China And Mongolia - Parliament Of Australia

The Parliament of the Commonwealth of AustraliaReport of the Australian Parliamentary Delegation toChina and Mongolia7-19 April 2005October 2005Canberra

Commonwealth of Australia 2005ISBN 0 642 78716 6

ContentsMembership of the Delegation. vIntroduction .1Aims and objectives of the Delegation . 1Overview . 2Acknowledgments . 3Bilateral visit to China.7China at a glance . 7Background. 8The National People’s Congress and State Council. 10Economic overview . 12Bilateral relations between Australia and China . 13The Delegation’s program. 16Conclusions . 28Bilateral visit to Mongolia.31Mongolia at a glance . 31Background. 32The State Great Hural . 34Recent political developments. 34Economic overview . 35Bilateral relations between Australia and Mongolia. 36The Delegation’s program. 38Conclusions . 50

ivAppendix A .53Delegation Program 7-19 April 2005. 53

Membership of the DelegationLeaderHon David Hawker MP, Speaker of the House ofRepresentativesDeputy LeaderSenator the Hon Nick Bolkus (Australian Labor Party)Senator for South AustraliaMembersSenator the Hon Judith Troeth (Liberal Party ofAustralia)Senator for VictoriaSenator Linda Kirk (Australian Labor Party)Senator for South AustraliaHon Peter Slipper MP (Liberal Party of Australia)Member for Fisher (Queensland)Mrs Margaret May MP (Liberal Party of Australia)Member for McPherson (Queensland)Luke Hartsuyker MP (National Party of Australia)Member for Cowper (New South Wales)SecretaryMr Richard SelthTable Office, House of RepresentativesSenior Adviserto the SpeakerMr Christopher PatersonThe Delegation was accompanied by Mrs Penny Hawker, Ms Inge Jane Hall andMr David May

1IntroductionAims and objectives of the Delegation1.1This report presents the details of the activities and observations of adelegation from the Parliament of Australia which visited China andMongolia in April 2005. The Delegation’s program is included asAppendix A to the report.1.2The Delegation agreed on the following aims and objectives, which wereformulated with advice from the Parliamentary Library and theDepartment of Foreign Affairs and Trade.In China: Renew contacts and dialogue with the National People’s Congress includingthe promotion of regular contacts between the NPC and the AustralianParliament; Gain an enhanced understanding of China’s internal political, social andeconomic challenges; Gain Chinese perspectives on prospects for security and stability in East Asia,including avenues for alleviating tensions on the Korean peninsula, andChina’s approach towards Asia-Pacific regional cooperation, particularly inrelation to APEC and the ASEAN plus Three process; Review recent developments in China’s external economic relations, includingits process of implementation of commitments to the World TradeOrganisation; and Review the prospects for further enhancement of Australia’s economicrelations with China, including prospects for negotiations of a Free TradeAgreement.

2DELEGATION TO CHINA AND MONGOLIAIn Mongolia: Renew contacts with the Mongolian parliament; Gain an enhanced understanding of Mongolia’s internal political and economicchallenges; Assess Mongolia’s perspectives on Asia-Pacific security issues, including theevolution of the roles of the United States, China and Japan and prospects forpeaceful cooperation to resolve sources of potential tensions; Review the progress of Australia’s bilateral relations with Mongolia andexplore the potential for the further development of economic cooperationbetween Australia and Mongolia.Overview1.3The aims and objectives of the Delegation were clearly met. In a busy andvaried program, Delegation members had the opportunity to informthemselves of developments in China and Mongolia in a range of areas,and to explore the possibilities for developing further the existing linksbetween Australia and the two countries. Members welcomed theopportunity to meet senior members of the parliament and government inboth countries; the level of access given to the Delegation in both countrieswas particularly pleasing.1.4The visits were interesting and informative, providing the opportunity tosee one country which has undergone the transition to liberal democracyand a market economy and another which has transformed its economy inthe context of its existing political structures. The Delegation appreciatedthe opportunity to witness the efforts made to deal with the verysignificant and different challenges faced by the two countries.1.5The restructuring of the economies of the two countries, China’s since1978 and Mongolia’s since 1990, has been remarkably successful, althoughat times it has been at a certain cost. Mongolia experienced soaringinflation and high unemployment in the early 1990s, and this inevitablymeant hardships for some. China is still responding to the domesticimpact of the development of its economy and is seeking ways to spreadthe benefits more widely. The challenge facing the governments in bothcountries now is to deliver increasing certainty and improving livingstandards for their people while continuing the necessary restructuringwhich will provide the basis of long term prosperity.1.6The Delegation examined very keenly the opportunities for greaterAustralian trade and investment links in the region. There are strongpeople to people links with both countries, and a great deal of goodwill.

