Ambassador: China to expand nuclear power capacity 

Chinese EU Ambassador Zhe Song heads his country's mission to the European Union in Brussels. 

To read a shortened version of this interview, please click here.

After some difficulties at the end of 2008, when an EU-China summit was postponed, are relations now back on track? 

You may have noticed that since the beginning of this year, high-level contacts between China and the EU have been frequent, and our cooperation in all fields has produced positive achievements. At the beginning of this year, Chinese Premier Wen Jiabao visited the EU headquarters. In April, Vice-Chairwoman of the National People's Congress of China Uyunqimg visited the European Parliament by invitation. And then in early May, the Second High-level Economic and Trade Dialogue was held in Brussels. On 20 May, the 11th China-EU Summit was successfully held in Prague. 

Meanwhile, ministerial-level contacts have been equally active. There have been many meetings between high-ranking officials in charge of commerce, trade, science and technology, education, culture, customs, etc. Through these exchanges and dialogues in the first half of the year – on human rights, on non-proliferation – China and the EU further strengthened mutual trust and expanded and deepened our cooperation. 

Here, I'd like to mention in particular the Joint Press Communiqué of the 11th China-EU summit, which reiterated the firm belief of both China and the EU in pushing forward our comprehensive and strategic partnership. This document charted the direction for the future development of our relationship. It marks that China-EU relations are put on the normal track of all-round development. 

How does China view the EU's place in the new world order? 

At present, the international situation is undergoing profound change. The global pattern and the structure of inter-state relations are facing substantial readjustments. China views the EU as a key player on the world stage, which is continuing to develop. We have also noticed difficulties and challenges for the EU construction, including the Lisbon Treaty, and social and economic difficulties. We know there are some different views and even quite pessimistic views about the future status and role of the EU – some people even say that the EU is declining, but we don't agree with that. 

As the comprehensive and strategic partner of the EU, China believes that the EU has the ability and wisdom to overcome difficulties and continue to move forward its integration process and play a stronger role in the international arena. No global issue would be resolved smoothly without cooperation between China and the EU. This is my firm belief and something I always stress when working with European friends. 

At the May summit in Prague, agreements were signed on SMEs. What will this deal mean for companies in Europe and China? 

During the 11th China-EU Summit, the two sides signed an agreement entitled 'China-EU SMEs Cooperation Point of Consensus'. This cooperation agreement aims to further strengthen and expand SME cooperation between China and Europe. To this end, the agreement particularly emphasised the need to encourage and strengthen SME policy dialogue and put forward specific cooperation proposals. 

For instance, China is willing to provide necessary support for the EU to set up a SME centre in China. The EU side encourages European SMEs to participate in the China International Small and Medium Enterprises Fair that is held once every year, and other activities. The SMEs are one of the main backbones of China and the EU's economic and social development. SMEs play an indispensable role in driving economic growth, making private investment, creating jobs and promoting technological innovation. SMEs in China and Europe are highly complementary on capital, technology and management. China-EU SME cooperation has very promising prospects. 

On the other hand, the majority of SMEs between China and Europe are not very familiar with each other's market environment or policy environment. This is a main hindrance to deeper cooperation, which requires the government to build platforms for exchanges and contacts. The signing of the agreement will promote the expansion of SME cooperation on technology transfer, market sharing, processing trade, human resources and many other fields. 

On climate change, what measures is China prepared to take to contribute to the international climate efforts? 

I think first of all what China has done is more than preparedness. China has already made a concrete contribution to the international efforts to tackle climate change. We attach great importance to climate change and have adopted a responsible attitude on this issue. Resource conservation and environmental protection are basic state policies. It is our national strategy to achieve sustainable development, and we have made positive efforts to address climate change. 

Can you give some examples? 

First, we work hard to improve energy efficiency. We strive to meet the target of lowering energy intensity by 20% in 2010 compared with 2005. Difficulties do exist in the implementation, but we are confident this target will be reached. 

Secondly, we vigorously develop renewable energy. Now wind power has reached 100 million kilowatts and hydro-power 163 million kilowatts. China is the biggest user of solar panels in the world. Both nuclear energy and methane consumption in the countryside have developed substantially. 

Thirdly, we have adjusted energy structure. We have altogether phased out small power-generating units of more than 40 million kilowatts and backward steel production capacity of more than 60 million kilowatts. 

Fourthly, we are strengthening energy conservation in key industries. By the end of last year, China had invested 30 billion US dollars to improve the energy-saving potential of key industries. 

