Drilling: China is committed to integrate into existing framework… Chu Maoming

In a speech at the Nigeria Chapter Conference of the International Association of Drilling Contractors, IADC,  Chu Maoming, Consul General, Chinese Consulate in Nigeria says China is determined to key into existing framework to enhance efficiency in drilling business.

OpenLife was at the Oriental Hotel venue.

The Honorable Enaibe Ote, Chairman of IADC Nigeria Chapter, Distinguished guests, Ladies and gentlemen, it is a great pleasure of mine to be here with you at the anniversary conference of the International Association of Drilling Contractors Nigeria Chapter and give this speech.

First of all, please accept my sincere compliments to the IADC and all its members. The IADC is a reputable international professional association which plays a critical role in the development and operation of the drilling industry. It is the provider of the sensible and fair regulations for the drilling industry as well as the voice of its members.

To my knowledge, headquartered in the United States, the IADC, with its 2 professional and equitable performance in serving its members, has attracted all the major Chinese drilling companies to register with it. Here in Nigeria, the Chinese companies in the drilling industry like SINOPEC, CNOOC, ADDAX, are also its members. Not only in drilling industry, but in almost all fields in the world, you can see China is doing its best to integrate into the existing framework, to respect the sensible and fair standards and regulations, even to contribute its wisdom and innovations to improve or optimize the current framework jointly with its counterparts all over the world. Yes, China is open to the world, without any prejudice or hostility.

Owing to its consistent opening-up and reform in the past 40 years, China has grown into the second largest economy in the world. In the first quarter of this year, in spite of the trade dispute between China and the United States, our economy still keeps a growth rate at 6.4% with the total value of foreign trade 1.03 trillion US dollars. FDI in China from non-financial sectors reached $35.8 billion in Q1, up 3.7% year-on-year. The sound economic performance of China 3 reveals the truth that we still have great potential in economy, as long as we adhere to the principles of opening-up and win-win cooperation with global partners.

In fact, China welcomes all the countries to share their development outcomes. To achieve this vision, China proposed the Belt and Road Initiative (BRI). Close to six years since its inception, the BRI has received strong endorsement and warm support from the international community.

So far, a total of 127 countries including Nigeria and 29 international organizations have signed BRI cooperation documents with China. The BRI has obviously become a widely welcomed international public good with a far-reaching and positive effect globally. But here I must emphasize that although the BRI originated from China, it belongs to the world. It is rooted in history, but oriented towards the future. It focuses on Asia, Europe and Africa, but is open to all partners. It spans different countries and regions, different stages of development, different historical traditions, different cultures and religions, and different customs and lifestyles. It is an initiative for peaceful 4 development and economic cooperation, rather than a geopolitical or military alliance. It is a process of open, inclusive and common development, not an exclusionary bloc or a “China club”.

It neither differentiates between countries by ideology nor plays the zero-sum game. And this is the fundamental difference of perception on the BRI between China and the current US government. You all know in the past year, the economic and trade dispute between China and the United States, triggered by the latter, has made the world economy full of uncertainty. At stakes are the fundamental interests of the two peoples, and the prosperity and stability of all the other economies. The latest OECD economic outlook indicates that escalating China-US trade friction could cause a 0.7% loss in global GDP from 2021 to 2022, which is nearly $US600 billion. The WTO has slashed global trade growth forecast for this year from 3.7% to 2.6%, the lowest for three years. No economy could escape if such a slowdown in economic growth takes place worldwide. Trade between the world’s two largest economies is not only important for China and the United States, but 5 also influential for all other economies around the world. Bearing that in mind, China participated in the trade talks with utmost sincerity and good will, aiming to resolve the differences with the United States through proper negotiations. Regrettably, the United States resorted to maximum pressure during previous rounds of talks, insisted on staging a trade war unilaterally and indulged in bullying practices.

In addition, the US side has been flip-flopping all along at the negotiation table, and kept slinging mud at China with fact distorting statements in the deadlock of the negotiations, in a bid to cover up its own faults. China is committed to resolving disagreement through dialogue and consultation. But it must be done on the basis of mutual respect, equality and good faith. Any resolution should be mutually beneficial. China never succumbs to unreasonable demands that will do harm to its core interests and the legitimate rights of development. China does not want a trade war but will not dread fighting one. China has every confidence in fending off external disruptions and maintaining stable economic 6 growth. No matter where the China-US trade talks head to, China will continue to promote multilateralism, advocate a rule-based multilateral trading system with the WTO at its core, support WTO reforms and push forward the liberalization and facilitation of free trade and investment. China will continue to take major steps to promote comprehensive deepening of reforms and opening up and expanding of market access for foreign investment. First, we will continue to strengthen international co-operation in intellectual property protection. Some politicians of the current US government accused China of stealing intellectual property. That is an unfounded fabrication. China is fully committed to intellectual property protection. It has established a legal system for the protection of intellectual property that is consistent with prevailing international rules. The understanding of the importance of intellectual property among the general public and business community in China has increased, the value of royalties paid to foreign rights-holders has risen significantly, and the number of intellectual property applications and registrations has surged. 7 According to the data from World Intellectual Property Organization (WIPO), in 2017, the number of Patent Application by residents of China reached 1.25 million, but that of the United States is only 293,904. In the same year, the number of Patents Granted to residents of China is 326,970 while the US number is 150,949. So, if the United States worries about patents being stolen, China has to worry more. Second, China will continue to scale up importation of goods and services. In last year, the first China International Import Expo (CIIE) was held, attracting 172 countries, regions and international organizations and more than 3600 enterprises from outside China. 7 Nigerian enterprises were also invited to attend this Expo. Now we are preparing the second CIIE, and we welcome more Nigerian business people to attend it with Nigerian products. Besides, the first China-Africa Economic and Trade Expo will be held later this month in Changshan, China. This expo will spotlight cooperation between China and African countries in manufacturing, agriculture, infrastructure and emerging sectors such as finance and cross-border e-commerce. 8 Why do we organize this Expo? Because the economic and trade relationship between China and Africa is so important for both sides. In 2018, China-Africa trade has been growing steadily, reaching $204.2 billion, up 20% year-on-year. China has been the top trade partner of Africa for 10 years in a row. China’s investment in Africa has also seen strong growth, by the end of 2018, more than 3,700 Chinese companies had set up branches in Africa and brought over US$46 billion to the continent. As to China Nigeria economic relations, Nigeria remains China’s largest project contracts market and the third largest trade partner in Africa. In the first 4 months of this year, trade value between us was US$5.42 billion, up 20.2%. There are a batch of Chinese engineering contractors, such as CCECC, CHEC, etc., working and financing for the improvement of Nigerian infrastructure like expressways, railways, airport terminals, power stations and deep sea ports. And what’s more, an increasing number of Chinese companies choose to invest directly in Nigeria in fields of agriculture, manufacturing, free trade zone development, and even modern service industries like E-commerce and 9 mobile game development. Ladies and gentlemen, Nigeria is the largest economy on this continent, and gas and oil industry plays a critical role in its economy. Gas & oil companies from China, as the members of the IADC, will cooperate with all the related parties to serve this great nation’s economy by contributing their professional spirits, advanced technology and equipment, and abilities in financing and project management. Besides, we also highly appreciate the efforts the Nigerian government has made in diversifying its economy. I am of full confidence that China could do more in this economic diversification process by sharing its development experience and profits with the Nigerian government and people under the framework of joint construction of the BRI.

I thank you all for listening.