Ambassador Zhang Yuanyuan's Speech at Taranaki Federated Farmers Conference

     New Plymouth, 23 May 2008

     Mr. Bryan Hocken, Provincial President of the Federated Farmers of New Zealand,

     Delegates to Taranaki Federated Farmers Conference,

     Ladies and Gentlemen,

     First of all, I want thank you, President Hocken, for your kind invitation, and for your insistence on getting me here so that I can have a dialogue with so many Kiwi farmers.

     So let me begin by talking about farming. I used to be a farmer myself, or more accurately, a farm worker. I was born a city kid. But almost 40 years ago during China's cultural revolution, I was "sent down" from Beijing to a remote farm in China's Hainan Island, where I worked for three and half years. I planted trees, mostly rubber and eucalyptus, grew rice to feed ourselves, built roads and houses, raised ducks, pigs and cattle. I did all those things before joining the Foreign Service in the year US President Nixon visited China.

     The experience taught many things. First, it let me know where our food came from. That included not just rice or bread but also meat and vegetables. Second, it made me strong, perhaps even muscular, and not so easy to get sick. Third, the experience gave me my lifelong conviction that China would have no future if it could not bring down the percentage of farming population in the country.

     That figure back then was over 80%. Now, it is down to around 60% nationwide. Where have all the farmers gone? Many have since switched to sideline occupations, such as animal and aquatic farming, horticulture, industrial manufacturing, etc. Many are working on construction jobs in large cities. Still some, having sold their farms to property developers amid a massive urbanization, become city dwellers themselves. The country's population, now standing at more than 1.3 billion, are self-sufficient in food. China imports some food, soybean for cooking oil, wheat for special breads, and selected meat and dairy products for more sophisticated consumers. We also export some rice, vegetables and processed food items. Food prices in China, though rising, remain relatively stable thanks to very large grain stocks.

     I think the biggest problem facing the Chinese government is to ensure adequate supply of food to the world's largest population. It is not an enviable job I suppose. Despite the tough family planning policy, China's population is still rising, and that trend will reverse, according to scientists, only after 2040 when China will have 1.5 billion people. What is more, people want a better diet and a more comfortable lifestyle. And how can anyone tell them they cannot have that? That means more resources will be allocated to the improvement of people's living standards. That is exactly what China has done in the past 30 years.

     Thanks to an average annual growth of 9.7% over the past three decades, China has become the world's 4th largest economy, 3rd largest trader and a key engine for world economic growth. Last year, China's contribution to world growth was 17%, surpassing the US for the first time. China's contribution to world trade growth was about the same as the US, though it was four times bigger than China economically. A total of 2.17 trillion US dollars of trade was conducted between China and the rest of the world. In the next few years, China will import each year at least one trillion US dollars of goods. China is not happy with its big and long-standing trade surplus. We are encouraging our trade partners, Western countries in particular, to remove export restriction so as to make trade more balanced. What is more, we are adjusting the mix of our export industries in line with a more eco-friendly and conservation-conscious industrial policy. That is what we call scientific outlook for development.

     By scientific outlook, we give full recognition of the role of the people in development. The people are the ultimate purpose of development, the people must be relied on in achieving development, and the people must be brought to fully enjoy the benefit of development. Also, development is not just an economic term. It should be given great scope to include political, social, cultural and ecological dimensions. Furthermore, development should be pursued in a coordinated way with adequate attention to sustainability and conservation. This new approach, in a way, provides a key to understanding China's future development. China, in fact, is not so much different from others, including your country NZ. We all have to struggle for answers as to how to balance efficiency with justice, market with society, and growth with stability and the environment.

     I certainly don't want to leave you with an impression that we are somehow satisfied with the progress. We are not. China is, and will for a long time to come, a developing country. In per capita terms, China now ranks behind the 100th place in the world. Even after it becomes world's No. 1, it will still rank among the middle-income countries. We need to work still harder to deliver a better life for our people.

