China has become a major economic powerhouse and is the second largest economy in the world. Globalisation has been a key success factor and the main driver in modernising the economy and the infrastructure of that country. China registered a 7.5 per cent increase in growth during the second quarter of this year.
Today, the Chinese enjoy a better standard of living, and more and more Chinese people are taking holidays abroad which they never dreamt of taking about to a decade ago. This does not mean that poverty, especially in rural areas, has been eradicated. But anyone visiting China will realise that the country has moved forward beyond expectations. In the past decade or more, growth in China had been largely fuelled by cheap exports, leaving the domestic market largely untapped.
Economists are of the opinion that growth in the next decade will be largely fuelled by the domestic demand for products and services. It is no coincidence therefore, that major European countries such as Germany, the UK, and more recently Italy, are courting China so as to increase trade and tap on the investment appetite of Chinese government-owned entities and private enterprise.
Malta has been one of the first countries in the EU to sign a memorandum of understanding in the energy sector. This has been deemed to be a success story and the intended investment in the State corporation Enemalta has had a very positive impact on our international standings and ratings. The newly signed MOU with China explores the potential of further co-operation in a number of other important economic sectors including renewable energy.
It is hoped that besides the investment in Enemalta and the setting up of a joint-venture to repair and maintain turbines in other countries, more investment will take place, as indicated in the recently signed MOU, in the green renewable energy sector. The green economy is a sector which is growing fast and experts believe it will soon surpass ICT as more countries take steps to address climate change. Renewable energy is also a sector that creates high value-added jobs.
The MOUs signed with China have the potential of becoming a win-win situation for both countries
It is therefore imperative that the necessary skills required are identified as soon as possible. Any skills gaps that are identified in the labour market should be corrected in the shortest time possible so that these high value-added jobs are taken up mostly by Maltese nationals. This same MOU, however, includes other areas for potential investment and co-operation such as tourism.
It seems that the possibility of an air link is seriously being studied, and if this materialises, and the visa issue is resolved, Chinese tourists could see our country as a gateway to visit Malta in conjunction with other countries in the EU or in the Mediterranean area. The opportunities for the tourism sector and other related industries such as English language schools are there and are enormous, but much depends on a reduction in bureaucracy for potential business visitors, tourists and students to be given a visa in the shortest time possible.
The MOUs signed with China have the potential of becoming a win-win situation for both countries. On our part we must leave no stone unturned to make the most of these agreements so that we continue to diversify and modernise our economy and make it more competitive for businesses.
Ultimately it is these strategic initiatives that will make the difference between a modest growth in our economy and a more substantial one that is essential for our standard of living to become at par with the most advanced countries in the EU.
While it is essential for politicians and opinion writers to criticise constructively, we have to keep in mind that at the end of the day we are all in the same boat. Those who criticise these MOUs for purely political ends, or worse still, for personal agendas, depicting China as some sort of dragon ready to devour us up, seem to forget that we are now part of a powerful economic and political bloc that is the EU, and that strategic alliances are subject to EU rules and regulations to ensure a level playing field and fair competition.
Laws also exist in this country to protect workers’ rights in such cases and we at the GWU will ensure that these laws are respected. We did this before and will continue to do so now.
Victor Carachi is the president of the General Workers Union.