Fifty Years of Sino-Norwegian Cooperation

-An Interview with the Norwegian Ambassador to China

By staff reporter QIU JIANGHONG

Ambassador Tor Chr. Hildan at work.

Geographical distance has not hindered friendly relations, ongoing for more than two centuries, between China and Norway. Norway recognized the People's Republic of China on January 7, 1950 and diplomatic relations were established on October 5, 1954. In 1955, the two countries began to exchange ambassadors. Since then their political, economic and cultural cooperation has steadily advanced. The year 2004 marks the 50th anniversary of establishment of Sino-Norwegian diplomatic relations. In honor of the occasion, China Today spoke with Norwegian Ambassador Tor Chr. Hildan on bilateral trade and economic cooperation.

Bilateral trade that grows with China's economy

China Today: Salmon from Norway can be bought at any big supermarket in China. What does this signify in terms of the level of bilateral trade?

Hildan: Sino-Norwegian relations began in 1949, and their trading cooperation has been of great mutual benefit, particularly in recent years. This is largely due to China's increased domestic development momentum and streamlined economy that has let it spread its wings within the global arena, and which is directly attributable to Deng Xiaoping's opening-up policy.

China is a main consumer of the marine products in which Norway abounds. Trade agreements between our two countries mean that fresh Norwegian salmon is air freighted daily from the Scandinavian Peninsula and available throughout China.

China is a big consumer but also a huge producer. Norway is a small country with huge purchasing power. Quality Chinese garments and electronic products at low prices are big sellers on the Norwegian market and have great influence on the Norwegian economy. The president of the Central Bank of Norway has pointed out to me that Chinese exports to Norway influence prices of other commodities, keeping them, and therefore inflation, low.

Trade aggregates between Norway and Asian countries continue to expand, the biggest proportion being in Norway-China trade. China's sustainable economic development has greatly improved its status within this bilateral trade partnership. In 2003, China surpassed Japan to become Norway's biggest Asian trading partner.

Successful Economic Cooperation

Sino-Norwegian Friendship Bell at the Big Bell Temple, Beijing.

China Today: Norway has a long history of investment in China and cooperation with Chinese enterprises. What is the current situation and how do you view our prospects?

Hildan: Norway was one of the first countries to invest in China. For example, Norsk Hydro ASA, a producer of light metal products such as pipes for auto engines and air conditioners, began investing in China in the early 20th century.

Norway's cooperation with Chinese enterprises takes the form of investment. For instance, Norske Skog, a paper producer for newspapers works together with a local enterprise (foreign funded) to produce it in China, rather than Norway, as this is the more economically viable approach.

The most outstandingly successful Norway-China cooperation is in shipbuilding industry. There are fleets of Norwegian ships, and Norway has the world's most competitive shipping industry. China is a shipbuilding country from whom Norway purchases ships and shipping equipment. We provide raw materials and China makes the ships. This is a highly effective cooperative relationship due to huge improvements in China's manufacturing quality. Today the competitiveness of Chinese products is based not only on low prices, but also on its improved standards of manufacture. In March 2004, the Norway-based Stenersen Shipping Company ordered an oil tanker with a loading capacity of 16,400 tons from Shanghai Jiangnan Shipyard (Group) Co., Ltd. This was the sixth order for this type of oil tanker since 2001.

The Norway-China trade relationship gets stronger and stronger as more Norwegian governmental organizations, companies and individuals come to invest in China and establish factories and representative offices. We also welcome Chinese investors and holidaymakers to Norway. This year sees conclusion of the Memorandum of Understanding on Approved Destination Status that will open the tourism market and boost investment between our two countries.

Supporting China's Sustainable Development

Norwegian guests in China promoting their marine produce savor traditional Chinese culture.

China Today: In your opinion, what problems does China face during its continuing development? How will Norway cooperate with China to solve them?

Hildan: China now faces many challenges in its process of sustainable development. Norway will give its full attention to these problems and offer positive support.

Norway was a steadfast supporter of China's WTO accession, since which time we have consolidated financial cooperation. In our view, it will take time for China to operate entirely according to WTO regulations, but they are nonetheless important to its overall development. Many Norwegian industries and organs are concerned about possible overheated economic growth in China, and we hope China can maintain sustainable development.

The environment is also of great concern to Norway and China, in view of China's development relying heavily on its vast natural resources, coal in particular. In order to avoid further damage to the environment and to maintain sustainable development, state environmental protection administrations, universities and research institutes in both countries have been carrying out extensive research that has already produced positive results.

The focus of both our countries is on petroleum and natural gas projects. As the seventh biggest petroleum producer and third largest petroleum exporter, Norway has rich marine oil resources and advanced marine-drilling technology. As China's demand for oil and other energy sources increases, so does Norway's willingness to introduce developed technology into our cooperation.

Norway has been an important partner to China in exploration and construction of hydroelectric power for 20 years. Much of the equipment in use at the Three Gorges Hydropower Station is from Norway. Its energy exploration focus has recently shifted to new renewable energy (NRE), such as solar batteries, small hydropower stations, wind power, tidal energy, bio-energy and fuel cells. Having a century of experience in utilizing and storing hydrogen power behind it, Norway is ready to focus on NRE in its cooperation with China.

Norway has been active in China's environmental protection since the early 1990s. It has conducted eco-projects, such as sewage and salt water treatment and air and water pollution survey projects, in several provinces and cities. The All-China Environment Surveillance Database Norway cooperated with the China State Environmental Protection Administration in establishing the National Environmental Monitor Database, and her participated in afforestation projects aimed at combating desertification. Norway has also offered direct support to China. For example, it donated to China the Triones, a scientific fishery survey ship, and continues to support this project. On the project's 20th anniversary, China established its first scientific arctic research station in Norway.

Activities to Celebrate the 50th Anniversary of Sino-Norwegian Diplomatic Relations

Mr. Jorgen Kosmo, president of the Storting, the Norwegian parliament, will come to Beijing on October 82004, accompanied by a parliamentary delegation and Norway's Foreign Minister, Mr. Jan Petersen, to mark the 50th anniversary of diplomatic relations between Norway and China. On this occasion, in addition to political meetings and cultural events, a series of business seminars will take place in Beijing and Shanghai.

April 2004 marked the first visit to China of Norwegian Minister of Defence Mrs Kristin Krohn Devold. Other high level visits include one by the Minister of Petroleum and Energy and Minister of Fisheries in autumn.

A high level visit from China to Norway took place in June. Events are also being planned in Norway to celebrate this diplomatic anniversary.