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China's EU envoy urges tough line against Trump's trade policy

Handelsblatt | Updated: 2018-07-10 13:09
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Handelsblatt: But isn't the economic Belt & Road Initiative by President Xi Jinping exactly the opposite – using an economic vehicle to increase China's political influence in the countries involved?

Zhang: China proposed the initiative in 2013 when the world economy was still recovering from the impact of the international financial crisis. It is a platform to enhance economic cooperation and development. Therefore it has been welcomed by many members of the international community. It's a misperception to insist on linking the initiative with geopolitics. But we have the patience to do more for clarification and communication.

Handelsblatt: How do you explain the high level of mistrust China is facing in Europe?

Zhang: I don't see mistrust in Europe concerning the Belt & Road Initiative – actually many business people are very eager to participate. Some others might still be watching and there may be even skeptical voices. This is understandable because the initiative is still young, and it takes some time to better understand it.

Handelsblatt: The perception so far is that the initiative is mostly about Chinese money for Chinese contractors.

Zhang: An important principle for implementing the Belt & Road Initiative is extensive consultation, joint contribution and shared benefits with the partner countries. That principle also applies to financing cooperation.

Handelsblatt: The EU has strict rules for transparency and public procurement. The projects don't always meet those standards as was the case with the new railway between Belgrade and Budapest.

Zhang: The Belt & Road Initiative follows market principles and globally recognized WTO rules. But different participants may have different levels of development and therefore different realities on the ground. We have to take into account the local conditions as well.

Handelsblatt: That means less strict rules in non-EU countries such as Serbia?

Zhang: The Belgrade – Budapest railway is an important infrastructure project in the region that will boost economic development, and of course it will follow local rules. For the project that's within Europe, it will of course follow European rules.

Handelsblatt: Coming to the end a more principal question. You say Business is Business, that's an important sentence…

Zhang: Not only for China but for everyone…

Handelsblatt: China is becoming an economic world power, but what about its political ambitions? Is it only about business?

Zhang: For China the most important political task is delivering a good life to our nearly 1.4 billion people. This is not easy to achieve. In the past 40 years we have successfully lifted 700 – 800 million people out of poverty.

Handelsblatt: Congratulations.

Zhang: Thank you, but we're not complacent. There is still a lot of room for further improvements. In terms of income per capita our ranking is behind 80 in the world. We still have 30 to 40 million people living under the poverty line today. And we have 80 million people with disabilities; it's not easy delivering a good life to them. That's why Chinese people want peace and stability in the world. Our development is still a daunting task.

Handelsblatt: Is there something Europe can learn from China's economic success?

Zhang: I would say that China has a lot to learn from Europe – your managerial expertise, environmental protection and innovation, for example.

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