Keep China's faith in us; Relationship with China is crucial, says expert

Prime Minister Datuk Seri Najib Razak (L) and China's Premier Li Keqiang at the Great Hall of the People, in Beijing. - EPA

Malaysia is on the right track. We have had a head start by becoming the first Asean country to forge diplomatic ties with the giant republic. Let’s build on that.

IT’S no longer a topic that is discussed in hushed tones at functions attended by diplomats and businessmen – that relations between China and Singapore are strained. It is out in the open.

The irony is that Singapore is the Asean coordinator for ties with China – and the latter has literally told the island republic to buck up.

The latest salvo against Singapore reportedly came from Chinese vice-minister for foreign affairs, Liu Zhenmin, who warned that as a non-claimant state in the South China Sea dispute, the island should stay away from commenting on the issue.

China’s top diplomat urged the republic to focus on coordinating dialogue between China and Asean – in short, he is effectively saying that Singapore is not doing a good job in that department.

China’s impatience with Singapore has been simmering for a while although it has never been out in the open. But in June, Global Times ran a commentary by Chinese Academy of Social Sciences researcher Cheng Bifan under the headline “Singapore has picked the wrong target in its balance of power strategy”.

The newspaper, regarded as a mouthpiece of the Chinese communist party, is also a subsidiary of the powerful People’s Daily.

Basically, China is irritated with Singapore for seemingly siding with the United States over the South China Sea issue.

Hong Kong’s South China Morning Post (SCMP) has reported that Internet users in China have delivered stinging criticisms, labelling Singapore a sycophant of the US, threatening that China would teach the tiny South-East Asian nation a lesson.

Particularly painful is the phrase they often use to mock Singapore: Li Jiapo, a play on the island’s name in Chinese, substituting the first two Chinese characters “Li Jia” or the “Lee family”, it reported.

The problem started after a tribunal in The Hague rejected China’s claims in the South China Sea dispute with Singapore Prime Minister Lee Hsien Loong saying that the verdict delivered a strong statement about international law in maritime disputes.

During a recent trip to the United States, Lee also reportedly told US President Barack Obama that Singapore hoped Washington would “remain actively engaged in the region.”

It doesn’t help that Singapore has allowed the US to deploy its P8 Poseidon spy plane to the city state. The US also operates from Japan and the Philippines, its two other allies.

But since Rodrigo Duterte, whose ancestors came from Xiamen, China, became president, the Philippines has shifted its sights –and is looking at China.

As the unhappiness builds up, the Global Times accused Singapore’s representative at the Non-Aligned Movement summit in Venezuela of trying – but failing – to add an endorsement of the Philippines’ international arbitration case against China’s territorial claims.

It added that the representative had become exasperated and made “sarcastic remarks” when the move was opposed.

The Singaporean envoy, however, hit back at the Global Times, for publishing an “irresponsible report replete with fabrications.”

His protestation, however, was met with defiance from the newspaper’s editor-in-chief, who stood by the article, accusing Singapore of “damaging China’s interests,” the Wall Street Journal reported.

According to envoy Stanley Loh, Singapore did not raise the South China Sea issue or the tribunal ruling at the summit. He said the proposal to revise the summit communique was made collectively by Asean, which wanted the document to reflect regional concerns over recent South China Sea tensions.

But Chinese diplomats and journalists, close to the communist party, have openly accused Singapore of “siding with the US to willingly play the troublemaker” over the thorny issue.

According to National University of Singapore’s Prof Wang Gungwu, it would not be in Singapore’s interest for China to doubt its friendship as the city-state has a big stake in China’s economic development.

Suspicion against Singapore is so great that, rightly or wrongly, some Chinese businessmen have blamed the island republic for holding back the building of the High Speed Rail between Malaysia and Singapore, suggesting that the island republic is “blocking and delaying” Malaysia’s readiness to award the project to China.

SCMP (owned by Chinese tycoon Jack Ma) which monitors events in China closely, quoted Wang Yiwei from the School of International Studies at China’s Renmin University as saying that he believed China’s “disappointment” with Singapore stemmed from Beijing’s initial hopes that the island state could play a role not just to bridge China and Asean, but with the US, the West and the global community.

