Monday 31 March 1997
TRANSCRIPT OF THE HON JOHN HOWARD MP
PRIME MINISTER
BUSINESS LUNCHEON HOSTED BY THE AMBASSADOR
GREAT WALL SHERATON, BEIJING, CHINA
E& EO
State Councillor Song, Ministers, Vice Ministers, other distinguished guests, ladies and
gentlemen. I really do welcome this opportunity today before an audience which brings together, may I
say, a particularly large number of senior members of the Chinese Government, and in
acknowledging that can I thank Lhose people for the complement that thcy gave to the
relationship between Australia and China. Their presencc together with the presence of such
a distinguished and strong delegation of men and women in business in Australia is an ample
demonstration that on both sides the is a determination to build further the close
relationship between Australia and China.
I congratulate the China-Australia Chamber of Commerce on the first anniversary of its
registration and the successful amalgamation of the three Australian business groups in
China. Let me say at the outset of this speech that I attach very great importance to my visit to China.
My goverment is very firmly committed to a strong and mutually productive relationship
with China.
We seek a relationship which is both strong and diverse and we seek a relationship which is
based on mutual benefit and mutual respect.
This commitment, may I say, is a politically bipartisan one in Australia. It has been an
important element of continuity a constant if I can put it that way in Australia's foreign
policy. This year we mark the twenty-fifth anniversary of the establishment of diplomatic
relations with the modem China. A Labor government under Gough Whitlam was in office at
the time. A Coalition government under Malcolm Fraser subsequently very actively
developed the relationship between Australia and China. Malcolm Fraser's work was
continued by his Labor Party successors.
This visit to China is part of a pattern of visits I have undertaken since becoming Prime
Minister that takes me to Australia's principle partners and friends in the region. I have
already been to Indonesia and Japan and I am particularly happy within a year or so of taking
office to be here in Beijing.
My government's foreign policy including its policy towards China is based on a clearheaded
and independent assessment of Australia's interests in the Asia-Pacific region.
T am confident that after my discussions with President Jiang Zemin in Manila at the time of
the APEC Leaders Meeting that he shares my desire that our relationship should be both
positive and broadly based.
There is little doubt that China is one of the most important countries in our region.
It's hard to think of any major aspect of the Asia-Pacific region which will not be influenced
in some way by China's development during the next two or three decades. It's no
exaggeration to say that what happens in China over that period will be one of the major
influences on the Asia-Pacific region in the 21st century.
The past twenty years have seen a transformation within China. Under Deng Xiaoping's
leadership China threw open its doors to the outside world. It started the programme of
reforms which has seen China begin to fulfil its enormous potential. So Australia like all of
China's partners was pleased to hear the Chinese leadership's recent reatfirmation of its
commitment to that reform programme begun by Deng Xiaoping.
Over the past two or three days in both Shanghai and Beijing I have been able to witness at
first hand China's spectacular growth, spectacular industrial transformation. China's
economic achievements are bringing obvious benefits to China and to her people.
China's growth is beneficial also for Australia and for the region. It creates great economic
opportunitics for China, lor Australia and for our region. Its constructive handling can help
build even greater stability in our region.
I would like to make a few remarks about what this growth means for regional and global
trade. In particular, I would like to say what it means for Australia.. and the part that I would
like to see Australia play in it.
China is the seventh-largest economy in the world and is set to become at least the sixth
largest by the year 2000. Trade has played a vital part in this achievement. Trade and
international services comprise 45 per cent of China's GDP.
In a remarkably short period China has gone from a relatively closed economy to become the
world's tenth largest trading nation. From July with Hong Kong. China wifl be the sixth
largest trading nation in the world.
China's trade combined with Hong Kong's has grown by 15 per cent a year since the late
1970s twice the world's average. China's trading relationships will soon be amongst the
world's most important. For example, soon after the year 2000, China's trade with Japan wil
overtake US-Japan trade which has been a pillar of Asia-P acific trade and the international
economy.
Both China and its trading partners therefore have the very greatest common iterest in
regional and global trading arrangements that are liberal and predictable.
Like the rest of us, China will need continuing access to other markets in ordcr to prosper.
We all need to ensure that markets continue to open up further.
For its part, China is iuaking some meaningful rcductions in its overall tariff rates in the
APEC context. That is very welcome. It will improve market access for China's trading
partners as well as increasing domestic competitiveness, with benefits for China's economic
growth and the living standards of her people. China's trading partners have a strong interest
in the maintenance of open and consistent trade policy and rules within China.
All that is why China will benefit from being aLm ember of the World Trade Organisation; and
why Ausfralia wants to see China join on commercially acceptable terms. The stakes for
China and for the global trading system warant a serious effrt to resolve China's accession
as soon as possible.
This would I believe usefulfly iremovc some of the pressures for protectionism in western
especially Western Europen economies which fear the level of penetration by Chinese
products.
Likewise, China has every reason to take a lead in trade libcralisation within APEC. Steady
progress towards meeting APEC's trade and investment libcralisation goals is our best hope
of ensuring that growth in the Asia-Pacific and China reaches its full potential.
China will continue to need foreign investment, imports, technology and services to
overcome constraints on growth. Much of this will come from among the APEC economies,
rcflccting and in turn further strengthening the very high dcgree of integration amongst
those economies.
Reflecting the diversity of the region, APEC brings together a most extraordiniary range of
economies in terms of size, economic structure and stage of development. It brings togethcr
a most diverse group of societies and cultures. Each member not least Australia has
something unique and valuable to offer to the association and to the region, and each gains
greatly by it.
