1. There has been an announcement about an enormous loan to be issued for rehabilitation of roads in Moldova. How is the negotiation process going? When and under which particular conditions the money could be allocated?
With the rapid economic development, China's foreign investment is also growing. In 2009, China's outward FDI net flows reached US$56.53 billion, and the accumulated outward FDI net stock volume stood at US$245.75 billion. The < World Investment Report 2010: Investing in a Low-Carbon Economy> by UNCTAD indicated that, Chinese outward FDI flows ranked 5th in all economies and 1st among developing economies.
In recent years, Moldovan Government expressed that they hope to apply Chinese loans for the rehabilitation of Moldovan infrastructure several times. Chinese Government knew that the rehabilitation of infrastructure was very important to the development of socio-economy and the improvement of people's living standards. So Chinese Government encouraged enterprises to participate in the rehabilitation of Moldovan infrastructure. In view of this, China Overseas Engineering Group Co., Ltd. and SINOHYDRO Co., Ltd. came to Moldova. Since April 2010, SINOHYDRO invited by Moldovan Government has sent several work teams to Moldova for investigation. In November 2010, SINOHYDRO and Ministry of Transport and Road Infrastructure of the Republic of Moldova signed a construction contact of the rehabilitation of two roads valued 6-70 million dollars. Currently, Ministry of Finance of the Republic of Moldova has submitted the application for loans to Chinese Government. Chinese related institutions and bank is working on it. If Chinese bank gives its official approval of the project, the loans can be put in place.
Prepared and dominated by Moldovan Government, this project is a result of long-term efforts of China and Moldova. So we hope it will go into operation as soon as possible.
2. China has provided assistance to Moldova in almost all possible areas, from healthcare to military. Are there any areas where China would never provide assistance in principle?
As you have said, Chinese Government is committed to give humanitarian assistance to Moldova with the full extent of our capability. Since the independence of Moldova, China has provided economic and technical aid, including food, medical equipment, production line, office equipments and anti-disaster spot exchange. Meanwhile, China provided civilian products included office equipments, not military equipments, to Ministry of Defence of the Republic of Moldova. Chinese aid to Moldova is not attached any political conditions and interference in internal affairs. The purpose of Chinese aid is to promote socio-economic development, improve the People's living standard of Moldova, express the friendship of our government and people to Moldovan government and people, and deepen the traditional friendly relationship of China and Moldova.
3. What is the total amount of assistance provided by Chinese Government to Moldova this year? Not less important is the question why do you engage?
The fifth China-Moldova Economic and Trade Cooperation Committee held in Beijing on August 14 2010, during which the economic and technological cooperation agreement about Chinese Government providing aid valued 20 million Yuan RMB to Moldovan Government was signed.
As a big developing country, China is committed to its own development. At the same time, China has provided more than 2100 projects include infrastructure and livelihood projects to 120 countries under the framework of South-South cooperation, carried out various kinds of technical cooperation to help recipient countries improve their management level, provided government scholarship to more than 70,000 students from developing countries, trained 12,000 people from 173 developing countries and regions in more than 150 professions of more than 20 areas, signed the protocol on debt relief with 50 countries for 380 debts. China has carried out almost 200 foreign emergency relief operations, provided emergency relief supplies and financial assistance, sent rescue and medical teams for post-disaster reconstruction. China has sent medical teams to 69 developing countries and regions with a grand total of 21,000 medical staff, and gave treatment to 260 million people of recipient countries. These assistant enhanced the self-development capacity of recipient countries, and deepened friendly relations and cooperation between China with recipient countries.
Chinese government attaches great importance to friendly cooperation with Moldova. Developing friendly cooperation with Moldova is Chinese government's principles and policies, and is a coincidence of common interests and aspirations of our governments and people. As a big developing country, China has its own important and difficult task to develop socio-economy. Meanwhile giving economic aid to Moldovan people with the full extent of our capability is our government's consistent practice.
4. I know there has been a problem with the premises for the Embassy. Has the issue been resolved?
Since the establishment of diplomatic relations between China and Moldova in 1992, the premises for Chinese Embassy have been rented for 19 years. With the continuous development of the relations between China and Moldova, the existing office can not meet the needs of our embassy. We need larger premises, and this issue is getting great support from Moldovan Government and the Ministry of Foreign Affairs and European Integration. We hope this issue could be solved as soon as possible.
5. We have continuously ascending commercial relations. What else could be done in this regard and what are, in your opinion, the key risks for foreign investments in Moldova?
The business contact between Chinese and Moldovan enterprises is inadequate because of the long distance. We should make full use of all platforms to strengthen the communication of our enterprises. China welcomes Moldova to the Canton Fair, High-tech Fair and other exhibitions. We hope Moldova will be more active, targeted to Chinese market for development and promotion activities, and introduce Moldovan investment environment and cooperation projects intended to attract foreign investment. China will also organize enterprises to participate in Moldovan exhibitions to raise the level of commercial exchanges.
In our view, the main factors impact foreign investment in Moldova is as follows:
1) Political stability is good for foreign investment. Change of government should ensure that foreign investment in Moldova is not affected. The consistency of policies is conducive to long-term investment of foreign capital.
2) We hope that the procedure for foreign investment is more convenient, and the foreign capital is more secure.
3) Relaxation of the system of labor permits and visas is attractive to foreign enterprises. We hope Moldova to reduce the requirements for foreign enterprises and cooperation projects to use local employment.