Transcript - E&OE
11 July 2009, Shanghai
Joint Press Conference with Innovation Minister Kim Carr
Subjects: Opportunities for cooperation between Australian and Chinese business; collaboration between Australian and Chinese automotive industries; Mr Hu/Rio Tinto developments.
Mr Crean: Well thank you very much for coming, I'm the Trade Minister from Australia Simon Crean and I'm with the Industry and Innovation Minister from Australia Kim Carr. We've planned this visit following a trip that I'd made to China in May and on that visit I went to the regions essentially to develop the second track approach to our economic relations with China. We are of course trying to conclude the free trade agreement in Beijing but there was also the opportunity region by region to look at the opportunities here in China for cooperation between Australian and Chinese business. This visit is a follow up to that. It is focused particularly on the automotive industry, which I'll invite Kim Carr to talk about in a minute, but also on urban development because these were both areas of opportunities that were identified on the last occasion we came. We are going from here into Hangzhou to Wuhu to Hefei and to Wuhan and in all of those places we will be meeting specifically with the automotive sector in areas in which Australia already has a presence here in China but looking for greater opportunities given the strength of the automotive market here and the great potential strength the Australian automotive market has to develop a cooperative relationship with China.
Urban development is also another important area. We became aware in terms of provincial development and housing development that there was a great demand for housing design and build and so we intend to follow up on those opportunities as well. This visit was planned some months ago, as I say, directly out of my last visit and out of the decision that the Australian government has taken in relation to the automotive sector.
In the last couple of days of course there has been the development with Rio Tinto and the Australian citizen Mr Hu, so I did take the opportunity this morning to make a call on the government of Shanghai to express the Australian government's strong concern about this matter. The Australian government is deeply concerned about the position surrounding Mr Hu, obviously from a consular perspective we are concerned about his welfare, the access of the family to Mr Hu the ability for him to obtain speedy expedition of his case if charges are to be laid and of course legal representation. We have conveyed the importance of this issue at the level of government here and we have been assured that that message will be conveyed. Yesterday our Consul General here in Shanghai obtained consular access in accordance with the agreement we have with the Chinese government. Mr Hu was in good health. He appeared in good health and he said he was in good health. We have conveyed that information to his family and of course we continue to follow with great concern, the welfare of Mr Hu. We've expressed that to the government, the provincial government here in Shanghai and we hope that this matter will proceed expeditiously. We have reinforce in the strongest possible terms the importance of the matter being dealt with as expeditiously as possible, having regard to the processes of Chinese law, we respect the Chinese legal system and the processes that need to be gone through, but we've indicated this too is an important issue back home in Australia for us. The matter of course is being progressed by the Foreign Minister. He made a very lengthy statement yesterday but it was appropriate given our visit here, given the fact that we're only in Shanghai for a day, that we obtain access and expressed our views. I might say that that access was sought and obtained within a very short period of time, in less than 48 hours. I think that demonstrates the recognition on the part of the Chinese government of the seriousness with which we take the issue and we will continue to press this case step by step.
I'll invite Kim Carr to talk about the importance of this mission from the perspective of the automotive sector and then we'll throw it open to questions.
Mr Carr: Well thank you Simon. The Australian government is firmly committed to the sustainability of the Australian automotive industry. We've invested $6.2 billion towards the transformation of that industry. We want to see the Australian automotive industry prosper and to prosper the Australian automotive industry must integrate within the world. We have seen already substantial progress in terms of the implementation of the government policy and as Simon has indicated, we have been planning this trip for some time, to improve the level of collaboration between the Australian automotive industry and the Chinese automotive industry which is of course the largest in the world. Today we have met with General Motors and their joint venture partners, the largest automotive company in the Peoples Republic of China. We've seen part as a result of that conversation that engine exports from General Motors plants in Port Melbourne are likely to increase by 400 per cent over the next four years to move from a present 6,000 volume through to a 20,000 over a four year period. Now that one particular event demonstrates the opportunities there are here for the Australian automotive industry in the People's Republic of China, its automotive industry, to be able to collaborate to improve its cooperation whether it be in light metals, whether it be in battery technologies, whether it be in fuel systems, whether it be in composite materials. Both the industries want to move towards a green future. We have the technology, we have the quality we are one of the fifteen countries in the world that can make a car from the very beginning to the showroom floor and we want to share that technology and work with the People's Republic of China in ensuring that we are able to improve the operations of both our automotive industries.
