China today
China is the world’s fourth largest economy. Decisive factors in its growth have been its almost unlimited access to cheap labour, its economic reforms and international developments in the fields of technology, trade and investment. If annual growth continues at between 5% and 10%, the Chinese economy may be the world’s second largest in a few years.
China’s economic growth has enabled it to achieve the most extensive poverty reduction the world has ever seen. Nevertheless, China is the world’s largest developing country, with a population of 1.3 billion, and its gross domestic product (GDP) per capita of approximately USD 2035 is well below the world average. In comparison, Norway’s GDP per capita is nearly 35 times higher. Nearly 200 million Chinese people live in extreme poverty, i.e. on less than one dollar a day.
The country’s own development is given top priority in China’s policies. China’s relations with the international community are guided by its need for domestic social stability and regional and international political stability to ensure the country’s development. Meanwhile the gap between rich and poor within its borders is increasing as a result of a weak distribution policy. Corruption, the threat of social unrest and safeguarding basic human rights are some of the challenges facing Chinese society that give cause for concern.
China’s economic growth has led to increasing energy consumption. Energy supply security has thus become a key issue, including in China’s foreign and security policy. The country is the world’s second largest energy consumer and a net importer of oil. China is also the world’s third largest energy producer, and most of its consumption is covered by domestic production, which is mainly coal-based. China’s leadership acknowledges that the rapid economic development has caused serious environmental degradation that must be reversed, and that the growing demand for energy must be met by increasing energy efficiency and developing renewable energy sources. It also recognises that the country has a global responsibility with regard to the environment and climate change.
China’s integration into international economic, political and cultural relations is a vivid illustration of today’s globalised world. How China stakes out its further development is a question of great importance, including for Norway. Another important question is how China is using its increasing political weight and international influence, particularly as a permanent member of the UN Security Council. There is also the question as to how China will meet its commitments in the WTO. China’s growing geopolitical role and importance will have consequences for the security policy situation at both regional and global level. China’s relations with the US and its close allies in the region will also change. Given its investments and economic interests in other countries, and the increasingly active role it is playing in the global arena, it may be difficult for China to maintain its policy of non-intervention in conflicts in other countries.
Aims and challenges for Norway
Norway’s foreign policy is designed to safeguard Norwegian interests and values in a world that is undergoing rapid change. The Government’s aim is that Norway should play a leading role in the fight against poverty, the promotion of human rights, international environmental efforts, efforts to build a better and more equitable world order and efforts to prevent and resolve conflicts. These priorities are also relevant to China’s development.
The Government will actively seek to exploit the opportunities that are arising from China’s growing interest in cooperation with Norway in areas that are important for China’s development. This applies particularly to Norway’s social welfare policy, our management expertise in areas such as energy and the environment, and our research and education expertise. It also applies to goods and services in sectors where Norway is in the forefront, such as environmental and energy technology and the maritime and marine sector.
In its policy towards China, the Government intends to:
· seek to promote Norwegian business interests, Norwegian expertise and Norwegian values;
· seek to integrate environmental and sustainable development concerns into all Norwegian efforts vis-à-vis China; and
· encourage China to play a more active role in a world community that accords a fundamental role to the UN, and is based on respect for human rights, solidarity, equitable distribution and sustainable development.
China is increasingly making itself felt in almost all foreign policy areas, which makes it necessary for us to view different policy areas in connection with each other. The Government will therefore seek to ensure greater focus, coordination and synergy in Norway’s policies. This applies to exchanges of visits with China, the conclusion of new agreements, the follow-up of existing agreements, project cooperation, the establishment of new Norwegian-Chinese “meeting places”, and public efforts to enhance knowledge about China in Norway and to promote Norway in China.
The bilateral cooperation between Norway and China is well developed and involves broader contacts and increased activity in almost all areas and at all levels. China shows considerable interest in contact and cooperation with Norway. Much of the established cooperation is taking place without the authorities actively paving the way, which is positive.
Further development of the bilateral ties will be challenging, given that many actors are vying to cooperate with China and due to the size of the country, its distance from Norway and our limited capacity and resources. It will require a more closely coordinated public diplomacy effort, including active use of the media as a channel for information. It will also require awareness of the authorities’ role, and of the areas and ways in which the authorities and the tools at their disposal can bring added value. The cooperation between our countries in the fields of culture, education and research will be important means for increasing the interface between Norwegian and Chinese society and strengthening bilateral cooperation in the thematic priority areas. Work is under way on a bilateral agreement on research and technology at central government level. Norway wishes to further develop the cooperation between cultural institutions in Norway and China in order to enhance mutual cultural understanding and opportunities for cultural expression.
The Ministry of Foreign Affairs will have a particular responsibility for coordinating and following up our efforts vis-à-vis China, which will be undertaken in cooperation with the other ministries and directorates and other parts of the Norwegian public administration.
