The Day (March 16) carried Iryna Klymenko's economic review, "Twilight
for the Chinese Dream." Among other things the author noted the Chinese
delegation's visit to Ukraine and dwelt on China's economic problems, drawing
parallels with the government's Ukraine 2010 program. The Editors received
a letter from Chinese Ambassador Extraordinary and Plenipotentiary Zhou
Xiaopei. In full conformity with democratic principles and respecting personal
opinions, The Day carries this letter below.
"I feel utmost respect for your staff and I appreciate the analytical
depth of your articles. However, I must inform you that after reading the
article 'End of the Chinese Dream' I found myself under an unpleasant impression.
Some of my Ukrainian friends called and voiced their indignation at this
publication. Of course, I take such things calmly. The Occident and Orient
belong to the regularities of nature: we shall see what we shall see. But
is it worthwhile predicting a coming collapse?...
"It is true that no one in Ukraine knows anything about the sunset of
the Chinese dream. I would even say that few elsewhere in the world predict
it. God grant that this misunderstanding originates not from bias, but
from lack of knowledge about Chinese realities. Over the past twenty years
China has been conducting a policy of reform and openness, so one must
not look at this again through the prism of 'rigid censorship.' In addition,
China is not reproducing the old state economy, rather it is building a
socialist market economy. Incidentally, a recent session of the National
People's Congress enacted an important amendment to the Constitution, elevating
the legal status of the private sector as 'an important component of the
socialist economy.'
"One of the greatest merits of the chief architect of reform, Deng Xiaoping,
is precisely that he philosophically united different things that cannot
be formally united. Of course, restructuring the state economy is a bitter
process accompanied by contradictions and difficulties. We do have a number
of large unprofitable state enterprises, and this is precisely why our
government set the task of liquidating this damage within three years.
The year 1998 saw the accomplishment of one-third of this goal.
"As for the negative impact of the Asian financial crisis on the development
of the economic situation in China, it is indeed very heavy, even critical.
Moreover, the Chinese people has also suffered from the worst flood registered
over the past century, damaging the Chinese economy to the tune of $30
billion. Under the burden of these two misfortunes China has not only survived
but shown 7.8% economic growth. Retail costs have dropped by 2.6%, and
consumer costs to the population have shown an overall 0.8% decline. In
1998, overall imports and exports reached $323.9 billion. The total amount
of direct practically implemented foreign investment amounted to $45.5
billion. Frankly, there is a degree of dissatisfaction among the populace,
particularly with regard to corruption, and certain confrontations occur
now and then. But against the general background of the crisis the living
standard of the Chinese people is not getting lower but rising and
the people are content with this situation.
"In spite of the gloomy forecasts offered by numerous experts, predicting
the inevitable devaluation of the Chinese yuan, the Chinese government
resolutely ruled out the possibility of lowering the national currency
exchange rate, conducting an active financial policy, increasing domestic
market demand. Perhaps because we have a foreign exchange reserve totaling
$145 billion. This is a solid support. There is an opinion to the effect
that yuan devaluation would be good for exports. China, however, is a responsible
country and would not want to add to the world financial crisis, a fact
which the international community duly appreciated, highly praising China's
financial policy. I would like to point out that IMF loans given to countries
damaged by the financial crisis include China's share.
"It is true that there are a great many problems and hardships in China.
Its arable land occupies a mere 10% of the planet's total, and 1,200,000,000
persons have to be fed, which is 22% of the human race. True, over the
past twenty years annual average economic growth increment has reached
9.8%, but there are still several tens of millions resident living below
the poverty line. On the other hand, we had more than 200,000,000 poor
before reform started. Well, hard facts are hard to refute.
"There is one thing I would like to stress: the Chinese people know
from their own experience that blindly copying or criticizing someone else's
'dream,' forgetting about one's own specifics, does not always work. Personally,
as Ambassador, I sincerely wish the wise Ukrainian people all the very
best, rebirth of a great Ukraine, and 'sunrise of the Ukrainian dream.'
With profound respect, Zhou XIAOPEI, Ambassador Extraordinary
and Plenipotentiary of the People's Republic of China to Ukraine







