Speech by H.E. Mr. Sun Guangxiang, Vice-Minister of the Ministry of Foreign Trade and

Economic Cooperation and the Head of the Chinese Delegation

At the Third United Nations Conference on the Least Developed Countries

(Brussels, May 15, 2001)

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(Translation)

Mr. Chairman,
Respected Leaders and Ministers,
Ladies and Gentlemen,

At the outset, please allow me, on behalf of the Chinese Delegation, to extend warmest congratulation on the successful convention of the Conference and express our appreciation to the host, the European Union and the Belgian Government for their considerate arrangements.

Mr. Chairman,

China holds great concern and sympathy on the Least Developed Countries, who suffer from special economic and social difficulties and who are the disadvantaged group in the international community. Since 1990, due to the fluctuation of commodity prices, reduction of development assistance, aggregation of debts and impact of financial crisis, the economy of LDCs has been in lack of growth impetus, and has made no radical turn for the better. One indisputable fact is that, up to now, the globalization process has failed to bring LDCs the benefit they once anticipated, but instead, made those countries face the threat of being further marginalized. At the same time, the social problems of LDCs have been piling up. Issues such as poverty, unemployment, low education level, political unrest and natural disasters have become the bottleneck in the development of LDCs.

With a view to solving the economic and social problems of LDCs, there came out a series of plans and measures after mountainous dialogues and negotiations in the international community. However, those events always ended with little actions. It is fair to say that the implementation of the Programme of Action for the Least Developed Countries for the 1990s is not satisfactory, with not many indexes being satisfied and not many goals being fulfilled. However, we still place our hopes on the Conference. We hope that it could produce a new Programme of Action, which is of profound political meaning and high feasibility, so as to inject new vitality into the international cooperation for LDCs. Here, we would like to appeal to the international community, in particular! The developed countries, who benefit the most from globalization, to re-evaluate relevant policies, undertake more international obligations and transform their concerns on LDCs into forceful and effective actions. Developing countries should make every endeavor to provide support and aids to LDCs in whatever forms through the channel of South-South Cooperation.

In trade sector, firstly, the international community should actively support the trading capacity building of LDCs through providing technical assistance in their reform of foreign trade administration system, establishment of trade information network, enhancement of export capacity and diversification of commodities, etc. In this regard, UNCTAD, WTO, ITC and various regional economic agencies can do contributions. Secondly, LDCs should be provided with better market access. The current situation characterized by over-fluctuation of commodities prices, infringement of GSP and existence of tariff and non-tariff barriers must be reversed. In light of that, developed countries should try every possible means to discard the barriers that stem the access of LDCs' products to their markets. The implementation of the WTO Agreement on Textile and Clothing, which is of profound interest to LDCs should be accelerated. Relevant parties should give due considerations to LDCs' levels of development and tolerance, instead of raising unreasonable or excessive demands to LDCs on their accession to the WTO.

One of the key factors that detract the efforts of LDCs in development is the reduction of Official Development Aid and aggregation of debts. Being aware of it, developed countries should uplift ODA to LDCs in real earnest and make the ODA ratio of their GDP reach the target suggested in the last Programme of Action. In addition, the United Nations Development System needs to explore more financing channels so as to allocate more aid resources for LDCs. We applaud the latest commitments made by certain developed countries and international agencies on debt cancellation and relief for some WPCs. We hope those commitments can be fulfilled timely and extended to more LDCs.

Of course, international cooperation targeted at solving the social problems of LDCs is necessary as well. What has to be pointed out is that, such cooperation is pre-conditioned by respect on the history; culture and religion of LDCs. LDCs own the right to choose their own political systems and development routes based on their national situations. No one can deprive them of the right. Popular support never goes to the one who interferes into others' internal affairs in disguise of humanism and renders aid to others with good governance as the prerequisite.

Mr. Chairman,

China is a developing country, realizing about $800 per capita GDP, with 30 million-population still living under the poverty line. Besides, the economic development of China is quite uneven. In spite of its difficulties, China has been striving to offer economic and technical assistance to developing countries including LDCs within its capacity. What needs to be noted is that, China' s aids to foreign countries are within the context of South-South Cooperation and the scope of mutual assistance among poor friends. There are not any political conditionalities attached to those aids. The aids are provided by means of compliant projects, goods and technology assistance, as well as human resources development. China has undertaken quite many compliant projects in LDCs, involving many sectors such as agriculture, industry, transportation, energy, architecture, healthcare, education and sports. In addition, we have invited a lot of technical and managerial personnel of LDCs to China to attend professional and technical training and workshops on economic administration. China establishes a "Human Resources Development Fund", which is specially designed to help developing countries including LDCs to train their professionals.

In the Beijing Ministerial Conference of "China-Africa Cooperation Forum" held in October 2000, the Chinese Government declared that in a two-year period, China would cancel and relieve debts that some African HIPCs and LDCs owe to China, by RMB 10 billion yuans. Most of the 32 African countries involved in the commitment are LDCs. Right now; the commitment has been comprehensively put into force. With regard to the mature debts of LDCs and HIPCs in other regions, China will pay due considerations based on its capacity and the reality. As a developing country, China has been exerting its utmost in debt cancellation and relief. And we hope the international community could uplift the pace of debt cancellation and relief process.

Furthermore, China will keep on trying all it can to assist LDCs by offering them grant, preferential loans and interest-free loans which are realized in forms of projects cooperation and technical cooperation. Alongside with the deepening of the reform in the modality of China's aids to foreign countries and the growth of China’s national economic strength, China will further relax the terms of preferential loans and improve its mechanism of aids to foreign countries, so as to make its aids better meet the needs of LDCs. In addition, China also sets up special funds and incentives to encourage its competent and prestigious enterprises to invest and undertake profitable projects in LDCs.

Mr. Chairman,

In the current world, experiencing continuous expansion of globalization and ever deepening of interdependence, no country can develop on its own. China well understands its international obligations, and will contribute dully as before to the poverty eradication, economic rejuvenation and social progress of LDCs through the channel of South-South cooperation.

Thank you, Mr. Chairman.

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