     Will China's rapid and seemingly unstoppable development a good thing for the rest of the world? Of course, only time will tell. But as far as we are concerned, China will and can only go for peaceful development. At the 17th Party Congress last October, China's President Hu Jintao explained the doctrine of peaceful development of China. In the nutshell, China wants to develop itself by dedicating to world peace, and to maintain world peace through its own development; China wants to see the benefits of its development shared with the rest of the world and its newfound strengths pooled in tackling the numerous global challenges. Chinese leaders have stated on many occasions, as during President Hu's visit to Japan, that China will never seek hegemony, meaning world domination, and will never pursue territorial expansion. We are living a time in which peace, development and cooperation among countries have become the irresistible trends. When people see China work closely with international community to address important regional hotspots and seek solutions to climate change and a multitude of other global challenges, they should conclude for themselves that China is a force making for a peaceful and stable world, and that China's development is a good thing and should be welcomed with open arms.

     What does all this mean to New Zealand? I think New Zealand has come with an excellent answer: working to promote a friendly and mutually beneficial relationship with China, and most recently, concluding as the first Western country a free trade agreement with China.

     China-NZ FTA was signed on 7 April in the Great Hall of the People with over one hundred business representatives from both countries witnessing. The immediate response from the Corporate China was very positive. Here in NZ, the Parliament's first reading was overwhelmingly in favour. A NZTE roadshow is under way this week to familiarize business communities with the provisions and to prepare them for the benefits. Much has been said about the FTA. I see it as a declaration of our joint commitment to free trade and as a show of courage and self-confidence to face up to a world beset by rising protectionism.

     I will not go into details of the document, because one, I am not very well versed, being kept on the sideline of the negotiation most of the time and, two, people have difference concerns, even among people associated with common interests. But I do want to stress two points:

     First, this agreement is the result of hard bargaining with a lot of give and take. It is a document of compromise, and both sides made concessions.

     Second, China was serious about reaching a FTA with New Zealand. I have been asked many times why China had chosen NZ to discuss the issue of FTA. My answer, one, we have to start somewhere; two, NZ has been extremely positive about it. You are the first Western country to recognize us as a full market economy, the first to conclude our WTO membership negotiations, and the first to launch the FTA talks. Perhaps it is our way to show appreciation of the famous Kiwi generosity.

     Ladies and Gentlemen, I know there are at least two more things you want me to talk about before I retire, the earthquake in Sichuan on May 12, and the Beijing Olympic Games starting on August 8.

     The earthquake measured 8 magnitude that hit western province of Sichuan on May 12 was the biggest and most widespread in the history of the People's Republic. As of this morning, the death toll stands at 51151 with more than 29000 listed as missing. A total of 288431 were injured. Some 20 million people in an area of 100 square kilometres were directly affected, with more than 5 million made homeless immediately and 12 million needing resettlement. China's prime minister arrived at the scene four hours after the first tremor. More than 140 thousand troops supported by over 100 helicopters and equipment, thousands of medical workers, tens of thousands volunteers, many foreign rescue and medical teams, have worked around the clock to save lives, treat the wounded, arrange for the homeless and make sure no epidemic would occur. Survivors buried for 80, 100, 179 and even 216 hours were rescued. At 2:28 pm Monday, exactly one week after the earthquake, China's 1.3 billion stood in silence in the first national mourning to honour their fellow citizens and feel an acute sense of bereavement. It was a touching moment. Here in NZ, for two days, hundreds visited the embassy to sign the condolence book. The government has offered a half million dollars aid through the Red Cross. Some companies donated money and relief material. Chinese communities raised cash and sent it to the disaster areas in China. It reminds me what my Prime Minister told yours that NZ is a good friend and good partner of China. I want to take this opportunity to thank all of them once again for their compassion, generosity and the spirit of solidarity.

     As for the Beijing Olympic Games, 205 national and regional Olympic committees have pledged their participation, which is a historical high. Over 100 heads of state or government and members of royal families, your Governor-General included, have confirmed attendance of the opening ceremony. The Olympics, for all the symbolisms attached, is but a sports meet, and it should be treated that way. China, as the host, will do everything it can to ensure its success. I hope the Beijing Games will go down as a great show of international solidarity, friendship and brotherhood of athletes throughout the world.

     Kiwi's love of sports is legendary. I am impressed with the high level of readiness and devotion of the New Zealand Olympians. I wished them luck and lots of medals. Kiwis are Rugby fans. I don't know how you will see a football match between China and New Zealand at the Olympics? I know your mayor wanted you to cheer the home team. But I will be happy whoever wins it.

     Finally, let me wish your conference a complete success.

     Thank you.