INTRODUCTION3The Delegation believes that there are significant areas for possibleinvestment or joint ventures that have not been fully explored.1.7The Delegation was impressed by the language skills of Australianembassy staff in China, and found those skills to be invaluable on anumber of occasions. They also noted the very positive impression that theability and willingness of embassy staff to speak the language of thecountry made on members of the Chinese community, and the benefit thatlanguage skills can offer in exploring possible trade and investmentopportunities.Acknowledgments1.8The Delegation wishes to express its appreciation of the efforts of all thosewho contributed to the success of its visit. In particular, the Delegationwishes to acknowledge the following contributions:Canberra1.9The Delegation received oral and written briefings from officers of theDepartment of Foreign Affairs and Trade and the Department of theParliamentary Library prior to its departure. The Delegation wishes torecord its thanks to all staff who contributed to these briefings andassisted with administrative arrangements for the visit.1.10The Delegation wishes to thank the staff of the Parliamentary RelationsOffice, in particular Ms Brenda Herd, for her administrative assistanceprior to departure.Australian Embassy, Beijing1.11The Delegation wishes to thank H.E. Dr Alan Thomas, AustralianAmbassador to China and Mongolia, and other Embassy staff, for theircomprehensive briefings and invaluable assistance throughout the periodof the Delegation’s visit. Ms Catherine Simmons accompanied theDelegation during the visit to China, and Ms Alice Cawte and Ms AvivaGulley accompanied the Delegation in Mongolia, giving informed andfocused advice and ensuring that the program ran smoothly. In Shanghaithe Australian Consul-General, Mr Sam Gerovich, gave valuable supportand advice.China1.12The Delegation wishes to record its appreciation of the National People’sCongress, Chairman Wu Bangguo, Vice-Chairman Mr Redi and othermembers of the NPC for the warm welcome and hospitality extended to

4DELEGATION TO CHINA AND MONGOLIAthe Delegation during its visit, and for the time taken by the leaders of theNPC to meet the Delegation to discuss a range of issues. In particular, theDelegation thanks Mr Jiang Yunbao, Vice-Chairman of the ChinaAustralia Friendship Group of the NPC, who accompanied the Delegationthroughout its visit. The Delegation also thanks Chairman Jia Qinglin ofthe National Committee of the Chinese People’s Political ConsultativeConference for the opportunity to meet and discuss a range of issues withhim. The Delegation appreciated the opportunity to exchange views andinformation on matters of mutual interest and to receive positiveaffirmation of the good relations between Australia and China.1.13The Delegation wishes to record its thanks to officers of the NationalPeople’s Congress for the excellent administrative support provided to theDelegation during the visit to China, and for their assistance on a range ofmatters. In particular, the Delegation thanks Mr Chen Guomin, DirectorGeneral of the Foreign Affairs Bureau of the Standing Committee of theNPC and Mr Yang Yongyi, also of the Foreign Affairs Bureau.1.14In addition, the Delegation wishes to express its appreciation of thehospitality and briefings given to it by members of various governmentdepartments, municipal and provincial representatives and many otherswho contributed to the success and enjoyment of the visit, in particularMr Gong Xueping, Chairman of the Standing Committee of the ShanghaiMunicipal People’s Congress, Mr Lei Xiping, Chairman of the StandingCommittee of the Guilin Municipal People’s Congress and Mr Sui Lintao,First Vice-Chairman of the Standing Committee of the Shaanxi ProvincialPeople’s Congress.Mongolia1.15The Delegation wishes to record its appreciation of the hospitality andcourtesy extended to it by the State Great Hural of Mongolia, the thenChairman, His Excellency President Nambaryn Enkhbayar, the ViceChairman, Mr Danzan Lundeejantsan, the Head of the Mongolia-AustraliaParliamentary Group, Mr Nyamaa Enkhbold and other members of theState Great Hural during the Delegation’s visit, and for the warmth oftheir welcome. The Delegation was grateful for the opportunity to discussmatters of mutual interest and to confirm the good relations betweenAustralia and Mongolia.1.16The Delegation also wishes to thank senior members of the MongolianGovernment who made themselves available for meetings with theDelegation. These included the then President His Excellency NatsagiynBagabandi, the Prime Minister, Mr Tsakhiagiyn Elbegdorj, the ForeignMinister, Mr Tsend Munkh-Orgil and the Minister for Trade and Industry,Mr Sukhbaatar Batbold.

INTRODUCTION1.175The Delegation wishes to record its thanks to officers of the State GreatHural for the excellent administrative support provided to the Delegationduring the visit to Mongolia, and for their assistance on a range of matters.In particular, the Delegation thanks Mr Markhaaj Choidorj, Head of theForeign Relations Department of the State Great Hural andMr L Enkhbold, also from the Foreign Relations Department, for theirinvaluable advice and assistance.

2Bilateral visit to ChinaChina at a glanceOfficial NamePeople’s Republic of ChinaForm of StateRepublicHead of StateH.E. President Mr Hu JintaoHead of GovernmentH.E. Premier of the State Council Mr Wen JiabaoNational LegislatureNational People’s Congress, a unicameral parliamentof approximately 3000 members elected by provincial,regional and municipal congresses for five-year terms.ExecutiveState Council, appointed by the National People’sCongressCapitalBeijing, population of greater urban area – 14.9 millionLanguageMandarinPopulation1.3 billionArea9.56 million square kilometresGDPUS 1600 billion (2004)GDP per capitaUS 1232 (2004)GDP growth9.5% (2004)Current Account BalanceUS 55.1 billion surplus (2004)Inflation3.9% (2004)Unemployment9.8% (2004)