Proposal for a Strategic Partnership Between Romania and China

In Beijing, Prime Minister Victor Ponta, together with Chinese President Xi Jinping and Prime Minister Li Keqiang, tackled the possibility of elevating the relationship between Romania and China at the level of strategic partnership.

The Chinese officials appreciated the proposal, which will undergo an official assessment, as standard diplomatic procedure towards finalization.

The Romanian head of government also stood for easier access for Romanian foodstuffs on the Chinese market.

Other cooperation projects were envisaged in fields such as energy and IT, as Victor Ponta underlined, also mentioning the role played by a special political relation in boosting economic cooperation.

Onboard the plane taking the Romanian delegation from Beijing to Chongqing, to attend an economic forum, Prime Minister Victor Ponta granted an interview to our correspondent Angela Matei, and he spoke about his tour of four countries.

Reporter: Prime Minister, today in Beijing you have been received at the highest level and you are one of the few officials to have enjoyed this privilege. What can Romania’s Government do or what do you intend to do for this special relation to produce effects with regard to economic relations as well?

Victor Ponta: First of all we should be very serious and open. You know that here is a saying which goes “out of sight, out of mind”. In recent years, there have been few meeting opportunities between Romania and China. That is why I wanted so much to do this. It’s been only three months since the new President and Prime Minister took office in Beijing.
It is extremely important that we’ve met in person, recalling the old things that can bring us closer, paying heed to our political, economic and cultural relation.
In another move, particularly during the talks I had with the Prime Minister (because it was the appropriate place to do so), I talked about very concrete projects, which we want to develop in such fields as energy and the IT and we also referred to Romania’s economic interests. The opening of the Chinese market for Romanian foodstuffs will be a huge advantage to our producers.

Reporter: China has made public its decision to make record investments in Europe this year. Have business people signaled problems? Do they request certain conditions that should be met? Do they face any difficulties in Romania, and could we do something for this money to be channeled towards Romania, in as large an amount as possible?

Victor Ponta: First of all, Chinese companies don’t know or don’t understand very well the extremely complicated and lengthy procedures in place at European level, and unfortunately we can’t do anything about it, as we cannnot have a separate opinion.What we can do at EU level instead is to ask, each time, for shorter procedures and less bureaucratic procedures, because it is difficult to understand them, even for us, who live in Europe.
Secondly, when it comes strictly to Romania, we have adopted-and this fact has been appreciated at the highest level- a new system for granting visas to Chinese business people. Practically, things are unfolding very fast and in a very simple way. Actually, we will open a new consulate in Beijing, which will provide better logistics. Most importantly, at political level, we should mention the commitment made by the Government and by myself, and at the level of the attending ministers, the holders of the energy and infrastructure works portfolios, to support all Chinese projects and investments in Romania, within the boundaries set by the European legislation.

Reporter: You brought along with you to Beijing a portfolio of projects. Which of the projects you have discussed stand chances of being implemented in the near future?

Victor Ponta: Certainly, there will be a more significant presence in Romania of the big telecommunications companies - Huawei and ZTE – and we envisage Romania’s actual transformation into a regional European center for the two major companies. Also, we can move significantly forward with investments in the energy field. We already have the Rovinari project, worth one billion dollars, which we are developing. Also, Minister Nita presented the Cernavoda group 34 Project, and the main request of the Romanian side – and I must say I’m happy with the way in which it was received – was the speeding of the verification procedures to open the Chinese market for Romanian foodstuffs, in particular meat and wine.

Reporter: You will take some concrete measures, for these things to move forward. The previous governments too tried to boost relations in this field, but things did not move beyond beautiful words, with very few things actually happening in reality.

Victor Ponta: I’m more practical and more pragmatic as a person. All the projects that stalled in ministers’ drawers for so many years have now started to move, and some of them have even been finalized. Obviously, after these high level meetings, through ambassadors, ministers and special advisors each of the things we discussed will start getting shape, and I will personally monitor the running and implementation of these projects.

Reporter: After the talks you’ve had today, can we expect a similar high-level visit to Bucharest?

Victor Ponta: Definitely. The Chinese President came to Romania in 2004, that is some ten years ago. The Prime Minister has not visited Romania for 20 years, since 1994. We insisted on the idea of having a high-level visit to Romania, just like I visited Beijing, and I’m convinced this is going to happen during my term in office.

