Premier Wen Jiabao’s tour of Pacific island nations provides China with new opportunities to enhance relations with these countries
This spring, China’s relations with Pacific island nations are expected to warm further, although its relations with some island countries still are frosty.
Chinese Premier Wen Jiabao visited Australia, Fiji and New Zealand in early April, and attended the opening ceremony of the First Ministerial Meeting of the China-Pacific Island Countries Economic Development and Cooperation Forum held in Fiji April 5-6. There was a lot of interest in Wen’s trip, especially his attendance at the opening ceremony of the forum, since of the 25 countries that have established so-called “diplomatic relations” with Taiwan, six are Pacific island nations.
“Premier Wen’s visit to Australia, New Zealand and Fiji will have important significance in further increasing mutual political trust, enhancing mutual beneficial cooperation in various areas and promoting the deepening of China’s relations with the three countries,” Liu Jieyi, Director General of the Department of North American and Oceanian Affairs of the Chinese Foreign Ministry, said at a press conference on March 27.
Uranium accord with Australia
“I am visiting Australia to further the development of China-Australia relations in all fields. I look forward to exchanging views with Prime Minister John Howard and other Australian leaders on China-Australia relations and international and regional issues of mutual interest,” Wen said upon his arrival at the airport in Perth, Australia, on April 1.
After the two prime ministers met, they witnessed the signing of a series of inter-government agreements and documents, including an agreement on bilateral cooperation in the peaceful use of nuclear energy and an agreement on the transfer of nuclear material. According to the agreements, China will import approximately 20,000 tons of uranium from Australia within the coming 10 years.
Australian Minister of Industry, Resources and Tourism Ian Macfarlane confirmed that the country’s uranium production plan has been scheduled to 2008 and a large quantity of uranium exports to China may start in 2010. Because of the sensitivity of the issue, since uranium is used in nuclear weapons as well as for energy production, China’s agreement on the transfer of nuclear material has caught the attention of the international community.
Japan’s Jiji Press, Kyodo News and Nihon Keizai Shimbun reported on the news soon after the signing ceremony took place. According to Kyodo News, because of China’s rapid economic development, the country is eager to import uranium from Australia since China hopes to quadruple its nuclear power production capacity by 2020. China’s domestic annual uranium ore production currently is only 700 tons.
As a member of the International Atomic Energy Agency (IAEA) and a signatory to the Non-Proliferation Treaty (NPT), China will strictly observe their provisions and regulations, Wen said.
He added that bilateral cooperation between China and Australia on nuclear energy is solely for peaceful purposes, with safeguards provided by related agreements signed by the two sides. “We believe that this safeguard mechanism will ensure that the nuclear cooperation will not be used for non-peaceful purposes,” Wen said.
Howard expressed satisfaction that the safeguards would be enforced. He said it was on that basis that Australia and China have entered into agreements on cooperation in nuclear energy.
Australia has the world’s largest uranium reserves, accounting for 40 percent of the world total. But the country has clear restrictions on uranium exports, selling only to NPT signatory countries. Meanwhile, the importing country must independently sign a security agreement with Australia ensuring that the uranium is only used for peaceful purposes.
More energy cooperation
Sino-Australian cooperation on energy resources has a strong base. Of the $27.3 billion bilateral trade volume in 2005, energy and mineral trade accounted for 60 percent. China imported a total of 270 million tons of iron ore last year, 112 million tons of which came from Australia. In June, the first shipment of natural gas from Australia will arrive in south China’s Shenzhen. The two countries also have broad prospects for technology cooperation and resource exploration, such as coal, copper and nickel.
Dai Jun, who works at a Chinese organization in Australia, is optimistic about the future development of Sino-Australian nuclear cooperation. He noted that with the increase in the proportion of nuclear power-generated energy in the coming years, China’s uranium imports would increase. “The current 20,000 tons is only the primary negotiating figure and with the deepening of cooperation, uranium imports will surely exceed that figure,” said Dai.