Singapore had not adequately protected the overall and longterm interests of China and Asean, despite being the coordinator, he said.

“Instead, Singapore suggested that China accept the tribunal’s ruling. This was a huge turn-off for China,” Wang said.

In contrast, Malaysia-China relations have entered a new high. The “biggest deal” is not even the huge amount of businesses coming into the country but our commitment to buy four Chinese naval vessels, which are known as littoral mission ships (small craft that operate close to shore). Two are to be built in China and the other two in Malaysia.

Liu said the two countries were focusing on naval cooperation and that the deal marked a big leap in bilateral ties.

The defence deal also signalled that Malaysia wanted to have closer military-to-military relations with China.

The two nations also signed the framework for the RM55bil East Coast Rail Line, which will be China’s largest investment in Malaysia to date.

Najib, who was on a six-day visit to China, met President Xi Jinping on Thursday.

Malaysia Airlines Bhd also secured many direct flights from China, recently announcing that it would start flying to eight new destinations and 11 new routes in the republic from Kuala Lumpur, Kota Kinabalu and Penang, from early 2017. MAS is also hoping to add a second daily flight between KL and Shanghai in April 2017.

Although Malaysia is the Asean coordinator with the US, Prime Minister Datuk Seri Najib Tun Razak has played a remarkable role, balancing our link with the two superpowers.

And although Malaysia is a claimant to the territorial claims, Malaysia has restrained itself well, issuing cautious statements, without adding fuel to the rivalry between the two giants.

Najib’s diplomatic skills benefit Malaysia greatly. The domestic political fight should not be used to disrupt the strong ties between Malaysia and China.

Sarcastic innuendoes that “Malaysia is Red” does not augur well for Malaysia, which risks earning the wrath of China, at a time when the market is terribly weak.

Claims that the proposed ECRL project was overpriced, that the soft loan will come to RM92mil per kilometre, is nothing short of amusing.

China’s offer is said to be lower compared to what was offered by Japan and other European countries – and it comes with a soft loan.

The payment is over a tenure of 20 years and in the first seven years, Malaysia will not have to pay anything – neither interest nor repayment. Surely, that is attractive.

Najib has lobbied for China to increase its import of palm oil as it has dropped 50% in the first six months of the year.

Apparently, this was due to some negative reports and wrong perception of the nutritional value of palm oil, a common tactic used by Western countries to promote soy bean and other vegetable oils.

China used to be the largest importer of palm oil from Malaysia but it has fallen to third place, after India and Europe.

It is important that domestic politics should not come at the expense of losing the support of the Chinese. We are talking about the rice bowl of Malaysians and we don’t want selfish politicians to throw sand into our rice bowl.

It is one thing to score political points against Najib, by ridiculing his approaches to China for business deals, but it should not affect our economy.

For example, the number of Chinese visitors to Taiwan has reportedly fallen 22% since the island’s Beijing-sceptic government took office in May, with tourism operators saying that the industry is in a slump.

Hotels are only half full and thousands of tour buses are sitting idle, with observers saying the decline is due to China limiting tour groups to Taiwan amid rapidly cooling cross-strait ties, according to a report.

There was a boom in mainland tourists to Taiwan in recent years under former President Ma Ying-jeou’s Beijing-friendly government, with Chinese visitors accounting for about 40% of the total 10 million tourists last year, according to government figures.

However, in the months since President Tsai Ing-wen took office up to Aug 23, mainland visitor numbers have reportedly fallen 22.3% compared with the same period last year.

In Hong Kong, news reports of resentment against Chinese mainlanders and calls by some HK politicians for independence have resulted in a backlash with Chinese tourists staying away from HK.

The SCMP reported the decline in the month of the mini-golden week holiday – when Chinese tourists go on vacation – and this came as a blow to hopes that the city’s battered retail sector – which heavily relies on tourism spending – could improve soon.

Government statistics showed May retail sales decreasing 8.4% on a yearly basis after the April decline narrowed to 7.5%, from a 9.8% dip in March, marking the 15th consecutive month of contraction.

Hong Kong Retail Management Association chairman Thomson Cheng Waihung has predicted a double-digit decline in the first half of this year, which would be the worst in over a decade, as its members signalled that sales in June were “even worse than May”.

