Chinese Premier Wen Jiabao on Tuesday gave an interview to
journalists from five European news organizations, briefing them on
China's political, economic, social issues and China-Europe
relations.
Wen also answered questions on important international and
regional issues.
The five news organizations are Helsingin Sanomat,
Reuters, The Times, Deutsche Presse-Agentur and
Frankfurter Allgemeine Zeitung (FAZ).
The interview took place in Zhongnanhai in downtown Beijing
where China's top leaders work and live.
The interview came ahead of Wen's trip to Finland, the United
Kingdom, Germany and Tajikistan from September 9 to 16.
Wen will make the visit at the invitation of Finnish Prime
Minister Matti Vanhanen, British Prime Minister Tony Blair, German
Chancellor Angela Merkel and Tajikistan Prime Minister Akil
Akilov.
Following is the full text of the interview:
Wen Jiabao: "The path of fallen petals I have not swept until
today, when I open my thatched door, just for you." I have quoted
these lines from famous Tang Dynasty poet Du Fu's poem by way of
welcome, and I am pleased to give you this interview.
I will soon leave for Europe to attend the ASEM meeting, the
China-EU summit and visit Finland, the United Kingdom and Germany.
This will be my third visit to Europe as Chinese Premier. China-EU
relations now enjoy good momentum of growth. This summit will focus
on the early conclusion of a New China-EU Framework Agreement on
the basis of enhancing the comprehensive strategic partnership
between China and the EU. This Framework Agreement aims to deepen,
as a matter of strategy, China-EU cooperation in the political,
economic, science and technology, cultural and educational areas
and grow the bilateral ties to ensure this cooperative relationship
will not be affected by any particular issue or any change in the
leadership.
Finland is renowned as a country of innovation. During my visit,
China and Finland will sign cooperation agreements on economic,
science and technology, educational and cultural exchanges. China
and the UK maintain close coordination and cooperation on major
international issues, and the two countries will sign cooperation
agreements on climate change and energy security. China and Germany
have strong trade ties and the two countries will sign a series of
agreements including cooperation in petrochemical sector and
environmental protection. I am confident that my forthcoming visit
to Europe will take cooperation between China and the EU and
particularly between China and the three countries to a higher
level.
ASEM provides an important platform for countries in Asia and
Europe to broaden mutual understanding and strengthen cooperation.
Countries in both Asia and Europe are now in a crucial stage of
development, and it is important that we make full use of this
platform to boost our cooperation. At the meeting, I will put
forward a number of policy proposals for advancing Asia-Europe
political, economic and security cooperation. And I will announce,
on behalf of the Chinese Government, that China will host the 7th
ASEM summit.
Now I am happy to answer your questions.
Helsingin Sanomat: My question is on China's relations
with Iran and North Korea. Will China oppose sanctions against
those countries even if they fail to accept Security Council
demands? And also, will China use it's economic ties to persuade
the North Korea to return to the six party talks?
Wen Jiabao: The Chinese Government consistently calls for making
the Korean Peninsula nuclear free through dialogue and negotiation
and maintaining peace and stability on the peninsula. This is also
the consensus reached by the parties concerned and what the
international community hopes to see. We hope all parties will work
towards this objective. Given the sensitivity of the situation on
the Korean Peninsula, all the parties concerned should be
cool-headed and exercise restraint, refrain from making statement
or taking moves that will escalate tension, and work to create
conditions for resuming the Six-Party Talks at an early date.
To peacefully resolve the Iranian nuclear issue is in the
interests of global peace and stability and easing tension in the
Middle East. It is the best choice that meets the interest of all
the parties concerned. Iran has responded to the package proposal,
and the IAEA has also made its report. We hope the parties
concerned will be patient, show flexibility and work for the early
resumption of negotiations. We also hope Iran will heed the
concerns of the international community and take constructive
steps.
Resolving the two nuclear issues requires committed diplomatic
efforts. Our goal is to bring about eventual peaceful resolution of
these issues. But imposing sanctions will not necessarily get us
there, and may even prove counterproductive. The parties involved
should be cautious about moving towards sanctions.
The EU is active about reaching a peaceful resolution of the
nuclear issue on the Korean Peninsula and is playing a key role in
working for a peaceful solution to the Iranian nuclear issue. China
will maintain close consultation and coordination with the EU and
other parties concerned for the peaceful settlement of the two
nuclear issues.