Despite the global financial crisis, the Chinese Government has unwavering determination to actively tackle climate change. We will never relax our efforts. China will continue to play an active and constructive role, work together with the international community and make unremitting efforts to address climate change. 

In the European recovery plan and the US stimulus package, there is considerable focus on green industries. Is this the case for China's stimulus package? 

Yes it is. We have used a lot of the money from the stimulus package to deal with climate change and the green economy. 

What are the Chinese expectations of emissions limits on industrialised countries in the new post-Kyoto treaty? China has stated that these should be 40% below 1990 levels, while the EU is offering 30% maximum and the US is currently negotiating along the lines of 17% below 2005 figures. Can a deal be reached given these differences? 

From the professional and legal point of view, post-Kyoto is not a precise or accurate term in the context of international negotiations on climate change. The Kyoto Protocol remains valid for long time or sine die, which is not terminated by the expiry of its first commitment period. At present, the Parties are holding negotiations to implement the Bali Roadmap and to enable the comprehensive, effective and sustained implementation of the UNFCCC convention and the Kyoto Protocol. 

China's position is that based on the historical responsibility, the principle of fairness and considering the stages of development, the developed countries as a whole should reduce their greenhouse gas emissions by at least 40% below their 1990 level by 2020, and that they should take corresponding policies, measures and actions. This position of China is very clear. We hope that the developed countries will implement high standards and strict requirements upon themselves, be courageous [enough] to shoulder responsibility, demonstrate genuine political will and take concrete actions, and according to the mandate of the Bali Roadmap, set emission reduction targets for developed countries for the second commitment period, so as to contribute to the success of Copenhagen Conference. 

So it remains the Chinese position that developing countries should not be subject to such strict rules on climate change? 

Yes, for historical reasons and because per capita emissions are different. 

Do you think the developed and developing nations will come to an agreement on the required funding in time to conclude an agreement in Copenhagen? What funding mechanisms would China like to see written into the treaty? 

To provide funding support to developing countries is the obligation for developed countries under the UNFCCC Convention. Governments of developed countries should play a leading role and should not shirk their responsibility. Whether or not developed countries can deliver on their commitments in Copenhagen is crucial to the success of the meeting. 

On institutional arrangements, in China's view, in order to effectively operate the financial mechanism under the Convention, it is necessary to establish an Adaptation Fund, a Mitigation fund, a Multilateral Technology Acquisition Fund and a Capacity Building Fund. The governance of these Funds should be under the authority and guidance of the COP [United Nations Climate Change Conference, Copenhagen] with equitable and balanced representation of all parties in a transparent and efficient manner. 

The funds should be managed with easy accessibility and low administrative cost. On sources of funding, it is the commitment on the part of the governments of the developed country Parties to provide new, additional, adequate and predictable financial resources. The developed country Parties shall make assessed contributions with a certain percentage of their annual GDP, e.g. 0.5-1%, to the above-mentioned funds. Financial resources from the private sector and the carbon market could be complementary to those provided by the developed country Parties. 

Do you believe that attitudes to climate change might be changing in China as the country is now reportedly working on its first national climate plan? What are your expectations for the form that this strategy will take? 

The position of the Chinese Government on climate change is consistent. China is fully aware of both the seriousness and urgency of the problem. Being highly responsible for long-term development of the human race, we unswervingly embark on the road of sustainable development. China released in 2007 the National Programme to Tackle Climate Change. It set down the target of reducing energy intensity by 20% in 2010 based on 2005. We are working hard to meet this target. 

The Chinese government has taken, and will continue to take policies, measures and actions to actively respond to climate change. The Chinese Government attaches great importance to international cooperation to tackling climate change. We have put forward five proposals on the international efforts to address climate change. 

First, we should adhere to the UNFCCC and the Kyoto Protocol as the legal basis. Secondly, we should address climate change within the framework of sustainable development. 

Thirdly, we should uphold the principle of 'common but differentiated responsibilities'. Fourthly, we should adhere to the UN Millennium Development Goals. Fifthly, we should rely on technological advances for tackling climate change. 

What kind of clean technology cooperation opportunities do you see between China and the EU and what form could these take?

Well, we've had a lot of cooperation to date and this has gone very well. In 2005, China and the EU published the Joint Declaration on Climate Change and established a bilateral partnership on climate change. 

Within this framework, in 2007, the two sides launched a three-year China-EU Clean Development Mechanism Facilitation Project. This project is so far the largest cooperation project with EU funding to China in the field of CDM. It includes the application of 'near-zero emissions' coal technology, the advocation of technologies for clean energy and energy efficiency, and the promotion of energy conservation and renewable energy development. The global financial crisis presents rare opportunities for the development of clean development mechanisms and biomass energy. 

