Ma Zhixue, you previously have been posted in Africa. How has that influenced your view of China’s place in the world?
“I was successively Ambassador to Madagascar, Mali and Côte d’Ivoire. My stays there left me with unforgettable memories. Certainly, all three were developing countries. I saw with my own eyes how heavy the task of economic and social development is. The African continent is vast and wields enormous economic potential. China, the largest developing country in the world, has established friendly relations and cooperation with African countries over many years. China maintains that cooperation based on equality and mutual benefit promotes mutual development.
You took office in September 2007. What developments have made the biggest impression on you during your time here?
“Since taking office, many happy events have taken place in relations between China and Luxembourg. The Grand Duke attended the opening ceremony of the Olympic Games in Beijing. The Prime Minister of Luxembourg was in China two times as President of the Eurogroup, and several Luxembourg ministers, including the Deputy Prime Minister and Minister of Foreign Affairs, have visited China. On the Chinese side, our Vice-Premier has made a successful visit to Luxembourg. Culturally, our Embassy has organised exhibitions of Chinese handicraft, calligraphy and paintings in Luxembourg. Students at the University of Luxembourg, as part of an academic exchange programme, studied in China in 2008. This year, a second group of students leaves for China in July, at the invitation of the University of Shandong.
How many Chinese live in Luxembourg?
“According to estimates by the Chinese Community Association, there are approximately 3,000 Chinese nationals living in Luxembourg.
How really well informed are Luxembourgers about China and the Chinese people?
“Luxembourgers have an open mind and they are great travellers. In my day-to-day contacts, I have learned that many Luxembourgers have visited China. Luxembourg’s population is not large, so if you see the number of Luxembourgers who have visited China, it makes up a considerable percentage of the population. I mention this to explain that generally, people in Luxembourg have some knowledge about China.
China is a vast, multicultural country. It has a long history and an old civilisation. Knowing a country like China, that is not easy. Luxembourg is a very small country in the geographical sense. How ever small it is, I cannot say that I already know Luxembourg and its people well. And when I read about this country, I ask myself if something really is well-founded. To inform others, you must be well-informed. This is a working principle for me.I would say that in general, Luxembourgers are understanding and respectful towards the Chinese.
China is such a large country, while Luxembourg is a small nation. Why is this relationship important?
“In terms of area and population, China is a very big country and Luxembourg a very small country. China is a developing country and Luxembourg is a developed country. Luxembourg has strong experience managing its financial platform, its high technology in many areas such as steel and satellite telecommunications, and in international finance. And Luxembourg is a founding member of the European Union. While there are differences, it is those differences that explain the synergies between China and Luxembourg. This is why our two countries attach great importance to deepening their cooperation.
What is your assessment on the economic and trade relations between China and Luxembourg?
“Economic cooperation and trade between the two countries has made significant progress. China has now become the second partner of Luxembourg outside the EU, and Luxembourg is among the most important points of distribution of Chinese products imported into Europe by air.China considers Luxembourg as a friendly partner and equal, with plans to develop its cooperation in traditional areas such as finance and steel, and in new areas such as environmental protection and clean energy.
The World Expo is getting underway in Shanghai. Why is it important for China?
“Firstly, it is the first time in more than 150 years that the Expo is being held in a developing country. The 2010 Expo in Shanghai represents an opportunity: that China is giving for all nations in the world to stand on equal footing. This explains why the World Expo in Shanghai has the highest ever number of participating countries.
Are you satisfied with Luxembourg’s pavilion and participation in the World Expo?
“I have not had the occasion to visit the Luxembourg pavilion. However, I visited when it was still under construction in May 2009. I found it very original and representing Luxembourg perfectly.The presence of Luxembourg at the World Expo is very strong, and permits the Chinese in particular to learn more about Luxembourg and Luxembourgers.
I appreciate the importance that Luxembourg accorded its participation in Expo 2010 Shanghai. Luxembourg was one of the first 10 countries to have completed its pavilion. A quality cultural programme, and rich and varied activities, will be organised during the six months to come. I am convinced that the Shanghai Expo will be a good opportunity for Luxembourg to promote cooperation with the 192 participating countries, including China.