Mr Crean: Ok questions.
Reporter: Mr Crean, were you given any details of the matters actually under investigation in relation to Mr Hu.
Mr Crean No, we were not and we've stressed the importance of getting further and better details, but of course we are dealing with the local government, the Shanghai government not with the national government and they made that point to us. I might say though our primary concern was for the welfare and the expeditious processing of the circumstances surrounding Mr Hu.
Reporter: Do you have any concerns at all about the way the matter is being handled?
Mr Crean: No I don't have concerns about the way in which the matter is being handled, its being handled back home by the Foreign Minister treating it correctly as a consular case. What we have stressed because this is the first opportunity we've had to convey the message government to government, the importance of the process being dealt with expeditiously and of course with further and better particulars being made available. I might say that we're also of the view that what has been done here is in accordance with the agreement, the consular agreement that we have with China.
Reporter: So it would be fair to say you have no problems at all with the Chinese procedures?
Mr Crean: Our concern is Mr Hu's welfare and that's the point that we've expressed. Whatever system it is, we share that concern for Australian citizens detained in any foreign country. Now of course we have a different set of rules back home for the treatment of individuals if they're detained, than is the case here. But that's the nature of international law, we have to respect their system and work within it. That's what we're doing. What we've tried to impress is not that they change their system because we have to work within it, but rather that the matter be progressed as expeditiously as possible.
Reporter: Is it your understanding that the investigation relates to the current iron ore price negotiations?
Mr Crean: We have no information as to what the investigation does involve. We are going on the basis of press reports. The government here is not able to inform us any more. We've conveyed to them the importance in turn of conveying our concern to Beijing and ensuring that the process is expedited and that we have greater clarity as to what the issues surrounding Mr Hu's detention actually are.
Reporter: Do you know anything more ... inaudible... lawyer... or when Australian consular officials... inaudible...
Mr Crean: We have obtained consular access yesterday, we are pressing for continuing consular access, we are pressing for access for his family and obviously if charges are laid and at this stage they have not been laid, and we've urged the expedition of that process then clearly we are also pressing for availability of legal representation as well.
Reporter: Is there any risk at all that other Australian citizens may be brought into this investigation and perhaps detained?
Mr Crean: We have no information or nothing to lead us to that view.
Reporter: It is said that during the iron ore negotiations that Mr Hu gave a copy of the Chinese groups internal meeting minutes to the Rio Tinto group. What do you think of that?
Mr Crean: Well again, you're going on news reports, so are we. What we are seeking is greater clarity. But if those reports are right, it clearly demonstrates this is clearly a matter pertaining to commercial activity.
Reporter: Mr Crean, have the Chinese given you any indication of why they haven't spoken to you directly and why you are going on press reports not actual direct contact?
Mr Crean: Well again, we've met with the provincial government. This visit was planned some time ago it was not our intention to go to Beijing, that's not in the plan. This is the city where Mr Hu is being detained and I thought it appropriate given our presence here that we meet with the provincial government to register our concern. But clearly the provincial government is not in a position to speak for Beijing but importantly it demonstrates the strength of the Australian government concern in this matter. We've had the opportunity to demonstrate that concern face to face we have been given undertaking that our messages will be conveyed not only here to the party but also in Beijing.
Reporter: Do you think this seems in anyway likely to damage trade relations between the two countries...:?