Reporter: We must tell our listeners that were are on the plane, hence the noise, and we are heading for the place hosting the China – Central and Eastern Europe forum. What are you going to tell business people there? Why choose Romania and not one of its neighbors?

Victor Ponta: This is going to be an even more complex meeting. These are business people, representatives of local authorities and also Romanian county council presidents and mayors. I will give a presentation in the opening of the forum, and then, in the coming days, each of the members of the delegation will have the opportunity to get involved. I will present a politically stable country, with a legislation that has improved and encourages investment, because it is a fact that China is well regarded in Romania and Chinese companies are welcome here. There have been developments of late – economic growth, financial stability – that ensure the stability and predictability of any Chinese investment in Romania. So, I am convinced that very good projects will be implemented, facilitated no only by the Prime – Minister, but also by local authorities.

Reporter: The idea of Chinese investment in the Romanian transport infrastructure was a topic of debate some years ago.

Victor Ponta: This is a topic of interest, but talks have always been rather superficial. You know that we have actually started the necessary procedures for the public – private partnership regarding the Comarnic – Brasov – Bucharest South Byroad and Pitesti – Craiova sectors. We explained those Chinese companies that showed interest for such projects that they must observe the European rules and that all works must be governed by a transparent and open procedure. If Chinese companies observe these procedures, they are obviously welcome, but they are not used to the European rules. I admit that sometimes these rules are too bureaucratic and the procedures slow, but we cannot make any exception, because otherwise the European Commission would intervene, and this is a risk we cannot take.

Reporter: China is the last leg of a tour that included another three countries. There you talked a lot about projects in the energy field. Which of these projects would be the most important for us?

Victor Ponta: The most advanced one is the one regarding the investment of Kaz Munai Gaz in Rompetrol. Our government has managed to solve a dispute that lasted for many years, and this is besides the money that we cash in for shares. It’s an investment fund worth one billion dollars provided by Kazahstan and this is actually tangible, it will happen in the coming period.

I hope that we didn’t get too late to Azerbaijan, because the Azeri state company SOCAR was interested in Oltchim in 2009, but unfortunately they were chased away, and therefore they bought a factory in Turkey with roughly the same profile as Oltchim, and now they promised us they would be back. They are possibly interested in integrating the production in Turkey with that in Romania, but it is a bit late, and if we had been of sound mind at the time, we surely would not have had the difficulties with Oltchim that we’ve had last year and this year. In Uzbekistan, there are significant funds, and representatives of Romanian companies were there, representing IT and infrastructure, in order to be a part of projects financed by the Uzbek state. In Hong Kong we mainly talked about foodstuffs, since Hong Kong is a special gateway to China, with very little tax or no tax, with great financial power. Hong Kong is now the largest stock market for Romanian wine, allowing trade on the Chinese market, a huge market, where Romania’s production would be easily overlooked, but which for us back home would be a great deal.

Reporter: How would you rate the chances of having a direct flight between Bucharest and Beijing?

Victor Ponta: I would say they are average, because, beyond the evidence, and I would do everything in the government’s power to support the re-introduction of this flight, and here I am talking about economic reasons. TAROM and one of the Chinese companies, to the extent that we would have such a flight, must not lose money. Therefore we would have to have a certain volume of passengers and trade for these relations to be profitable. If there is something that the government could do to support TAROM in this endeavor, we will do it with all our conviction.

Reporter: “You met European leaders, you went on this Asian tour to attract investments. What area are you to visit in the near future?

Victor Ponta: There are other areas with financial potential, economic potential, I am referring primarily to the Gulf area, where I will have to go soon, also on an economic mission.
I believe that Romania lately stayed at home too much, I am talking about Romanian leaders; either that or the world economy is changing. The countries which we previously treated with indifference or superiority have taken great strides, they are adapting. The simple fact that the government of Romania has not been preoccupied with foreign economic relations has wasted us a lot of time. I am trying, I am making every effort to make up for this time, and of course Europe remains our main partner, but I would like us to look at Asia, look at other areas too, because people before us have looked there, and they were not wrong.

Reporter: “These are things that do not get resolved, and don’t develop on day to the next. Should there not be a strategy, a government policy, irrespective of color, to be continued, so that we may reap the results of such discussions, visits?”

Victor Ponta: Your question contains the answer. Of course there should be such a thing. I started this strategy. Now it is clear enough. What expectations, what potential do we have, which are our potential partners? And of course, I hope the government to come after mine will not change this thing, which is in Romania’s best interest.