18 January 2008
Transcript of a press conference given by the Prime Minister and Premier Wen of China in Bejing on 18 January 2008. Gordon Brown hailed a new level of partnership with China which he said could create tens of thousands of jobs for British workers.
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Premier Wen:
Good Morning Gentlemen. Thank you Prime Minister Brown. Can I say first of all Prime Minister I extend a very warm welcome to you. Since he took office last June I have had several sets of conversations with the Prime Minister and we exchanged letters. I think it is fair to say that we have forged a good working relationship and personal friendship.
Just now we had an in-depth, candid and friendly exchange of views on China-UK relations and major international and regional issues of mutual interest. We reached a broad agreement. After the talks we both believe that the talks have been a very pleasant one.
We share the view that thanks to our joint efforts the China-UK relationship has entered a new stage of all round development as the international environment is undergoing profound changes, to further develop and add new dimensions to our comprehensive and strategic partnership serves the fundamental interests of both peoples and countries and is conducive to world peace, stability and prosperity.
We agreed that: firstly, we will continue to keep close high level exchanges, make the most of the annual meeting mechanism of the two Prime Ministers to increase our political mutual trust; second, we will operate the Vice Ministerial level financial dialogue to an economic and financial dialogue at Deputy Prime Minister level; and third, we will expand mutual trade and investment with a target of raising our two-way trade to US$60 billion by 2010; fourth, we will seize the opportunities presented by the 2008 Beijing Olympics, the 2010 Shanghai World Expo and 2012 London Olympics to enhance our exchanges and cooperation in development fields; we also agreed to put in place a China-UK youth exchange mechanism to create conditions for the young people’s exchanges and cooperation and expand the popular support for our friendship in the future; and sixth, we will carry out close consultation and cooperation on major international and regional affairs and work jointly to cope with the global challenges of climate change, energy security and proliferation of WMD.
China actively supports the initiative of Prime Minister Brown of the declaration on the Millennium Development Goals’ call for action.
I have also had a sincere and in-depth discussion with Prime Minister Brown on the Darfur issue. We agree that the trilateral consultation mechanism involving the United Nations, the African Union and the Sudanese government should continue to serve as the main channel for resolving the Darfur issue, that the hybrid operations and political process should be advanced in parallel, and that the smooth deployment of hybrid operations in Darfur should be ensured. Parties concerned should realise a complete ceasefire in Darfur and reach a comprehensive peace agreement through negotiation. We call on the international community to make joint efforts to improve the humanitarian and security situation in Darfur and support its economic reconstruction and development.
The Special Representatives of China and the UK on Darfur will keep in close contact and the two countries will work together for an early and proper settlement of the issue and the early realisation of peace, stability and development in Darfur. Both countries hope that the north and the south of Sudan will fully implement the comprehensive peace agreement.
Next month China will celebrate its Spring Festival. During this festive season a series of cultural activities under the theme of ‘China Now’, initiated by the British business community, will be launched in London. Let me take this opportunity to extend the warm congratulations on behalf of the Chinese government and I wish the event full success.
Mr Prime Minister your visit to China this time, though brief, has a very rich content. I believe your visit will give a very strong boost to the further development of our friendship and cooperation.
Prime Minister:
Can I say that I welcome the constructive dialogue and discussion we have had this morning on a whole range of issues.
Amidst the global economy’s difficulties and its turbulence, the importance of China and our growing relationship between Britain and China is absolutely crucial to the success of the global economy as a whole and I am delighted that we are able to move our relationship forwards to a new level of cooperation. Ours is a dynamic, comprehensive and strategic partnership for the future which will make possible greater prosperity for both our countries.
We congratulate China on its rise as an economic and political power and everywhere here we see signs of growth and development. And we congratulate you on the hosting of the Olympic Games which I know will be a great success later this year.
In our discussion of the growing economic partnership between China and Britain, we said that we want Britain to be the number one destination of choice for Chinese business as it invests in the rest of the world. And I believe that the new level of partnership, which will be emphasised by the higher level of dialogue between the Chancellor of the Exchequer and the Vice Premier of China at regular meetings, will raise the level of investment from Chinese firms into Britain and raise the amount of trade between our two countries. So we have jointly set a target for a 50% rise in trade in the next two years. I believe that by 2010 we will see 100 new Chinese companies investing in the United Kingdom, we will see 100 partnerships between our higher education institutions, our universities and Chinese universities. We will double the number of firms listing on the London Stock Exchange and thousands of jobs will be created as a result of inward investment into Britain, and trade between our two countries, and we welcome the creation of the Sovereign Wealth Fund and its potential for investing in our country.
So we have agreed today to raise our bilateral trade from 40 billion to 60 billion in just 24 months, and to do that we will ensure that Britain remains the most attractive place for Chinese companies to invest abroad.
We also agreed to redouble our efforts to tackle the main political challenges facing the international community. You have made today Premier Wen an important statement about the unacceptable situation in Darfur and your Envoy will visit London soon so that our two governments can have joint talks about our shared responsibilities as Permanent Members of the Security Council with a shared interest in Africa to move the deployment of African Union forces in Darfur forward and to make ceasefire talks happen and succeed.
