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Q & A
Q & A
UPDATED: January 4, 2007 NO.2 JAN.11, 2007
An old relationship gets a boost
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.
By YAN WEI
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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 to 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 take 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.

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