The reality is that China has become a economic superpower and we have had a headstart by becoming the first Asean country to forge diplomatic ties with China.

Through the efforts of the Chinese community here, the special ties have been further cemented, and that has allowed us to have a special place in the heart of China.

Malay extremists should learn to appreciate this special link, which has benefited Malaysia greatly, before they make careless and hurtful racist remarks that serve little purpose.

The billions pouring into Malaysia is staggering and surely, we are the envy of many other Asean countries. That is because China trusts us and we should keep and build on that faith in us.

By Wong Chun Wai The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

Relationship with China is crucial, says expert

Real talk: Dr Jacques delivering a public lecture on ‘China and the World in the 21st Century’, at the Institute of Diplomacy and Foreign Relations.

KUALA LUMPUR: The Sino-Malaysian relationship is crucial for the future of Malaysia, observed a China specialist.

“What is pivotal for Malaysia is to find the right way to engage China.

“There are going to be lots of problems and difficulties, and arguments within the country over this, but the key thing is that the process of engagement leads to the deepening of the relationship between Malaysia and China.

“There ain’t no escape route to Washington,” said Dr Martin Jacques.

Dr Jacques, the author of When China Rules the World: The End of the Western World and the Birth of a New Global Order, is in Malaysia to share his insights on the rise of China and its impact to the world.

He was speaking at a talk entitled “China and the World in the 21st Century” at the Institute of Diplomacy and Foreign Relations (IDFR) yesterday, which was jointly organised by International Move­ment for A Just World and IDFR.

Analysing Malaysia-China ties, Dr Jacques said China liked and respected Malaysia, which was the first country in the region to recognise China in 1974, despite the fact that both were claimants in the resource-rich South China Sea.

“The Chinese do appreciate longevity in the relationship. You are seen as an old friend.

“I have never heard the Chinese leaders or people in its Foreign Ministry being critical of Malaysia.

“They always have good things to say, and even love to use Malaysia as an example of how you can have differences and a strong relationship at the same time,” he told reporters after the talk.

On balancing between the participation in China’s Belt and Road and in the US-led Trans-Pacific Partner­ship (TPP), Dr Jacques’ advice for Malaysia was to make suggestions and take initiatives on the Maritime Silk Road as he did not think TPP is “going to happen”.

“I didn’t think it was a good move for Malaysia to sign up for TPP. That was a mistake,” he said.

Instead, Malaysia should “go for it” in terms of cooperation with China on the Belt and Road and think more strategically on what it wants with China, he added.

During Prime Minister Datuk Seri Najib Tun Razak’s recent visit to Beijing, he witnessed the signing of 14 business-to-business memorandums of understanding (MoUs) valued at RM143bil, and the signing of 14 government-to-government MoUs to strengthen bilateral trade and economic, cultural and defence cooperation.

Financing for the RM55bil East Coast Rail Line was also secured from China

By Tho Xin Yi The Star

Martin Jacques: China's rise to power

https://youtu.be/7NiIv9Nje3o

"How China will Change the World" by Dr Martin Jacques
https://youtu.be/ULMjBzESySc

Related articles:

Reel in the Chinese investments 

BARELY after Prime Minister Datuk Seri Najib Tun Razak ended his four-day official visit to China on Friday, The Star was told by an investment adviser that some businessmen in China could not wait to speed up their investment decisions in Malaysia.




Analysis by Joceline Tan

Game-changer from China visit

Datuk Seri Najib Tun Razak’s state visit to China has yielded an amazing buffet of MoUs that could set the momentum for an economic spur ahead of the general election next year.

‘Malaysian firms ready to compete’

PETALING JAYA: The mega deals have been signed with China. Malaysia must deliver and Malaysian firms say they are ready to hit the ground running.

Related post:

Malaysia-China ties to a new high

Malaysian PM Najib given official welcome at China's Great Hall of the People https://youtu.be/v87tJF3uO7U   Prime Minister ...

Malaysia-China ties to a new high

Malaysian PM Najib given official welcome at China's Great Hall of the People

https://youtu.be/v87tJF3uO7U

 

Prime Minister Datuk Seri Najib Razak and China's Premier Li Keqiang inspect honour guards during a welcoming ceremony at the Great Hall of the People, in Beijing, China, November 1, 2016. Reuters

BEIJING, China: Prime Minister Datuk Seri Najib Razak said his current visit to China will propel bilateral ties between the two nations to a new high.