Mr Crean: I see no reason why our trade relationships will be damaged. If what we can get is an expedition of the process in accordance with Chinese law and in the process that the welfare of the Australian citizen is being properly had regard to.
Reporter: What happens if the Chinese... inaudible... Australian law... inaudible...?
Mr Crean: Well we can't apply Australian law in China, just as China can't apply Chinese law in Australia. That's the nature of international law. When business come and do business in another country, they have to have regard to the legal system. We've made that point, the Foreign Minister has made that point time and time again. What we have to do is to work within the system, work within the agreements we have within those countries but to urge at the political level the importance of dealing with this first of all based on the welfare of the individual and secondly on expedition of process.
Reporter: Who did you speak to today?
Mr Crean: I spoke to the Deputy Secretary General of the Shanghai Government, Mr Sha.
Reporter: Were you happy with that level of access?
Mr Crean At short notice I was. I met with the party secretary here only two months ago and I met with the mayor not long before that. We've had terrific access every time we've come. They conveyed their apologies for not being able to meet with us on this occasion. Bear in mind its Saturday bear in mind the request for meeting was made only within the last 48 hours. The fact that they did meet with us, they made themselves available, they listened, they undertook to convey that message, I am very satisfied with the level of access but importantly the opportunity to convey the message and the commitment that message will in turn be relayed, not just here in Shanghai at the party level, but significantly in Beijing.
Reporter: ... (inaudible)... approach Beijing directly as the final step in the sequence
Mr Crean: As the Prime Minister has indicated this is something that has to be approached on a step by step basis. Yesterday we got consular access. We got that in accordance with our agreement. We will continue to pursue that. We've expressed our concerns about the welfare of Mr Hu because that is our prime concern, an Australian citizen. We will continue to assess the situation as it develops but we are satisfied that we today have expressed the Australian government's very strong concern in this matter and the need for it to be dealt with expeditiously and the welfare of Mr Hu to be properly regarded.
Reporter: ... (inaudible)... what is your assessment of the commercial environment in China when investigation reports are being published... (inaudible)...
Mr Crean: I'm sorry I didn't hear the last part of that question...
Reporter: What is your assessment of Chinese commercial environment when all investment... (inaudible)... because we are now seeing... (inaudible)... has business affected your assessment of the business environment...
Mr Crean: Look, we've heard all the arguments about allegations. What we operate on is fact and if allegations are made and if evidence exists about illegal activities, then the law should take its full course. But as for the commercial opportunities, the commercial opportunities in China are very strong for Australian interests., The interdependence between our two economies is very strong. China this year will probably again emerge as our largest trading partner, not only in goods but in services and investment. That's the whole purpose for us continuing to develop commercial relationships region by region as well as to try and develop t he framework through the FTA for formalizing in a more structured way the nature of the relationship. We believe that both economies, Australia and china need each other, there are huge complimentaries develop those to the fullest possible extent but we should always do it within the law. The government will do it that way and our very strong message is to every commercial interest is that they too need to do it that way.
Reporter: At the other end of the relationship, is it going to make it harder for China's state owned enterprises to invest in Australia, given the fact that they ... be certain of political considerations following ... (inaudible)...
Mr Crean: I believe that if we have to deal with the complexity of this relationship with China by better understanding as to how it works. The issue of state owned enterprise has been ongoing issue for some time as you are aware. Provided there is transparency, openness they operate along commercial lines, we do not have any problem with that. We welcome Chinese investment in Australia but we've continued to stress the point that investment is a two way street. We too are looking for investment opportunities here in China and the sorts of things that Kim has been talking about opportunities to develop in urban design and ... these are the sorts of investment opportunities that we hope Australian firms can also make. Why? Not because its just in the interests of Australia but because we also believe it is in the long term interests of China as well. That's the relationship we want to strengthen, that's what we're here to do, that's what we'll persist with. For those of you who are coming on the visit with us, we look forward to you seeing how we can develop this relationship at the commercial level. Thanks very much.
[ENDS]
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