We also discussed the situation in Burma and Premier Wen and I agreed that reconciliation and reform that brings about peaceful change is in the interests of Burma and all its neighbours. And we agreed that Mr Gambari, the UN Envoy, who was due to visit in March, should visit as soon as possible, and at an earlier date if possible, with a clear mandate to make progress on the release of prisoners and the start of reconciliation talks.
I go from here to a meeting of Chinese and British business leaders, and tomorrow I will visit Shanghai - a symbol of China’s economic ascent. It is also a city where the Chinese authorities are beginning to tackle the challenge, as we are, of climate change and we have agreed today that we will work more closely on improving the environmental technologies, but also the work that is done to combat climate change.
The dialogue between our two countries includes trade, international security, science, education, sports, culture, human rights and democracy, and that dialogue is after today’s discussions moving to a higher level. And I know that that dialogue will continue to be constructive and as useful as the talks have been today and I look forward to further visits to China, to welcoming Premier Wen to the United Kingdom, and to the enhanced cooperation between our countries at all levels and in all areas in the years to come. Together we can not only ensure greater prosperity for our two countries, but shape the international institutions in a way that will contribute to the prosperity of the whole world and that is why I welcome the support Premier Wen has given today for the Millennium Goals’ call to action which says that this year must be an important year for moving forward in tackling poverty and injustice in the poorest parts of the world.
Thank you Premier Wen.
Question:
Prime Minister, we know that the Taiwan issue is the biggest concern of China. The Taiwan authorities are stepping up their so-called activities for the referendum of joining the UN under the name Taiwan, which has caused universal opposition which we believe will undermine peace and stability. How do you see such action by the Taiwanese authorities?
Prime Minister:
The British Government’s position is unchanged. We believe in the one China policy. We will continue to pursue that policy and I believe that that is well understood in the rest of the world.
Question:
Prime Minister what do you say to voters at home who perhaps fear Chinese economic competition and why do you believe trade is so important for prosperity? And Premier Wen in this room two years ago you talked about democracy and I asked you then when your successor would be able to be chosen directly by the Chinese people and also to lose his job as result of the decisions of the Chinese people. Are we any closer today to that happening?
Prime Minister:
First of all I believe that tens of thousands of jobs in Britain for British workers can be created from the increased cooperation between our two countries. It is true that we are now able to sell to China not just financial and business services and environmental technologies that are benefiting the attack on climate change in China, but also a whole range of British brands that are now becoming very popular amongst the rising number of Chinese consumers. And that is why so many British companies are here trying to develop in China with the support of the Chinese government. And that is why also we welcome the increasing investment by Chinese companies in the British economy. So we are moving our partnership with China to a higher level. If you look at our economy over the last 100 years we have traded well with Europe, we have traded well with America, we have traded well with the Commonwealth. Now we have this new opportunity, with more than a billion people in China, to build strong economic relationships with the fastest growing economy in the world and I believe that the benefits to British people as well as to British consumers are going to be seen in great way in the years to come. It is particularly true amidst global financial turbulence that the growing economy of China can make a contribution to the growth of the British economy as we move forward in the next year.
Premier Wen:
No I cannot fully agree with what you have said in your question that our bilateral trade cooperation is linked with political aspects. Nonetheless I am willing to answer your question about China’s development concerning democracy. China will continue to promote the development concerning democracy and political institutions advancement to ensure that our peoples enjoy their democratic rights for selection, election, participation in political affairs and participation in the decision making process to the fullest extent. Below the county and township levels we exercise now direct elections, and above the municipal level and above that level we exercise indirect elections. We are sure that the Chinese people, through the elections and the relevant experience in exercising democratic rights, can administer well a county, a township and even administrative levels beyond. Concerning the differences in terms of democratic elections, we ensure the exercise of democratic rights of our people to the fullest extent. This is what we have in common.
That is all I have to say.
Question:
Could I just follow on from that by asking Premier Wen first, and if the Prime Minister could also comment on this. Given what you just said, and given the phenomenal economic success that the Chinese people are achieving day by day, why do you believe they are not ready now to choose their own national leaders, a right that millions and millions of other people have all over the world? And if I could just ask you to be a little bit more specific, is that something that you do desire in the long run and if so is it possible to put some timescale, some kind of date on it?
Premier Wen:
I have said that democracy, freedom, equality, universal law, are the common values of all humanities and also what Chinese leaders all cherish and aspire for over the years. Nonetheless countries may differ in terms of the way of achieving such aspirations due to their differences in their history, culture and the current circumstances. China will remain committed to advancing democracy, that is to say our people will gradually exercise greater democratic election and participation in political affairs.