"We have said that bilateral relations are at a historic high. I can say that with confidence.

"But more so, this visit will being it to a new high because the comprehensive nature of our strategic partnership has now been translated into meaningful action," he said in his opening remarks at the bilateral meeting between Malaysia and China at the Great Hall of the People here.

Najib also thanked his counterpart Li Keqiang, seated across from him, for the warm welcome given to the Malaysian delegation.

"It's warm in the room, but outside it's a little cold," Li replied in jest. The weather in Beijing is currently chilly as winter approaches, with a high today of 11.7 degrees Celsius and an overnight low of - 2.2 degrees.

Najib was given earlier given an official welcoming ceremony at the Great Hall of the People here.

Najib, who is on a six-day official visit, was welcomed on arrival by China prime minister Li Keqiang. Also present were ministers and government officials accompanying the prime minister's delegation.

The national anthems of both countries were played, followed by Najib's inspection of the guard accompanied by Li. The Malaysian prime minister was also given a 19-gun salute.

Earlier, Najib had attended the Malaysia-China Business Forum, titled "Strengthening Cooperation, Building Opportunities". The luncheon was attended by more than 400 Chinese and Malaysian businessmen. - New Straits Times

Xi vows to cement all-round strategic partnership with Malaysia

Chinese President Xi Jinping (R) meets with Malaysian Prime Minister Najib Razak in Beijing, capital of China, Nov. 3, 2016. (Xinhua/Li Xueren)

Chinese President Xi Jinping met with Malaysian Prime Minister Najib Razak in Beijing on Thursday, pledging to boost cooperation with the country in diverse areas and cement their all-round strategic partnership.

Xi hailed the progress of relations since diplomatic ties were established 42 years ago, citing mutual respect, trust, win-win cooperation and close communications.

He urged both countries to maintain frequent high-level exchanges, deepen political trust, keep to the right direction of bilateral relations and continue to support each other on issues related to each other's major concerns.

Xi called on the two sides to combine their development strategies, and to lay a solid foundation for stronger trade cooperation.

China welcomes Malaysia's participation in the Belt and Road Initiative, and is ready to work with the country to increase cooperation in areas such as infrastructure, energy, technology, agriculture and finance, he said.

Xi also urged stronger bilateral cooperation in education, culture, health, media, and in fighting terrorism and cross-border crime.

Najib congratulated the successful convening of the sixth plenary session of the 18th Communist Party of China Central Committee last week, and praised China's economic and social development.

It is proven in practice that socialism with Chinese characteristics is a correct choice for China, he said.

Calling the two countries friendly neighbors and trustworthy friends, he said Malaysia-China ties are currently at their highest level.

Malaysia is glad to see China's Belt and Road Initiative get a warm response, he said, vowing to facilitate the cooperation in trade, transportation, and port construction, with China under the Belt and Road framework.

Malaysia is committed to boosting ASEAN-China relations, he added.

Najib is on an official visit to China from Oct. 31 to Nov. 5. Xinhua

Najib’s visit reveals feeble US rebalance

Malaysia has agreed to buy four Chinese naval vessels that operate close to shore, after the country's Prime Minister Najib Razak met with Chinese Premier Li Keqiang early this week. Malaysia usually purchased military equipment from the US and the latest move marks its first significant defense deal with China. Some have called it a "new milestone." The two sides signed 14 agreements worth 231.8 billion yuan ($34.28 billion) on Wednesday, and Najib called it a "historic achievement."

Commentaries speculating that Najib is becoming the "second Duterte" in Southeast Asia and that Malaysia is "another Asian domino falling toward Beijing" have run wild in mainstream Western media. The New York Times contended that "American efforts to contain Chinese ambitions in the South China Sea depend on a ring of allies, but the region's united front may be crumbling."

Najib said in a Chinese media outlet recently that former colonial powers should not "lecture countries they once exploited on how to conduct their own internal affairs today." The tensions between Malaysia and the US brewed by Washington's interference in Malaysia's internal affairs are similar to those between the US and the Philippines caused by the former's accusation against Duterte's human rights abuses during its anti-drug campaign.