In China’s view, what should be the main priorities today of global institutions such as the G20, the International Monetary Fund, and the World Bank?
“China believes that the reform of the international economic and financial system should focus on strengthening the international financial regulation, promoting reform of financial institutions, regional financial cooperation, and reform of the international monetary system.
China, like many other countries, has recently faced many challenges in the context of global economic crisis. Has China recovered better than other countries?
“Since the end of 2008, the impact of the global financial crisis on China has been significant. It resulted in a sharp decline in external demand, industrial overcapacity, the difficulties of many enterprises, rising unemployment, and a significant slowdown in growth.
In these extremely difficult circumstances, the Chinese government has adopted measures in four major lines: 420 billion euros of investment by the central government to increase government spending; stimulating domestic consumption; strengthening agriculture, especially through the development of agricultural infrastructure; and reforming economic structures.
The result of these measures is evident. In the context of the great global recession, China has been one of the first countries to experience a recovery in the economy, achieving GDP growth of 8.7% and contributing more than 50% of the growth in the global economy, which is an important contribution to the recovery of the global economy.
Is the Chinese currency, the Yuan, undervalued?
“Frankly, I do not think that the RMB is undervalued. Let’s look at the statistics: among 37 countries that exported into China last year, 16 registered an increase of exports. Even for the EU region, where exports fell by 20.3% as a whole, exports to China fell by only 1.53%.Moreover, since the eruption and spread of the global financial crisis, maintaining a relatively stable exchange rate of RMB has made a significant contribution to the global economic recovery.The reform of the RMB exchange rate mechanism began in July 2005. [Since then] the Yuan has been re-valued by 21% against the U.S. dollar, and its real effective exchange rate by 16%. Let me stress that from July 2008 to February 2009, that is to say, during an extremely difficult period for the global economy, the RMB did not depreciate, and its real effective exchange rate rose by 14.5%. In 2009, China’s exports dropped by 16% and imports by only 11%, and a smaller surplus of 102 billion U.S. dollars was recorded.
We support free trade because it not only moves the economy, like flowing water, but also brings happiness and peace to people. We will continue to stick to a system of a floating exchange rate, controlled and based on supply and demand in the market.”
CareerGlorious service
Born in the northern Chinese province of Hebei in 1949, Ma Zhixue entered the diplomatic service in 1975. “Since childhood, I dreamed of being a diplomat. I think the diplomatic profession inspires general esteem in all countries of the world. At the moment when my diplomatic career is coming to an end, I can tell you that this business is glorious. Glorious, because you make a direct service to your country. It is also an interesting and rewarding job; you travel a lot and get to know many countries very well.”His overseas postings have included Cameroon (1978-80), Madagascar (1984-87 and 1998-2001), Djibouti (1987-90), Mali (2001-03) and Côte d’Ivoire (2003-07), before being named Ambassador to Luxembourg (2007). “I held three ambassadorships in Africa before coming to Luxembourg. I was happy to be appointed Ambassador to the Grand Duchy, because it is enriching my diplomatic experience.”
Import/exportTILTED in luxembourg’s favour
According to Statec, imports of goods from China to Luxembourg totalled nearly 45.7 million euros in 2009, down from 72.9 million in 2008 and 53.8 million in 2004, but still up from 34.9 million in 1999. Exports of goods from Luxembourg to China added up to 132.2 million euros in 2009, down from 157.4 million in 2008, but up from 95.2 million in 2004 and 39.1 million in 1999.China’s Ministry of Commerce reported that in 2007 (the latest figures available) foreign direct investment from China into Luxembourg was only 80 million euros, although that made Luxembourg the second largest recipient of Chinese FDI in the EU. Foreign direct investment from Luxembourg into China was 342 million euros, making Luxembourg the second largest source of FDI from the EU.In terms of opportunities to grow bilateral trade and investment, “there is still great potential in the fields of renewable energy, protection of the environment, air transport, and training of financial staff,” says China’s Ambassador to Luxembourg.