Statssekretær Karin Yrvin

Tale til Norwegian Business Association

Shanghai 20. september 2006

Ladies and Gentlemen,

It is a great pleasure for me to be here today. I would like to start by thanking the Norwegian Business Association for organizing this event, and for inviting me. I’m always happy to be back in China. In many ways, Shanghai stands as a symbol of China’s broader role in the global economy. Impressive, historic and undergoing transitions.

China's integration in the world economy, politics and culture is perhaps the strongest image of our globalized world.

China's economic growth for the last 25 years, which have lifted millions and millions people out of poverty and created unprecedented prosperity for its population, is truly impressive. Still, challenges remain, for China as for Norway, and China’s decision on how to manage its development and how to use its international influence, will have an impact on us all.

China now ranks as the fourth largest economy in the world and is among the world’s greatest receivers of foreign direct investment. China has become a major market, a major player and a strategic partner.

Today, China and Norway are partners in the WTO. China has prospered from a period of strong economic growth following membership in 2001. Not only did the Chinese accession to the WTO imply the integration of a major market into the international economy. It also strengthened the international community’s confidence in the Chinese economy.

I was in Hong Kong last December during one of the rough spots in the Doha- negotiations.

I was saddened by the outcome!

However, China played a constructive role.

But I am glad to note that both China and Norway are committed to resuming the Doha negotiations as soon as possible.

We can’t afford to give up a freer and fairer global trade!

It is our responsibility, together with the rest of our partners in the WTO, to work together towards a successful conclusion of these negotiations. It’s our obligation to lay down a sustainable foundation for employment, economic growth and welfare. If we do not succeed, the costs, particularly to the less developed countries of the world, will be tragic. If we succeed, the benefits will be enormous.

The bilateral relationship between Norway and China covers a wide range of areas such as politics, economy, energy, culture and research. In these areas, we should engage and learn from each others strengths as well as weaknesses. On our part, we should never forget hat China is one of our civilizations points of origin, the world's most populous country, and a country that is growing more prosperous every day.

Indeed, China is Norway’s biggest trading partner in Asia. We welcome the strong increase in imports from China of high-quality and highly affordable electronics, clothes, shoes and other consumer products.

The maritime sector has been one of the main pillars in the close trade relationship between China and Norway both in the past and at present. Norwegian ships have called on Chinese ports for over 150 years. China’s increasing need for sea transport is to a large extent met by Norwegian ship-owners.

China is also a very important source of recruitment of highly qualified and skilled seafarers to Norwegian vessels. This has lead to cooperation between Norwegian ship owners and China on education of Chinese seafarers.

Today we see a broadening of business relations.

China has become a major market for our seafood products. We cooperate and trade extensively in the environment and energy sectors.

Many Norwegian companies in the ICT industry are active in China. China is increasingly important in this area, both as a country of production and as a market.

Major Norwegian companies like Hydro, Norske Skog and Kongsberg have invested in production facilities in China, both to meet Chinese demand for their products and for exports.

The establishment of a DnB NOR branch office will facilitate expanded economic cooperation in the financial sector.

We would also like to see an increase in Chinese tourism to Norway. Presently the Norwegian government is working actively to follow-up on the visa agreement for Chinese tourists.

Despite increasing business activity, we still have opportunities to broaden and deepen our relationship. This can only be achieved through hard work. On your point, and by the Chinese and Norwegian governments.

For many businesses, entering China is an adventure into the unknown. I am aware that many of you face challenges in the Chinese market today.

How does the Norwegian Government assist Norwegian companies in markets like China?

We follow a two-fold strategy.

First, the Norwegian Government emphasises the importance of an active and predictable trade policy. At home this means providing stability for companies to plan ahead and invest in the future.

We want to facilitate profitable production beneficial for the society at large; efficient use of resources and sustainable development.

Norway has to compete with the advantages that we have. For us that means high level of education and a well-developed public sector.

We have to focus on knowledge, research and development, and target areas where we are good. And we need a predictable economic policy.

An active trade policy is about initiatives abroad as well as at home. Increased internationalisation is a natural part of this, and a priority for the Norwegian Government.

The second dimension in our strategy is to develop well-functioning economic relations with the Chinese authorities and to support Norwegian businesses in their activities in the Chinese market.

The Norwegian government conducts this policy through an active dialogue with the Chinese authorities both on multilateral and bilateral issues.

We are entering governmental co-operation agreements with China in a number of areas like tourism, science, research, investments, energy and maritime innovation.

The mixed Chinese-Norwegian economic commission discusses questions regarding the conditions for business operations in China and specific business cases.

We have also taken steps to strengthen Innovation Norway’s presence in China.

Furthermore, I am happy to note that official visits are becoming more frequent. This week the Chinese Minister of Trade Mr. Bo Xilai visited Oslo and next week we are receiving Vice Premier Zeng Peiyan.

The most important topic for us in these talks is the establishment of a Free Trade Agreement between EFTA and China.

I would like to round off with a few words on human rights. The Norwegian Government is working actively for global fairness and socially sustainable globalisation. This is why we have started a Human rights dialogue with China. CSR and labour rights are central aspects of the dialogue. Norway wants to work together with China to promote global fairness in the ILO, in the UN and in other international fora.

There is little doubt that China will continue to experience impressive growth in the years ahead. It represents a huge market; it possesses a large pool of resources, not at least a large and dedicated workforce.

I am proud to witness the good relations that Norwegian companies seem to have established here in Shanghai.

You are all important in creating a trust-worthy and serious image for Norwegian businesses in this country.

This will no doubt help pave the way for other Norwegian companies entering China.

I would like to thank you again for having me here today .

I wish you all the best of luck for your continued success here in Shanghai and China. I wish you a continued fruitful seminar here today and a nice lunch!

Thank you for your time.