The Chinese Government hopes to strengthen cooperation with the EU on technological exchanges and cooperation in these fields. The two sides should work together to remove the obstacles to technology development, application and transfer and reduce technology cost, so as to facilitate wider application of these technologies. 

What part does nuclear energy play in China's energy strategy? 

The Chinese Government has established an energy supply strategy which is coal-based and diversified. In this strategy, nuclear power occupies an important position. In the future, we will actively promote the construction of nuclear power capacity and gradually increase its share in the total supply of primary energy. Nuclear power will become a key component of the national energy strategy. 

China's policy on nuclear power has evolved from "moderate development" to "active development", then to "vigorous development". In the 21st century, China will be one of the world's fastest-growing nuclear energy producers with the biggest installed capacity. 

In China's National Nuclear Energy Development Plan (2005-2020), it is stated that, in order to meet the demand of active nuclear development, China's installed capacity of nuclear power is expected to reach 40 million kilowatts in 2020, and its share in total power generation capacity will grow to 4% from less than 2% currently. 

Has the global economic crisis increased the risk of social unrest in China and what measures are being taken to address this? 

Of course the financial crisis has caused problems for the Chinese government, just as for others. The international crisis and worldwide economic downturn brings difficulties to China's economic development and challenges to reform and opening-up. 

The Chinese Government, after assessing the situation, puts forward policy objectives as maintaining growth, maintaining people's livelihoods and maintaining stability. To maintain social stability, we need to pay special attention to the relationship among the three objectives. 

First, a stable and growing economy is the precondition and foundation of social stability. Only by ensuring stable and rapid economic development can China be able to create more jobs, get more people to work, create more social wealth to improve people's living conditions, and enhance the ability to withstand shocks. 

So, to this end, the Chinese government has introduced a series of major policy initiatives, including the RMB four trillion yuan investment plan. With the gradual implementation of these measures, China's economy has already bottomed out. The Purchasing Managers Index (PMI) remains above 50% for four months. 

Secondly, maintaining people's livelihoods is the starting point for maintaining social stability. In the wake of the financial crisis, the Chinese Government has called for stronger measures to improve lives of the people. It has taken a series of specific measures for this purpose, which are closely linked to the economic stimulus plan and focused on long-term development. These measures include: increasing the income of farmers, improving benefits for primary and secondary school teachers, giving more assistance to jobless families and people with employment difficulties, strengthen public services to the migrant workers, provide more employment guidance and services to college graduates, advance medical and healthcare system reform to reduce the medical burden of the residents, raise the basic pension benchmark for retirees and subsistence allowances for urban and rural residents. 

Thirdly, solving outstanding social contradictions is the key to social stability. The central government has ordered government officials at all levels to intensify efforts and resolve problems connected to people's interests. The aim is to bring the benefit of reform and opening up to all people in a more equitable and balanced manner for the purpose of common prosperity. 

Is Chinese society becoming more equitable or is there a perception that the gap is growing between the richest and poorest? 

To be honest, at the moment the disparity is large but it's an issue we must pay great attention to and solve. Otherwise, society will be unstable. We are doing everything we can to increase the income of farmers by giving better prices, better organisation of production. 

There has been a lot of media coverage of the proposed 'Green Dam' Internet filtering software. What is your view of this controversy and of media coverage of this issue? 

There is great misunderstanding of this software outside China. The main purpose of this software is to protect young people from pornography and unhealthy information. So competent authorities have said that for this software, whether it is freely downloaded online or pre-installed in the computer, the user can make their own choice whether to install or uninstall – to run or close – all the functions of the software. 

This software does not have the function to collect user information or monitor online activities. Pre-installation adopts government procurement methods in line with relevant legal procedures. It does not affect trade or cause technical problems. Like other countries here in Europe, the Chinese Government administers the Internet according to the law to prevent harmful information from spreading online and promotes the healthy and orderly development of the Internet. 

What about terrorist information? 

It's mostly aimed at cutting off pornography, especially for students in primary and middle school. It has nothing to do with preventing freedom of speech. Parents can decide whether to apply it to their children's computers. 

You mentioned support for university graduates. What can be done to create enough high-level jobs for all the students emerging from higher education? 

At the moment the problem is that graduates want to have jobs in big cities in coastal areas which are relatively developed. China is not evenly developed – along the Eastern coastline it is very developed, but the middle and the western parts are underdeveloped. We need experts, university students, technicians and others in these areas. So now we are encouraging graduates to go and find their career in the eastern and western parts of China.