Reuters: Premier Wen, the second question is on the economy. The
Chinese economy is extremely strong, but some economists worry
about disruptions in the future. Can you guarantee there will be a
soft landing of the Chinese economy and that you will keep your
promise that there would be no surprise on the currency?
Wen Jiabao: China's economy has been growing at an average
annual rate of over 9% during the past three decades. In the last
three years, its annual growth rate has exceeded 10%. Many people
are asking whether China can maintain sustained and long-term
development. My answer is in the affirmative. The key is we have
pursued the right domestic and foreign policy and we are well
prepared to respond to new developments. This is because there are
a number of favorable factors for sustaining China's economic
development. First, the reform and opening up program launched by
China has created the material and technological basis to sustain
its economic development. Secondly, China has the world's largest
population and growing market demand. To expand domestic demand is
a basic policy guiding China's economic development. Thirdly, China
has an abundant supply of workforce whose quality is steadily
improving. It has vast land and fairly rich natural resources and a
high domestic savings rate. Fourthly, as China's reform and opening
up drive deepens, the institutional barriers standing in the way of
economic development will be removed. China will still face
constraints in energy, resources and environmental terms. But
guided by a scientific outlook on development, we are accelerating
economic restructuring and changing the pattern of economic growth
to build a resources conservation and environmental-friendly
society. And this will put China on a path of achieving
people-oriented, comprehensive, coordinated and sustainable
development. So we are in a position to ensure continued and fairly
fast growth of China's economy for a considerable period of time to
come, and we have full confidence in our ability to do so.
China's foreign exchange reserve has increased considerably in
recent years. This is attributed to many factors, especially the
"twin surplus" in both the current and capital accounts in
international payment. Increase in foreign exchange reserve has
improved China's overall national strength as well as its
international payment capability and its ability to fend off risks.
It is true that the rapid and continued increase in China's foreign
exchange reserve has caused the excessive buildup of foreign
exchange reserves in the central bank and oversupply of basic
currency. In view of this, we have given due consideration to the
appropriate use of foreign exchange. In recent years, we have
expanded the use of foreign exchange reserve, by proactively
increasing import of products and advanced technology that China
needs, using part of the foreign exchange reserve to support
monetary reform and enterprise reform, reorganization and
restructuring, relaxing restriction on the use of foreign exchange
by Chinese enterprises and citizens and increasing assets
purchase.
In July last year, we reformed the Renminbi exchange rate
setting mechanism and properly adjusted its exchange rate. Over the
past year and more since then, the managed floating exchange rate
regime has been improved and the development of foreign exchange
market has quickened. The Renminbi exchange rate has seen both rise
and drop, with greater flexibility in scope of floating. Overall,
the value of Renminbi has appreciated by a small margin. You may
have noted that Renminbi has risen by close to 4% against the
dollar. We will continue to deepen the reform of the Renminbi
exchange rate setting mechanism. This means that the floating of
Renminbi exchange rate will be mainly determined by market supply
and demand, and the floating band will be gradually expanded. So
there will be no more "surprise" adjustment in Renminbi exchange
rate.
Times: What book do you most like to read before you go
to sleep at night and when you put the book down which of China's
problems most often keeps you awake?
Wen Jiabao: You are actually asking about my reading and
thinking. Let me quote you some lines from the poems of famous
literary figures, both Chinese and foreign. They will tell you
something about me, what is on my mind and what I read. They are as
follows: "While I have little possession at hand, I care deeply
about my people across the land. Having devoured ten thousand books
and drawing inspiration from ancient thinkers, I have the whole
world in my mind". "To ordain conscience for Heaven and Earth, to
secure life and fortune for the people, to continue lost teachings
for past sages and to establish peace for all future generations".
"Long did I sigh to hold back tears; saddened I am by the grief of
my people". "Lying in bed in my official residence, I heard the
rustling of bamboo outside, and it just sounded like the moaning of
the needy"; "There are two things that fill my mind with ever
increasing admiration and awe: the starry sky above me and the
moral law within me". "You ask why my eyes are always filled with
tears. It is because I love my land dearly".
DPA: In May you promised German Chancellor Merkel that China
will better protect intellectual property, and Merkel intends to
make the issue a priority in dealings with China during Germany's
presidency of the European Union. Is China's failure to act
decisively against piracy damaging its international credibility?