The US' sense of superiority in politics and morality often makes it point its fingers at developing countries. In 1993, it forcefully inspected a Chinese freighter suspected by its intelligence service of carrying weapons and ended up finding nothing. It launched attacks on Iraq over its alleged ownership of weapons of mass destruction, but faced the same fate.

Chinese people don't think that Kuala Lumpur is leaning toward Beijing. China and Malaysia are developing their ties steadily. China has been Malaysia's biggest trading partner and replaced the US to become its largest investor in 2015. The two have minor territorial disputes but have managed them well. China's relations with neighboring countries ought to be like this.

Friendly ties between China and Malaysia do not exclude a third party. Defense cooperation, which displays a higher level of strategic mutual trust, should not be labeled as "a turning point for the region."

The fears of US and Western opinion reveals that the US rebalance to the Asia-Pacific is eyeing unrealistic goals, which are to form an alliance system in the West Pacific that includes most countries so as to contain China. The West views China as an expansionist imperial state like Japan used to be in the past, and requires regional countries to be "loyal" to Washington.

The rebalancing strategy does not hold water. China has never thought of military expansion as Japan did. It cherishes peace and stability like all regional stakeholders. China is sincere in tackling territorial disputes through peaceful negotiations. A "nightmare" in the South China Sea is nothing but an illusion created by the US and Japan.

Washington should reflect upon itself. It is an external country and its presence in the region should contribute to peace and stability. It will not stay long if it keeps driving a wedge between regional countries. - Global Times

Related:

 

Malaysia and China set trade target of RM511bil, usher new era of strategic partnership

In "civil liberties"

Timely superpower funds from China to ease woes

In "American , Asean , Azmi Sharom , China , Economy and Business , Malaysia , Military , Obama , Politics , South China Sea , USA , US Hypocrisy"

Chinese President Xi Jinping visiting Malaysia and Indonesia to witness signing of pacts

In "civil liberties"

Don't worry about China slowdown !

Last evening, Beijing time, Premier Li gave the most anticipated speech at Davos. One day after China's GDP came in at 7.4 percent, Li assured the packed audience, of international business and government leaders, that China will avoid a hard landing, continue its ongoing reform and restructuring and ensure a prolonged period of sustainable future medium-to-fast growth.

Even before the release of the GDP numbers, a number of Western media and policy pundits were predicting a China stall. Issues with the real estate sector, local government debt, SOE intransience, shadow banking, over capacity and a weak global economy were cited as the factors which would continue to push growth rates lower in the future. But even amongst the hardened doubters, there were signs of dissension, with the Wall Street Journal grudgingly indicating respect for China's handling of its economic affairs.

Premier Li: Don't worry about a China slowdown

The 2014 results represented the slowest growth in 24 years and the first time the government has missed its target on the downside. But Li was in no way defensive, while acknowledging China's 10-trillion-dollar economy will continue to face downward pressures in 2015, Li indicated that the country will avoid systemic financial risks and will improve its quality of growth to ensure an "appropriate" pace of expansion. The rise in urban and rural employment numbers, rising real income levels, moderate inflation, a 50 percent individual savings rate, a 5 percent decrease in energy per unit of GDP, significant growth in China's tertiary industries/services and record numbers of new businesses, added meat to his assertions.

Li, in essence continued the line of thought he voiced at the Summer Davos in Tianjin, where he indicated China's actions are predicated on the realization that its economic growth pattern wasn't sustainable and that to avoid the "Middle Income Trap" China's economic engine needed to be restructured to be more efficient and competitive.

Highlights

"We will continue to pursue a proactive fiscal policy and a prudent monetary policy," Li said. "We will step up anticipatory adjustment and fine-tuning as well as targeted macro-regulation, in order to stabilize economic growth, upgrade its structure and achieve better quality and performance."

Li is clear that China does not regard the fiscal and monetary policy tools Western governments are limited to, as an effective means of transforming its economy.

"For the Chinese economy to maintain medium-to-high speed of growth and achieve medium-to-high level of development," Li said, "China must properly use the hand of the government and the hand of the market, and give full scope to both the traditional and new engines of growth."

