Q: It is reported that the "China factor" is playing a
key role in stimulating world economic growth. Is this true? China
is importing large quantities of energy products such as oil.
People are worrying if it will affect the international
market.
A: In the middle and late 1990s, rapid economic development made
China more and more dependent on the international market for its
raw materials. Statistics show that in recent years, among the
annual net increase of US$300 billion in world trade, US$150
billion, or half, was contributed by China. This shows that China
has become one of the key factors fueling world economic
growth.
Since the implementation of the reform and opening-up policies
in 1978, China has reported a rapid development in its imports and
exports and expanded its links with world economy. The
interrelationships and mutual influence of China's market and
international market and of the domestic price and international
price are becoming increasingly intimate. Right now, no country can
develop its economy if they close their doors to the outside world.
On the one hand, we import some energy products and raw materials;
on the other hand, we export finished products, which has been
standard practice in other countries. Meanwhile, this mode of trade
is based on equality and mutual benefit and can help achieve
win-win results.
It cannot be denied that energy consumption in China has
increased to a certain extent. In the future, China's position as a
country that consumes a lot of energy will be more prominent than
its position as an energy producing country. But people know China
is both a big energy consumption and energy production country. The
reason that China can depend on itself to resolve its own energy
problems is mainly thanks to its energy structure and resource
situation. The Chinese coal reserve is abundant, and remains the
basis of its energy structure. As a result, the energy
self-sufficiency rate in China reached 94 percent in 2004.
Additionally, China has great potential in energy conservation
and the improvement of energy utilization. In the future, apart
from further expanding the construction of large-scale coal
production bases, China will actively develop hydropower and
nuclear power and encourage the utilization and development of
renewable sources of energy, such as wind power and bio-energy.
Meanwhile, China will speed up exploration and development of oil
and natural gas and will further stabilize and increase domestic
oil output. In terms of energy, China does not and will not strain
energy supplies in the world market.
Resolving the resource problem in China involves sticking to the
self-sufficient policy as well as persisting in the reform and
opening-up policies, making full use of domestic and international
markets and resources; in international economic cooperation, it
entails adhering to principles of equality, mutual benefit and
win-win results. The "China factor" will last for a long period of
time in international trade.