means of ensuring a certain balance.

Since the visit of our president to China in March 2006, we have had three economic missions sent to Romania by the Ministry of Commerce of China, which shows that the Chinese side is paying attention to the trade imbalance. The Chinese are trying to find ways to reach a balance together with the Romanian side and offer to the Chinese market more Romanian products that might be of interest to Chinese importers.

However, we do not see only trade as being important in our economic relationship. We also look to other areas such as investment. In the last 15 years, over $200 million has been invested in factories and workshops established by the Chinese across Romania. Over a dozen factories have been established by Chinese companies in Romania, processing wood and producing bicycles, textiles and TV sets. Now we have under discussion a number of projects amounting to $50-60 million for opening new factories in Romania.

To stimulate this trend, many local authorities in Romania are negotiating tax incentives for Chinese investors. We foresee in the coming three to five years that Chinese investments in Romania will go over $1 billion.

I think Chinese business people increasingly looked to Romania as a potential destination for investment in the last a couple of years because they knew that very soon Romania would be a part of the European market. Both the Chinese and the Europeans have proved to be active in promoting economic relations. At the same time, they represent two different markets. China really has the potential to increase its imports from the EU because the EU offers in terms of quality and technological level many excellent goods that are needed by Chinese industries for their modernization and by the Chinese people for consumption. And at the same time they will find possibilities for joining hands to produce many goods.

I'm very optimistic about the prospects for trade relations between China and the EU because they will soon start negotiations over the new framework of the partnership and trade relations. I believe it is a chance for both sides to accommodate their policies and promote their shared interests.

I don't believe in protectionism as a solution. I'd rather believe in shared interests and in the opportunities that can be used by both sides, the Europeans and the Chinese, to ensure a profitable, longstanding and stable trade relationship. Being a Romanian, I look forward to being a part of the new deal the EU will strike with China for a better, larger, wider and more stable trade relationship.

What is Romania's position on the EU's arms embargo on China?

You know the sanctions were imposed while Romania was not a member of the EU. But we share many of the values and principles well established inside the EU, including its agenda of foreign policies and principles for the relationship with China. At the same time, we fully trust the collective wisdom of the EU that it will make an appropriate decision on this issue. For sure, on the day the EU decides to lift the embargo, Romania will be there to support the decision.

As a new EU member, how will Romania contribute to the development of China-EU relations?

In the enlarged EU, among 27 members, Bulgaria and Romania are the countries that have the oldest diplomatic relations with China. We are proud that the EU will enhance and enrich its relationship with China by inviting us in. We are trying to bring in our own experience, expertise and knowledge of Chinese affairs.

There are a number of things that give me a lot of courage and optimism to foresee the ways in which Romania inside the EU will play a role in contributing to the development of China-EU relations.

There are a lot of programs in different areas related to the environment, human resources and improving energy efficiency between China and the EU. Romania will be happy to join in the implementation of these programs by contributing its own technology and experience.

Many companies in the West have developed business bases in Romania. As they seek to expand their businesses, we can offer a new platform to create joint business activities between the Chinese and their Western European partners. This is a trilateral cooperation between Romanians, Western companies and the Chinese.

Besides, there are things we are learning from the Western Europeans in developing relations with China. We have noticed that the Chinese People's Association for Friendship with Foreign Countries organizes forums for mayors of Chinese and French cities every two years. We proposed to the friendship association to establish a Chinese-Romanian mayors' forum in 2009, when we celebrate the 60th anniversary of our diplomatic relations.

We would like to enhance the experience of cooperation between China and Europe. At the same time, we would like to borrow and learn from the experience China and the EU have already had in many other fields. It is a two-way approach.