Prime Minister:
I have raised with Premier Wen the question of elections in Hong Kong and I welcome his assurances that we will move to elections, both of the Chief Executive and for the Council in Hong Kong over the next period of time. I have also raised the human rights issues that we discuss at the dialogue between China and the United Kingdom which takes place later this month. I welcome the decision that has been made by the Chinese government to invite foreign journalists into this country during the period of the Olympics to be able to interview and to travel freely round the country. And all the issues of human rights that have been a feature of the discussion will be part of the dialogue that will take place later this month.
Question:
I have a question to Prime Minister Brown and Premier Wen. The question for Premier Wen: the UK is a country of great significance in the world, it has a highly advanced economy, and China for its part is rapidly booming and also willing to contribute more to the international community. So the two countries are seeing increasing strategic interests. So bilaterally on the international arena, where can the two sides cooperate? And also a question for Prime Minister Brown: the Sovereign Wealth Fund will play an important role in the economic field, but there are also doubts about it, so how do you comment on such doubts.
Premier Wen:
On the bilateral front, bilateral relationships between China and the UK can be summed up in the following three sentences. First, we follow the principles of mutual trust and mutual benefits and strengthen comprehensive cooperation in the political, economic and cultural fields. Second, we learn from each other and strengthen our discussions and dialogue concerning each of our developments, in particular the focus about exchanges is addressing the issues of welfare of our peoples. Thirdly, we focus on the long term interests of our bilateral relations and grasp the major opportunities for cooperation of our two countries and lay a solid foundation for the growth of such relations.
In the international arena our cooperation can be summed up also in three sentences. Firstly, politically we work together to uphold peace and stability in the world and advocate democracy and multilateralism in international relations. We are committed to peaceful means for the settlement of international disputes. Secondly, on the economic front we advocate free trade, oppose protectionism and work together to promote the solution of development issues and help developing countries to enhance their capacity for independent development. And thirdly, in terms of environmental protection we form synergies and take up our respective responsibilities to tackle climate change together so that we can leave behind a beautiful home called earth for our prosperity.
Concerning the Sovereign Wealth Fund, I wish to say a few words before the Prime Minister. Recently China has established an investment company. Such a move has caused attention from all over the world. We have set up this company with an aim to firstly, because as it is widely known China’s surpluses in foreign trade and capital has caused imbalances in international balance and its foreign reserves have increased fairly rapidly. Therefore we must ensure that our foreign reserves will be used appropriately and safely. And secondly, we need to cooperate financially with other countries and engage in trade with other countries. This investment company is entirely commercial and through investment we can gain experience to ensure that China’s current foreign reserves are safe and can add value to it gradually. I must explain here that we have established this company with a registered capital of US$200 billion, but we have already used up US$60 billion for the reform of China’s commercial banks as a way of instilling capital. The reform of our commercial banks has been very successful and for our next step we will continue to advance the reform of other state owned commercial banks and will continue to use the investment company to inject capital.
Therefore the company is investing overseas in less volumes, it is merely in the tune of about US$6 - 7 billion. And secondly, the company runs on a totally corporate basis, without intervention from the government. They are only responsible for adding value to the government capital. And thirdly, for their overseas operations they must not be linked with political issues. We will endeavour to enable the funds overseas investment to be transparent and open, that is to say foreign people in other countries as well as domestic media will have much insight into what they are doing. As the Chinese saying goes - the more famous you are the more attention you will get. We approach this issue with caution, nonetheless there are speculations in the foreign media and I wish to take this opportunity to explain the matter to you.
And also may I add that after the investment fund wealth is created, due to our lack of experience we must learn from foreign countries.
Prime Minister:
We discussed this in our private conversations. Premier Wen has given me the assurance that he has just repeated to you that the Sovereign Wealth Fund will operate in an open, transparent, non-political and commercial way when it invests in countries outside China. And I have invited Premier Wen and the Sovereign Wealth Fund to consider London for an office for the Sovereign Wealth Fund as an overseas office, and I was grateful that the first visit of the head of the Sovereign Wealth Fund to look at overseas investment has already been to London. This is a very substantial fund, it can invest positively in the economies of the world. I recognise that in some countries it is controversial, but having talked to Premier Wen and heard what he has to say about the commercial nature of the fund and the open and transparent way that it will operate, I think it is true that Britain will welcome substantial new investment from China in our country in the years to come. This will be part of the enhanced strategic interest between our two countries which can be of benefit to both countries and to the world economy. China is the fastest growing economy in the world. China is investing in Europe in a greater way than ever before. We want Britain to be the first location for Chinese investment in Europe and in the rest of the world, and of course the measures that we are signing for science cooperation, universities and education cooperation, and environmental technology cooperation, are designed to create the common bonds between our two countries that will make investment successful in the years to come.
We have also talked about the openings that there can be for British banks and British financial and insurance companies in China and I am sure that we can make even greater progress in the next few years after a situation where two of the foreign banks chosen for development of a branch network in China have been British banks, and I believe in a whole range of sectors and industries that cooperation between our two countries can be of huge benefit in the time to come.
I believe we are entering today, and partially so because we are at a time of global financial turbulence, we are entering a period where the cooperation between China and Britain economically will yield huge benefits for both our countries in the years to come.
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