This highlights a sharp contrast between China's "Big Hand" (government) over the "Invisible Hand" (market) approach, and Western democratic/capitalist models, which put the market on top and government as a kind of enabling and clean up mechanism.

"To foster a new engine of growth," Li said, "we need to encourage mass entrepreneurship and innovation, and mobilize the wisdom and power of the people."

The word innovation was repeated 33 times during Li's Summer Davos speech and it continues to be central to Li's vision of a more prosperous China. With 3 of the top 5 mobile phone manufactures and a host of other technological innovators like Alibaba and Tencent, there is a new sense of confidence within and outside about China's future.

"To transform the traditional engine of growth, we need to focus on increasing the supply of public goods and services, and strengthening the weak link of the economy," the premier said.

This references the need to make China's SOEs, government and financial sectors more efficient and responsive to the needs and pressures of the market.

China, he added, "will continue to promote trade and investment liberalization and facilitation, and open up its service sector, central and western regions as well as the capital market wider to the outside world."

This is a list of areas which China will be opening up to more investment internally and externally. The Shanghai FTZ has been used as a model and will be extended to Fujian, Tianjin and Guangzhou. They represent the cutting edge of a new kind of economic development platform which will be extended inland once the models have been proven.

"China will encourage its companies to explore the international market, and work for common development with other countries through greater openness towards each other," Li said.

Premier Li is signaling strong support for globalization and indicating a desire to work regionally and internationally to create better trade mechanisms. The New Silk Road, extension of transportation infrastructure into Southeast Asia, AIIB, BRICS Bank etc… are strong indicators of this desire which is essential to China's resources imports and finished goods exports.

So, what can we expect from China, the second largest economy in the world in 2015?

Some say the single biggest risk for the economy is still the interlinked and rising problems associated with shadow banking, local government and corporate debts and a stagnant real estate sector. But at about 54 percent of China's GDP, China's debt is far below most developed nations. The key will be how local governments are funded and regulated. This touches on the real estate sector as well which is badly in need of reform but because it represents 25 percent of the economy it must be handled carefully.

Continued increase in consumption. Consumption now accounts for 51.2 percent of GDP in China. Though it is still considerably lower than the 70 percent average for the developed countries, it continues to move in a positive direction. The services sector has now overtaken the industrial sector as the largest segment of the Chinese economy and seems to be following the government's playbook to re-balance the economy.

China is developing more confidence in its ability to innovate and lead cutting-edge FMCG markets and this trend will continue further balancing the public-investment and export-driven, forces which drove the economy in the past.

China has also taken some steps to solve its overcapacity issues. A two pronged approach which is shifting heavy industrial capacity in areas like transportation infrastructure to projects in neighboring areas and the world stage. For example the merging of China's major railroad companies and the projects they will being doing in the Mekong delta region. The second prong is the identification and closing of first and second generation industrial plants which is how China has been able to achieve a 5 percent increased efficiency in energy use per unit of GDP.

In the financial sector expect more pressure on the big banks to be more SME focused in exchange for more liberal controls of lending and deposit rates. An example: the lifting of the deposit rate ceiling, the deposit insurance draft plan being considered and the new property registration system will standardize the markets and provide new financial product opportunities. To make things more transparent the government has adopted new budgetary laws, local government debt regulations and encouraged state-owned enterprises to adopt mixed ownership structures.

It is clear though that fiscal and monetary policy will be part of the symphony not the main players. Premier Li was clear that he opposed another monetary stimulus to push growth rates and instead, would rely primarily on structural reforms. A thought which was expressed in Davos on Wednesday, by Zhou Xiaochuan, governor of the People's Bank of China, who also expressed a willingness to sacrifice growth for stability.

"If China's economy slows down a bit, but meanwhile is more sustainable for the medium and long term, I think that's good news," he said.

China's growth cannot be delinked from the global context. As the main driver of the world's economy since the US mortgage crisis meltdown, China has taken on a new role. Just as importantly and expanding China needs access to raw materials if it intends to consume and export finished goods. A resurgent US will help China, but a stagnating EU will hurt it. These seem to be the dominant trends which WTO started and which will carry on for some years.

The premier said China will go full speed ahead with liberalizing interest rates, allowing markets to play a greater role in setting prices, in forging trade agreements and opening up its financial system.