Priority areas for cooperation
Expanded economic relations with emphasis on increased market access for Norwegian goods and services
China offers a growing domestic market with increasing purchasing power, efficient and cheap production and research capacity, and a growing interest in and opportunities for tourism and investment abroad. China is Norway’s most important trading partner in Asia, and our fifth largest supplier of traditional goods. The Government will, in cooperation with the business sector, seek to ensure the best possible framework conditions and the greatest possible predictability for the Norwegian business sector, for example by concluding a trade agreement with China and working on problems related to intellectual property rights. The Government will also pave the way for increased Chinese tourism to Norway and promote investment between the two countries. It will assist Norwegian firms and conduct activities in China aimed at promoting Norwegian business.
China is the world’s largest recipient of foreign direct investment, the world’s major manufacturer of labour-intensive industrial products and one of the world’s largest exporters. At the same time, the Chinese business sector is investing heavily in other countries, particularly in other developing countries. The labour standards applied in China will thus influence global labour standards and distribution of labour. The Government will therefore, in its contact and cooperation with China, place increasing emphasis on employees’ rights and corporate social responsibility.
Development that is sustainable at the local, regional and global level
China’s formidable environmental challenges are linked to the country’s continued strong economic growth, low resource efficiency, insufficient integration of environmental considerations, uneven distribution of resources and high population pressure. Whether or not China is able to make the transition to more sustainable and better balanced economic development will have a major impact on the environment and climate at both regional and global level. China also plays an important role in multilateral forums and negotiations in this area. In Norway’s view, rich countries should help to finance emission reductions in developing countries, and this also applies to China. China is interested in Norway’s assistance in building up its institutional technical capacity in the environmental area and promoting energy efficiency and the use of hydroelectric power and other renewable energy sources. It is in Norway’s own interests to provide such assistance.
The Government will intensify development cooperation with China on the environment, energy and climate change in accordance with the Norwegian Action Plan for Environment in Development Cooperation. Norway will cooperate at both the bilateral and the multilateral level with a view to helping China to fulfil its international environmental obligations. We will assist Chinese institutions in building up their technical capacity and expertise in the environmental field and the environmental knowledge in the civil sector. The focus will be on pollution reduction, conservation of biological diversity and the sustainable use of natural resources.
The Government will seek to establish appropriate consultation mechanisms at political level on issues related to the environment, climate change and energy, and will conclude a framework agreement with China on cooperation on climate change. The transfer of expertise and technology that can help to reduce pollution in China will be a key focus of our cooperation with the country in these areas. Norway will consider the possibility of investing in Clean Development Mechanism projects in China. By utilising Norway’s high-technology expertise and its position as a supplier of oil and gas, the Government wishes to promote cooperation between Norwegian and Chinese companies and institutions in the areas of petroleum and offshore technology, environmental technology, services and expertise.
Democracy-building and human rights
For Asia and the rest of the world, it is essential that China succeeds in its socio-political reform process. China’s development will depend primarily on the course chosen by the country itself. In the Government’s view, it is important that the Chinese authorities provide a suitable framework for sustainable and equitable economic and social development that leads to greater democracy, guarantees basic human rights and protects human dignity in accordance with internationally recognised economic, social and cultural rights.
Norway wishes to contribute to stability and development in China, for example by cooperating on the development of good governance and respect for internationally recognised human rights and standards. Norway’s human rights dialogue with China will continue to be an important arena for our bilateral cooperation. The Government wishes to continue this cooperation, with particular emphasis on the development of the rule of law, freedom of organisation and association, freedom of expression, women’s rights, the rights of prisoners and detainees, minority rights, freedom of religion and efforts to abolish the death penalty. The Government also wishes to further develop and supplement this cooperation by intensifying research on issues related to good governance.
More equitable distribution of social goods and resources
One of the major tasks facing China is the equitable distribution of social goods. Norway’s expertise in combining a market economy with a strong social welfare policy, the tripartite cooperation in working life, its social and geographical distribution policy, good public welfare schemes, gender equality and broad popular participation in civil society – i.e. what is known as the Nordic model – is of interest to China.
It is in Norway’s interest that China succeeds in implementing a more equitable distribution of resources and balancing growth with protection of the environment and decent working conditions. The Government will seek to promote closer cooperation and dialogue between our two countries on a well-functioning public sector and sustainable management of economic and human resources.
Closer cooperation on international issues
China has a permanent seat on the UN Security Council and is a member of most multilateral institutions. The country is thus playing an increasingly prominent role in setting the international political agenda. Like Norway, China attaches great importance to the UN and other multilateral forums. Close contact with China is vital for resolving most global issues, including regional and multilateral environmental, health and security policy issues.
Norway is one of the largest contributors to several of the UN specialised agencies and has long experience of multilateral efforts and peace and reconciliation processes. Thus, the Government wishes to strengthen its contact with China in international organisations and to intensify cooperation on international issues, such as the country’s new regional and global role, security policy issues such as conflict prevention, international human rights, peacekeeping and disarmament and non-proliferation, as well as on global environmental and climate change challenges and trade and development issues
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