Ambassador cites China's economic, political reforms

MANILA, Philippines - A week before China celebrates the 60th founding anniversary of the People’s Republic, Chinese Ambassador to Manila Liu Jianchao cited the great strides in the country’s economy – including a GDP of $3.8 trillion in 2008, 77 times more than in 1952, and foreign trade of $2.5 trillion, up from just $1.14 billion six decades ago – as well as political reforms that have seen greater popular consultation and rural elections.

Speaking before the Rotary Club of Makati West at the Mandarin Oriental hotel, Liu said that major reforms in the decision-making process have included the setting up of a structure under which “major decisions are made only after full consultations” and “transparency in the personnel system.”

“Election was introduced in the rural level 10 years ago, and 64,000 village committees were set up as of end 2004, all of them directly elected,” he said, adding that such reforms are continuing, as “every year in China, new political development towards greater openness, transparency and accountability” are taking place.

But he admitted that despite the remarkable economic achievements over the last 60 years, China still remains a country “big and small, strong and weak.”

“Though China’s GDP ranked the third in the world in 2008, in per capita terms, China has only $3,000, placed No. 104 in the world. China is among the top three traders worldwide, but in terms of service trade, China is only a beginner. In the first half of 2009, China’s foreign currency reserves surpassed $2 trillion. Four out of the top 10 banks in the world are from China. However, Shanghai is still a place far from a global financial hub. 60 percent of China’s population is rural residents and 135 million people are living on under a dollar a day,” Liu said.

He further acknowledged that “the way will not only be long, but bumpy with difficulties and challenges,” including “energy and resource constraints, ecological and environmental pollution, and lagging scientific and technological innovation.”

“There remain institutional obstacles slowing down the development of socialist market economy and further reforms still face deep-seated problems. The foundation of agriculture remains weak and rural areas still lag behind in development. The task is still arduous to narrow the urban-rural and inter-regional gap in development and promote balanced economic and social development. Efforts to improve democracy and the legal system have fallen somewhat short of the need to expand people’s democracy, and political restructuring must be deepened. Cultural undertakings are thriving as never before, but the people have growing needs and have become more independent, selective, and diverse in thinking, calling for a more advanced and enhanced culture,” he said.

But he also said China remains committed to “the right direction of development” which will not only enable “its people to move steadily toward prosperity and happiness, but also contribute substantially to peace and stability of the world, the growth and prosperity of the world economy and the progress of human civilization.”