Could this damage Sino-German relations and could this overshadow
other issues you will discuss with Britain and Finland? What steps
will you take to ensure that the world can be confident in China's
promises on IPR after so many years with little change?
Wen Jiabao: Frankly, it is only in recent years that we have
given priority to the protection of intellectual property rights
(IPR) as a matter of strategic policy. This has something to do
with the level of development China has achieved, and China should
be given some more time. But what I wish to stress is that no one
should fail to see the Chinese Government's commitment to
protecting IPR and the steps it has taken. First, the IPR
protection strategy is being pursued with the same importance given
to the national innovation strategy. Second, a national leading
group for IPR protection has been set up to exercise overall
leadership and coordination over IPR protection efforts in China.
Third, we have adopted and revised a number of laws and regulations
on IPR protection. Of them, the most important three laws are: the
Patent Law, the Copyright Law and the Trademark Law. We will
continue to improve the relevant laws and regulations and lower the
threshold for prosecuting IPR-related offences. Fourth, law
enforcement is being strengthened. Both administrative and judicial
protection are provided, which complement each other. We have
launched special national operations against IPR infringement
activities, and 50 centers have been set up across China for
handling IPR violation complaints to step up fight against
copyright infringement and piracy. Fifth, we are working to raise
public awareness of the importance of IPR protection to encourage
consumers, businesses and social groups to play their part in
protecting IPR. Sixth, we have taken an active part in
international cooperation and have ongoing dialogue with the EU on
IPR protection.
In short, China's IPR protection effort will carry the full
force of steel, and it will definitely not be something that is
soft as bean curd, so to speak.
Frankfurter Allgemeine: Do you believe that allowing
citizens to choose government leaders in competitive elections with
multiple candidates would help overcome China 's social problems?
What holds you back from introducing democratic elections to
township level government and above as you said when Prime Minister
Tony Blair visited Beijing?
Wen Jiabao: Democracy is a value pursued by all mankind and a
fruit of civilization created by mankind. However, in different
historical stages and different countries, democracy is achieved
through different forms and in different ways. There is not a
single model. The power of a government comes from the people, and
the government must hold itself accountable to the people and
subject itself to people's supervision. There is no denying that
many problems that have occurred in China have to do with the
performance of the government and the system of selection of
officials. For instance, the industrial accidents and environmental
incidents which have occurred in some places in China were caused
by human faults, particularly by dereliction of duty and corruption
committed by officials. The poor handling of land requisition,
housing demolition and enterprise restructuring in some localities
hurt the interests of local people and undermined social stability.
A major cause of these problems is that the relevant management
systems and supervision mechanisms are not well developed. To
resolve these problems, we are working to reform government
administration and the system for selecting officials, improve
institutional supervision and oversight and fight corruption. I am
confident that as we make continued progress in institutional
reform and the fight against corruption, these problems will
eventually be curbed and resolved. An effective system will prevent
bad people from running wild while a dysfunctional system will keep
good people from performing good deeds and even make them commit
wrongdoing. In this sense, the system is of fundamental importance.
Therefore, when we are pressing ahead with economic reform, we
should also advance political reform including official selection
and the election system.
According to China's Constitution and relevant laws, the system
of people's congress is practiced in China, and leaders of the
national and local governments are elected by the people's
congresses at the same level. Self-governance and direct election
are practiced in about 680,000 villages in China. People's deputies
are popularly elected in counties, townships and cities with no
sub-districts. Indirect elections take place at national and
provincial levels and in cities with sub-districts. Multi-candidacy
elections are practiced in China and the number of candidates
standing for election will increase. However, China is a large
country with a vast population, weak economic foundation and
unbalanced development in different regions. The conditions are not
yet ripe for conducting direct election at higher level of
government. Democracy and direct election in particular, should
develop in an orderly way in keeping with the particular condition
of a country. We are confident that when the people are capable of
running a village through direct election, they will later be able
to run a township, then a county and a province, true to the
principle that our country is run by the people.
Since time is running out, I am afraid we have to stop here. The
last message that I have for you is this: China's development is a
long-term and daunting task. To achieve development, we need peace,
we need friends and we need time.
(Xinhua News Agency, fmprc.gov.cn September 6, 2006)