The value of APEC thereforc goes well beyond the economic. I am convinced that one of
APEC's greatest contributions is that it focuses our attention on the substantial interests Asia
Pacific cconomies have in common.
Australia's relationship with China has long been an important element of this regional
framework. Long before the establishment of diplomatic relations, China was Australia's fifth largest
trading partner and that was in the 1960s as it is today. Australia was a reliable supplier of
wheat throughout the 1960s, during sometimes difficult periods for China-
That continuity underscores the national interests that have driven both countries in
developing our bilateral relationship.
China's economy has grown at an average of 10 per cent a year for the last 15 years. With
good economic management there is no reason why China should not continue to grow at a
similar rate for the foreseeable future. The recent successful management of a soft economic
landing shows that we have good reason to be confident about that. The demand for inputs to
the Chinese economy for raw materials, capital, infrastructure, technology and energy will
therefore be immense.
It is vital for Australia to share in that growth. Australia's trade with China grew twenty five
percent between 1995 and 1996. Between 1988 and 1995, it grew twice as fast as Australia's
trade with the rest of the worid. Our investment has grown over four times in as many years.
Australia is one of the top destinations for China's foreign investment.
I will propose to Chinese leaders during my visit that wc take the opportunity of the twentyfifth
anniversary of our relationship to look crcatively at the strategic partnership that I
believe our economics constitute. Establishing a partnership in growth will bring great
benefits to both our peoples.
As I have mentioned I have brought with me the strongest business group that has ever
accompanied an Australian prime minister abroad. These business leaders are from some of
Australia's longest standing and most reputable companies. They reprcsent a great range of
sectors in which Australia has particular strengths.
This joint approach between Australian business and the Australian Government is a
demonstration of the commitment of both to work together. We are both rcady for a serious
discussion with our Chinese counterparts about the concrete stcps which we might take to
build a new era in the economic relationship between our two countries.
Australia has a track record as a reliable supplier of commodities that are important to
China's economic growth: including iron ore, wool and wheat. Australia is also well placed
to provide China with steaming coal, and with LNG for power generation and domestic
consumption. We offer the technological know-how to make the most productive and
environmentally sound use of our commodities.
China has taken up equity in some mining and resource processing projects. Scope exists for
China to increase dramatically its investment in Austrdia in these areas. I want to emphasisc
that that Chinese investment is most welcome.
Both the Chinese and Australian economies are going through periods of rapid change
resulting from the forces of globalisation. Financial and business services have become more
important to maintaining our competitiveness and our productivity.
I have with mc here today leaders in Australian banking, insurance, accounting and legal
services. Tomorrow I will open a seminar by the Australian Stock Exchange. Australia is
looking for listings by quality Chinese companies to raise capital and encouraging them to
consider fuxther investment opportunities in Australia.
Our economic complementarity is also reflected in the joint venture sigings which we are
marking at this lunch:
the issuing of a busineas liccuea, for example, to the joint venture between Australia
China Holdings and the China International Science Centre to apply Australian
technology and expertise to dealing with water pollution and waste water
management; and
an a~ e ement betwecn the Australian industry Development Corporation through the
China Water Company for their second venture and that is a water plant in Shnoxing.
Australia is already an important supplier of fresh and processed food to China. My
Government's Supermarket to Asia initiative offers the prospect of a large increase in
Australian food exports to China
I am confident, ladies and gentlemen, that our economic relationship will become ever more
important to both countries. This has been the pattern with other regional countries, such as
Japan and Korea, which have followed a similar fast growth path and in whose economic
development Australia has played key roles.
I have naturally spoken today largely about our economic links. The development of our
political co-opcration though is no less important. When I met President Jiang Zenm in
Manila, he made a point, a valuable point, about the value of prsonal face-to-face dialoguc.
I want to build a much closer level of communication between the leadership levels of our
two governments and our two nations. I look forward to the large number of high level visits
planned for the period ahead.
Australia and China have co-operated closely on a whole range of issues in the region,
including APEC and the ASEAN Regional Forumn. As China's influence grows, dialogue and
mutual understanding will become even more important.
Australia and China, my friends, have a long tradition of people-to-people links. Australians
in southern China earlier this century were astounded to find Australian blue gums and wattle
trees in full bloom more than 10,000 miles from home. No-one knows for sure when they
were first planted or who planted them perhaps Australian missionaries in the last century;
or perhaps Chinese miners returning from the Australian gold fields.
Today the contacts between us are growing fast in intensity and varicty.
Australia has a very large community of people of Chinese descent of which it is very proud.
The Chinese community has made a tremendous contribution to Australia and such links have
created a reservoir of goodwill in the relationship.
For example, doctors from Parkes, a regional city in c ntl westemrn New South Wales, at the
moment, are co-operating with the Beijing Hospital in work to understand the causes and help
7
alleviate the effixts of Parkinson's disease. A group of Sydney doctors is actively engaged
with a Beijing hospital in heart surgery. This year the Fred Hollows Foundation plans to
begin helping train Chinese eye doctors in techniques to restore the sight of people suffering
cataract blindness.
So, ladies and gentlemen the links are very deep. They are very diverse. They go beyond the
cconomic. They include the political and as always they include the human.
I am here today as a representative of the Auistralian Government and the Australian people to
tell you that we want a close relationship building on the strengths of the past, recognising
inevitably that there will be differences but knowing that if we focus on the goals that we
have in common. if we recognise that we complement each other in so many ways then wc
can have a truely effective partnership in growth over the next twenty five years and beyond.
Thank you.
t o