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Q: It is reported that the "China factor" is playing a key role in stimulating world economic growth. Is this true? China is importing large quantities of energy products such as oil. People are worrying if it will affect the international market.

A: In the middle and late 1990s, rapid economic development made China more and more dependent on the international market for its raw materials. Statistics show that in recent years, among the annual net increase of US$300 billion in world trade, US$150 billion, or half, was contributed by China. This shows that China has become one of the key factors fueling world economic growth.

Since the implementation of the reform and opening-up policies in 1978, China has reported a rapid development in its imports and exports and expanded its links with world economy. The interrelationships and mutual influence of China's market and international market and of the domestic price and international price are becoming increasingly intimate. Right now, no country can develop its economy if they close their doors to the outside world. On the one hand, we import some energy products and raw materials; on the other hand, we export finished products, which has been standard practice in other countries. Meanwhile, this mode of trade is based on equality and mutual benefit and can help achieve win-win results.

It cannot be denied that energy consumption in China has increased to a certain extent. In the future, China's position as a country that consumes a lot of energy will be more prominent than its position as an energy producing country. But people know China is both a big energy consumption and energy production country. The reason that China can depend on itself to resolve its own energy problems is mainly thanks to its energy structure and resource situation. The Chinese coal reserve is abundant, and remains the basis of its energy structure. As a result, the energy self-sufficiency rate in China reached 94 percent in 2004.

Additionally, China has great potential in energy conservation and the improvement of energy utilization. In the future, apart from further expanding the construction of large-scale coal production bases, China will actively develop hydropower and nuclear power and encourage the utilization and development of renewable sources of energy, such as wind power and bio-energy. Meanwhile, China will speed up exploration and development of oil and natural gas and will further stabilize and increase domestic oil output. In terms of energy, China does not and will not strain energy supplies in the world market.

Resolving the resource problem in China involves sticking to the self-sufficient policy as well as persisting in the reform and opening-up policies, making full use of domestic and international markets and resources; in international economic cooperation, it entails adhering to principles of equality, mutual benefit and win-win results. The "China factor" will last for a long period of time in international trade.