Prior to Wen’s Australia visit, trilateral security talks among the United States, Japan and Australia were held in Sydney in March, covering security issues in the Asia-Pacific region, especially in China. Some observers say the talks had the goal of containing China’s rise.
“It is impossible for Australia to join the U.S.-Japanese alliance in containing China,” said Li Lijia of the China Institutes of Contemporary International Relations, pointing out that China’s rapid economic development brings great opportunities for Australia.
As the largest country in Oceania, Australia has great geopolitical advantages. It connects the Asia-Pacific region with the West. With the strong economic growth in Asia in the mid-1990s, Australia’s diplomatic emphasis transferred from Europe and America to Asia and it began to take an active part in Asia-Pacific regional affairs.
Bilateral trade between China and Australia has surged in recent years. In 1972, when the two countries formally established diplomatic relations, the total trade volume was only $60 million. However, the figure reached $27.2 billion last year. China has now become Australia’s second largest cargo trade partner and the second largest export market. By the end of 2005, Australia had invested in 7,401 Chinese projects with a contractual investment of $14.75 billion and actual investment of $4.49 billion. Chinese enterprises invested in 272 projects in Australia with actual investment reaching $500 million.
“The close economic relations will surely require a boost in political relations between the two countries,” said Li. According to her, Wen’s visit came at the right time to increase the political trust between the two governments and increase Sino-Australian cooperation in all fields. Politically, Wen’s visit can help weaken the “containment” of China by some Western countries and enhance trust between China and Australia. “Taking its own national interests into consideration, Australia naturally does not want to be involved in any conflicts with China,” Li said.
Partnership with Fiji
After concluding his official visit to Australia on April 4, Wen arrived in Fiji, the second leg of his tour.
After Wen and his Fijian counterpart Laisenia Qarase held talks upon the Chinese premier’s arrival in Nadi, the two announced in a joint press communiqué that they would establish and strengthen the “important cooperative partnership” between the two countries. Meanwhile, Fiji recognized China’s full market economy status and the two countries decided to form a joint economic and trade committee.
Wen described the China-Fiji relationship as “a model” for relations between China and the island countries. The premier is the first Chinese head of government to visit island countries in the Pacific Ocean, while Fiji was the first among the tiny island nations to forge diplomatic ties with China in 1975. “Both in the Asia-Pacific region and in the category of developing countries, there is a basis and a need for the two to enhance bilateral ties,” he told Qarase.
Qarase expressed satisfaction with the growth of bilateral ties and thanked China for its assistance to Fiji in its socioeconomic development.
One important topic in the talks was the Taiwan issue, which Wen said was a core interest for China. “The one-China principle is the political foundation of China-Fiji relations and a key to ensuring the further growth of bilateral ties,” he said, adding that China appreciated Fiji’s adherence to the one-China policy and opposition to “Taiwan independence.”
Qarase reiterated that the Fijian Government adheres to the one-China policy, recognizes the Government of the People’s Republic of China as the sole legitimate government representing all of China and views Taiwan an inalienable part of China.
After the talks, the two governments signed a number of cooperation agreements, with both Wen and Qarase attending the signing ceremony.
During his stay in Fiji, Wen also participated in the opening ceremony of the first Ministerial Meeting of the China-Pacific Island Countries Economic Development and Cooperation Forum held in Nadi. The theme of the forum was “Promoting Cooperation for Common Development.”
Heads of state or government, ministers and other senior officials from Australia, China, the Cook Islands, Fiji, Micronesia, New Zealand, Niue, Papua New Guinea, Samoa, Tonga and Vanuatu attended the meeting.
The forum was first proposed by Chinese Deputy Foreign Minister Yang Jiechi after he attended the 17th Pacific Islands Forum in October 2005. He hopes to promote China’s cooperation with Pacific island countries in environmental protection, tourism, agriculture, fishing and health care through the forum.
