Interviews

FROM SUBSISTENCE TO MODEST PROSPERITY    

As China grows in economic power and importance, its influence continues to be felt throughout the world and even the world's long-standing economic super-power cannot but take notice. Chinese Ambassador to Ghana, H.E. Zhang Keyuan, discusses his country's growing economic power; its effects on the rest of the world; the 2005 Beijing Olympics and China's relations with Ghana.

THE WORLD DIPLOMAT: Almost the entire world seems to agree that China, the most populous nation, is most likely to overtake the US as the No. 1 economic power. How does China envisage herself in such a position? 

Zhang Keyuan: Since 1978, China's productivity and overall national strength have been enhanced and the country has moved from subsistence to modest prosperity. From 1978 to 2004, China had an annual growth rate of more than 9% and GDP increased from $147.3 billion to $1.90 trillion. Foreign trade rose from $20.6 billion to $1.1548 trillion, averaging an annual growth rate of over 16% and foreign exchange reserves increased from $167 million to $609.9 billion and the number of rural poor has dwindled from some 250 million to 26 million. Yet China is still a developing country.

Although its GDP is now the fourth highest in the world, its per capita GDP of $1,500 still ranks lower than 100th.  It even lags behind those of some African countries. In 2004, the GDP of the United States reached $11.7 trillion, six times that of China's $1.9 trillion. So we do not expect to overtake the United States; not in the foreseeable future.  

T.W.D.: China's ever-growing economic muscle is already having serious effects on the economies of a number of countries. The Ghanaian market is awash with made-in-China fabrics and some Ghanaian manufacturers have closed or are in distress as a result. Is this new trend in world trade, which has been creating job losses in many countries, not at all worrying to China?

Z. Keyuan: When you look at the whole picture, you'll find that the growth of China' economy is having a positive effect on the economic development of the world. In 2004, China's imports amounted to $561 billion, up by 36%. No wonder more and more traders in the world go to China to exploit this gold mine. In the meantime a greater number of Chinese businesses are investing in other countries.

As of September 2005 Chinese investments in Ghana went up to 204, making her second in the number of invested projects in Ghana. For instance in June 2005, two Chinese companies, Danpong Pharmaceuticals Ghana Limited and Adams Pharmaceuticals Company Limited, successfully launched a $4m joint venture which not only adds to local pharmaceutical production, but also helps create employment. C&G Fisheries Ltd., another joint venture, is completing a fishing complex in Takoradi that will enhance productivity and employ a number of local fishermen.

The economies of our two countries are highly complementary. That's a very good condition for tapping the potential of our bilateral trade. Now our exports to Ghana are becoming increasingly technology-intensive, such as telecommunications, harbour equipment, cars, buses, electronics and so on. These items create little competition with local Ghanaian products.

As to fabrics, this is quite an old issue. The Ghanaian textile industry began to face difficulties when Chinese textiles were still a rarity in this country. Even now, it is not fabrics from China alone that come to Ghanaian market. A host of factors, including tariff evasion by some importers (according the Ghanaian media) have also been impacting on the local textile industry. The Chinese government attaches great importance to solving the trade imbalance and periodically sends teams to Ghana to explore the possibility of increasing imports. In 2004, Chinese exports from Ghana jumped up by 130%.  

T.W.D.: China has also become a major polluter of the atmosphere. What programmes have been introduced in mitigation? 

Z. Keyuan: The Chinese government pays considerable attention to environmental issues arising from the country's population growth and economic development, and has made environmental protection an important aspect of the improvement of the people's living standards and quality of life. China has enacted a number of laws and implemented a number of measures for environmental protection, which is now a basic national policy. As a result, the environmental situation in China is improving. For instance, more cities are meeting national air quality standards, while cities with serious air pollution decreased from 40.5% to 20.3% between 1994 and 2004. Thanks to a vigorous afforestation programme, China now leads the world in the planting of new forests.  

T.W.D.:  Diplomatic relations between China and Ghana were established in 1960. What do you consider to be the state of these relations today?

Z. Keyuan: Built on a solid basis, China-Ghana friendly relations and cooperation have been widening and deepening in all areas. In 2002, President John Agyekum Kufuor paid a successful state visit to China. In 2005, President Hu Jintao and President Kufuor held fruitful discussions in Jakarta, Indonesia. These top level interactions have immensely strengthened China-Ghana relations.

Our bonds have also been enhanced through frequent exchanges of official visits. In 2005, Hon. Wang Zhongyu, Executive Vice Chairman of the Chinese People's Political Consultative Conference, Dr. Zhou Xiaochuan, Governor of the Central Bank of China, Hon. Li Jinzhang, Assistant Minister for Foreign Affairs, among others, paid successful visits to Ghana. During these visits agreements on a Chinese grant and an interest-free loan to Ghana were signed.

Economic relations are also making strong strides. More businesses from China are making Ghana their investment destination. ALCATEL Shanghai is making good progress on a $150 million expansion project for the Ghana Telecom network. In October 2005 a telecommunications project was completed by ZTE Corporation for KASAPA, a Ghanaian Telecommu- nications company. Experts from the First Survey and Design Institute of China Railways are now carrying out a preliminary feasibility study on the rehabilitation and expansion of Ghana Railways. There are many other projects that have attracted the interest of prominent Chinese companies, such as CMEC, China Hydro, Huawei, etc.  

T.W.D.: Your capital city, Beijing, will be hosting the Olympic Games in 2008. At what stage is your preparation for this major event?

Z. Keyuan: In our preparations for the Olympic Games, we emphasise the concepts of a "Green Olympics, a Hi-tech Olympics and a People's Olympics."

For the Green Olympics, first priority is being given to environmental protection (EP) in planning, design and construction of Olympic venues and facilities to strict ecological and environment standards and the establishment of support systems. Environmental protection technologies and means are being used to promote environmental treatment, afforestation and beautification of urban and rural areas. Stress is put on raising the environmental awareness of the whole society, on encouraging the public to opt for green consumption and to join in activities aimed at improving the ecological environment, all in an effort to improve the environmental quality of the capital and to build it into an ecological city.

We closely follow our latest hi-tech developments and integrate these nationwide, so as to host a sports event in a hi-tech environment. The Beijing Olympic Games will be a window to showcase our hi-tech achievements and innovative capacity. We take our hosting of the Olympic Games as an opportunity to popularise the Olympic spirit, promote Chinese culture, showcase the history and development of Beijing, and the friendliness and hospitality of its citizens.                 

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