"We will not be afraid of difficulties, and we will continue to move along the path of reform and restructuring," Li said.

All of this, he suggested, was not only in China's interests but also that of the global economy.

"China's reform and development will bring more opportunities for the world."

China Economic path firm, despite lower growth

Since China revealed its 2014 annual growth rate of 7.4 percent on Tuesday, there has been heated discussion worldwide. Some observers cited the figure, the lowest in China since 1990, as proof of the lost glory of the Chinese economy.

Several Western institutes predicted that China's economic growth would tumble to about 6.5 percent in 2015 and some even proclaimed that 2015 would be the last year that China would see growth figures above 6 percent. Last week, a column in the Financial Times said the Indian economy may outstrip China's this year.

When China's GDP growth was above 10 percent, many voices expounded that such a high rate would be harmful. However, just as China is committed to economic restructuring and a turn to the "new normal," there appears to be more catcalls and scary predictions for the future. We have to be unswerving in our commitment not to return to the GDP-oriented path.

GDP figures are so favored by the media as they are easy to grasp. But China has passed the era of GDP-fixation and Chinese people now harbor more expectations for economic development. Despite continued pursuit of wealth, we highly value safety, environmental protection, equal opportunity and explicit rules. With money, there should also be dignity.

Chinese economic and social development has entered an era of multiple targets, which will become more effective. But sometimes the effects are invisible. This makes it harder to measure than what GDP does.

It's different in India. Long overshadowed by China, it is keen to become the best in some aspects. It is in dire need of evidence to show that it is not inferior to China.

Even if the Indian economy does outstrip China's one day, the impact on the Chinese public will be far less than on its own people, since India has been waiting for the outcome for so long. The West seems to be also long expecting the day. Some Western media attach more significance to India's overtaking China than Chinese people do.

China's GDP growth is unlikely to always rank top of the global list and we won't modify our set direction in social and economic development.

The "new normal" in the Chinese economy doesn't mean stagnation nor recession, but a strategic adjustment toward quality and sustainable development. We have such a widespread capacity to push forward economic and social development and meet people's expectations for a better life.

China's growth of 7 percent maintained in the period of economic and social restructuring is no less significant than 10 percent in the past times of extensive development. While the Chinese government is capable of achieving higher growth, its choice of lowering the rate deserves more praise.

China has never been applauded by the West in its development since the end of the Cold War. We have grown used to this. We need to stay firm to achieve our target of deepening reform.

China newly elected President Xi Jinping and Premier Li Keqiang

China has a new president. The National People’s Congress has elected Xi Jinping, General-secretary of the Central Committee of the Communist Party of China as the president. The 60-year-old Xi Jinping, is expected to lead the country for the next decade.

The handover of power, in the world’s most populous nation.

Xi Jinping is elected as President by nearly 3,000 deputies of the National People’s Congress. Congratulations from his predecessor Hu Jintao.

The NPC has given Xi Jinping the platform to lay out policies to build the “prosperous nation”, “harmonious society”, and “beautiful China”, which he describes in public appearances.

Xi Jinping: Man of the people, statesman of vision CCTV News - CNTV English

• Xi Jinping shakes hands with Li Keqiang  

VIDEO: LI KEQIANG APPOINTED CHINESE PREMIER CCTV News - CNTV English


Li Keqiang was endorsed as Chinese premier Friday morning at the ongoing session of the 12th National People's Congress (NPC), the country's top legislature.

Nearly 3,000 NPC deputies voted to approve the nomination of Li, by newly-elected President Xi Jinping, as the candidate for premier at the ongoing parliament session.



He has been the seventh premier since the People's Republic of China was founded in 1949, replacing Wen Jiabao who had headed the State Council since 2003.

Li, born in 1955 in Anhui Province, joined the Communist Party of China (CPC) in 1976 and graduated from Peking University with law and economics degrees.

After working as provincial leaders in Henan and Liaoning provinces, he was elected to the Standing Committee of the Political Bureau of the CPC Central Committee in 2007 and appointed vice premier in 2008.

Li was re-elected to the Standing Committee of the Political Bureau of the CPC Central Committee in November.

Related posts:
China all out to rejuvenate the nation
China massive restructuring to boost efficiency, fight corruption