The meeting this year provided an opportunity for over 200 Chinese enterprises to exchange ideas and establish commercial ties with their Pacific island counterparts. It also provided a platform to actively promote trade and investment opportunities between China and Pacific island countries and enhance development assistance by the Chinese Government to individual Pacific island countries through bilateral arrangements.
In recent years, China and Pacific island countries have enjoyed an increasing political trust, more commercial and human exchanges and deepening economic and trade cooperation in various fields.
According to the Chinese Customs statistics, the bilateral trade volume in 2005 was $838 million, a year-on-year growth of 58 percent, among which China’s exports were $424 million and imports $414 million, a year-on-year increase of 93 percent and 34 percent, respectively.
By the end of 2005, China’s aggregate (non-financial) direct investment in Pacific island countries and territories reached $16.87 million. The contractual value of engineering projects was $1.644 billion, and turnover $906 million. The contractual value of labor service cooperation stood at $436 million, and turnover at $374 million. There were about 3,000 contract workers working in this region at the end of last year.
Taiwan issue a factor
However, some Pacific island countries do not have diplomatic relations with China, having established so-called “diplomatic relations” with Taiwan. “We hope these countries can establish or normalize diplomatic relations with us because this is in line with UN General Assembly Resolution 2758, which recognizes the People’s Republic of China as the sole legitimate government of China,” said Liu Jieye of the Chinese Foreign Ministry.
Currently, six countries in this region, including Nauru, Palau, Solomon Islands, Tuvalu, Kiribati and Marshall Islands, do not have diplomatic relations with the People’s Republic of China.
According to Zhai Kun, Director of the Division of Southeast Asian and Pacific Studies of the China Institutes of Contemporary International Relations, the “Taiwan independence” forces are very active in a very small number of South Pacific island countries and their stances on the Taiwan issue change frequently according to the domestic political situation.
Zhai noted that China should strengthen its ties with Pacific island countries through economic and trade relations to promote the concept of peace, development and cooperation. “This will undoubtedly increase China’s influence there and can help in striving for recognition of the one-China policy from the international community, which has real significance for China’s peaceful reunification,” he added.
He said he believes Wen’s visit would demonstrate China’s concerns to countries in this region against the backdrop that Western countries pay less attention to these nations except for Australia and New Zealand.
After the opening ceremony for the First Ministerial Meeting of the China-Pacific Island Countries Economic Development and Cooperation Forum, the China-Pacific Island Countries Economic Development and Cooperation Guiding Framework was signed by China, the Cook Islands, the Republic of the Fiji Islands, the Federated States of Micronesia, Niue, the Independent State of Papua New Guinea, the Independent State of Samoa, the Kingdom of Tonga and the Republic of Vanuatu.
Under the Framework, China and Pacific island countries vowed to actively promote cooperation in tourism as the two sides envision great potential in this field. Pacific island countries will be granted “approved destination status” for Chinese citizens.
Wen also announced in Nadi on April 5 that China will provide 3 billion yuan of preferential loans to Pacific island countries in the next three years to promote cooperation. Meanwhile, the Chinese Government will establish a special fund to encourage Chinese enterprises to invest in Pacific island countries.
According to the premier, in order to support Pacific island countries in developing their economy and easing their debt burden, China will grant zero-tariff treatment to the majority of exports to China from the least developed countries in the region that have diplomatic ties with China.
Meanwhile, China will cancel their debts that matured at the end of 2005 and extend by 10 years the payment of debts contracted by other island countries that matured at the end of last year.
Premier Wen said China will provide free anti-malaria medicine to the island countries affected by the disease in the next three years. China will continue to send medical teams to the island countries and conduct annual training courses for health officials, hospital managers and medical researchers of these countries, he added.
“It is a strategic decision, not diplomatic expediency, for China to foster friendship and cooperation with Pacific island countries,” said Wen in his keynote speech at the opening ceremony.