The October 18-21 fourth meeting of Asia Pacific Economic
Cooperation Business Advisory Council (
ABAC) opened Thursday in
Shanghai. As a private-sector arm of APEC, the business advisory
council played a key role over the past five years in serving to
facilitate communications between economic leaders and enterprises
of
APEC.
While the ABAC meeting was still in progress, China.org.cn
interviewed its chairman for the year 2001, Qin Xiao who is also
chairman of China Merchants Holding Co. Ltd.
china.org.cn: How does ABAC promote the development of APEC?
Qin: Established in November 1995, the Business Advisory Council
aimed to reflect the voices of enterprises. It is well-known that
enterprises are the main driving force in the process of regional
economy liberalization and they provide information for APEC
economic leaders and government officials in policy-making. So far,
ABAC has 21 member economies each of which has three
representatives including one from small- and medium-scale
enterprises. The representatives are chosen by the heads of
economies. Their work is to evaluate the progress of trade targets
according to the annual proposals. Based on this, ABAC presents one
comprehensive report reflecting the opinions of enterprises to the
leaders concerned at the final discussion stage of APEC.
china.org.cn: Can you say something about the upcoming dialogue
between ABAC and APEC economic leaders?
Qin: The dialogue is based on the report finished last month, which
already has been handed to their heads by the representatives. The
direct dialogue will cover five aspects: investment and trade,
financing, technology, small and medium scale enterprises and
action plan monitoring. The focus will be three “hows:” How to
deepen markets opening; how to conduct capability building; and how
to involve full participation.
china.org.cn: In terms of economic globalization, what suggestions
will ABAC propose at this meeting? As for financial risk, what
predictions will ABAC give to APEC economic leaders?
Qin: Economic globalization is a trend and direction. Every member
economy is very much concerned about it because it is an important
precondition for quickening the circulation of resources and
raising efficiency of resources. However, economic globalization is
not a spontaneous process, it is a process with clear purpose,
guidance, negotiation and cooperation. For example, the financial
systems are increasingly vulnerable to potential crisis. Against
this background, we encourage the opening of finance on the one
hand; we stress the stability of finance on the other hand.
Generally speaking, enhancing the construction of finance including
human power, order, management, bank supervision will keep the
healthy and orderly development of financial market. But financial
crisis is unpredictable so we have to keep an eye on the
international capital market as well as foreign exchange market.
That’s the job of ABAC.
china.org.cn: Does ABAC give advice on how to deal with the
business sector in case of an unsteady economic situation? Is there
anything concerning Chinese enterprises? What expectation do the
representatives from business circle have for APEC?
Qin: The mandate of ABAC is to provide consulting to promote the
trade target and trade liberalization. As the host country of APEC
2001, China has a good economy. It is said one of the important
reasons for so many enterprisers come to the big gathering is
because they want to have a close look at the Chinese investment
environment. The expectations for APEC can be: First, to reconfirm
the promise of the “Bogor Declaration” even in the current economic
situation; second, to not only promote the development of APEC but
also to stimulate economic growth such as handling financial
crisis. The plan of the Business Travel Card is one of successfully
realized targets this year. The Chinese Foreign Ministry is going
to declare that China will join this program with help from some
other ministries concerned. The Business Travel Card will be a
great convenience for Chinese business people in international
business activities.
china.org.cn: Trade and investment liberalization and economic
technical cooperation are regarded as the “two wheels” of APEC, but
the fact is that trade and investment liberalization are mentioned
much more, why?
Qin: Economic trade zone is economic entity, which can be divided
into two parts: One is market and cooperation, the other is
government control with planned economy system. Therefore, ABAC
emphasized “Market opening, capability building and full
participation” because these three elements reinforce one another
and none of the three can be neglected.
(china.org.cn by Yan Xixia, staff reporter, translated by Zheng
Guihong October 19, 2001)