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Ambassador Xiao’s Speech at Maritime Media Briefing
2024-04-05 19:10

The theme of today’s briefing is "Ocean", which serves as the habitat for people from all countries including China and Greece, and a natural platform for the exchange and mutual learning of different civilizations. It is also a highlight of mutually beneficial cooperation between China and Greece.

From April 16th to 17th, Greece will host the 9th "Our Ocean" conference, a grand event for global maritime affairs to exchange insights and cooperate with one another. Our Ocean 2024 will focus on topics such as ocean green transformation, ecological environmentand sustainable development. The Chinese government highly values Greece as the host country of this conference and will send a delegation to attend Our Ocean 2024 led by Sun Shuxian, Deputy Minister of the Ministry of Natural Resources and Director of the State Oceanic Administration. During the conference, China will also hold a side event on the theme of "CultivateBlue Citizens, PromoteBlue Partnerships, and TakeAction for a Healthy Ocean", and we sincerely welcome you to attend and report.

Next, I will brief from four aspects: the coordinated development of China's marine economy and marine technological innovation, China's steadfast defense of its own maritime rights and interests, the achievements of China-Greece maritime cooperationand the prospects of China-Greece maritime cooperation. Finally I am willing to take some questions.

I、Coordinated Development of China's Marine Economy and Marine Technological Innovation

As a big maritime country, China attaches great importance to the protection and sustainable utilization of the ocean and marine resources, elevating building China into a maritime power to the level of national strategy. The development of the marine economy and marine technological innovation is an important component of this strategy.

1. High-quality development of the marine economy.

From 2012 to 2022, the total output value of China's marine economy increased from 5 trillion yuan to 9.5 trillion yuan, accounting for about 9% of Chinese GDP. It has played an important role in ensuring economic stability and security. In China,the transformation and upgrading of traditional marine industries have accelerated, with China's marine products output ranking first in the world for many years, and its maritime shipping volume exceeding one-third of the global total. Offshore oil and gas have become important growth drivers for the national energy sector. The annual average growth rate of emerging marine industries' added value exceeds 10%, and China's total capacity for marine engineering equipment assembly construction has entered the forefront of the world. The scale of seawater desalination projects has exceeded 2 million tons per day, providing important guarantees for water resources security in coastal cities and islands.

2. Breakthroughs in marine technological innovation.

Breakthroughs have been achieved in marine exploration and operational technologies represented by submersibles such as "Jiaolong" and "Striver", with a significant increase in the domestication rate of core components. China has achieved breakthroughs in offshore oil and gas exploration and development, with breakthroughs in exploration at depths of 3,000 meters and successful trial production of combustible ice in the South China Sea by the ultra-deepwater dual-derrick semi-submersible platform "Blue Whale 1". The world's first semi-submersible wave energy aquaculture platform "Penghu" and the fully submersible deep-sea aquaculture equipment "Deep Blue 1" have been delivered and put into use.

In response to the interests of Greek friends, I would like to provide three more examples:

The first one is Marine ranching. In 2013, the Chinese government proposed the development of "marine ranching" in response to the needs of marine fishery transformation and ecological construction. Over the past decade, China has continuously optimized the layout of green aquaculture in coastal areas, vigorously built a "blue granary", and developed sustainable offshore fisheries. It is estimated that every 10,000 hectares of marine ranch can absorb about 230,000 tons of carbon from the atmosphere and the ocean each year, equivalent to afforestation of 10,000 hectares. As of July 2023, China has built more than 300 marine ranches, bringing economic benefits of over 10 billion yuan per year, with an annual carbon sequestration volume of 190,000 tons, reducing nitrogen by 16,844 tons, phosphorus by 1,684 tons annually, and achieving an average annual ecological benefit of 60.4 billion yuan.

The second one is Offshore wind power. Offshore wind power is an important support for China's current energy transformation and a key force for the development of the marine economy in coastal provinces. By the end of last year, China's cumulative grid-connected offshore wind power capacity reached 36.5 million kilowatts, accounting for nearly half of the global total, ranking first in the world. China's wind power industry chain and supply chain are relatively complete and have international competitiveness. China’s wind power technology leads globally, with international advanced levels in large capacity, long blades, and high towers. China's abundant wind power product spectrum can meet the development needs of various environmental climates worldwide.

The third one is Ocean forecast "Chip" project. A new generation of ocean numerical forecast system with completely independent intellectual property rights has been put into operation. The accuracy and timeliness of disaster warning reports for storm surges, tsunamis, waves and other hazards have reached the world's advanced level.

II、China's Unwavering Defense of its Maritime Rights and Interests on The South China Sea Issue.

China has always been committed to safeguarding maritime peace and tranquility, firmly upholding the maritime order based on international law, and fully participating in the formulation and implementation of maritime rules under the framework of the United Nations. China was one of the earliest signatories and ratifiers of the United Nations Convention on the Law of the Sea (UNCLOS). As a party to the Convention, China attaches great importance to and earnestly implements the Convention.

China has ample historical and legal basis for its territorial sovereignty and maritime rights and interests in the South China Sea. China was the first to discover, name, and develop the islands and related waters of the South China Sea, and was also the first to exercise sovereignty and jurisdiction over them continuously, peacefully, and effectively. China has always adhered to the overall situation of maintaining peace and stability in the South China Sea and has always insisted on resolving territorial sovereignty and maritime rights disputes with neighboring countries through negotiation and consultation. Including the recent incident at Ren'ai Reef, China has never proactively initiated disputes in the South China Sea but will take necessary measures to firmly defend its territorial sovereignty and maritime rights and interests. At the same time, China remains committed to dialogue and consultation to address differences and manage situations.

The South China Sea is currently one of the safest and freest navigation areas in the world. In my two and a half years of work in Greece, I have never heard any Greek shipowners complain to me about encountering obstacles when their ships pass through the South China Sea. China will continue to work with ASEAN countries to comprehensively and effectively implement the Declaration on the Conduct of Parties in the South China Sea (DOC) and actively promote consultations on the Code of Conduct in the South China Sea (COC), jointly maintaining peace and stability in the South China Sea.

China and Greece have always understood and supported each other on issues of mutual concern. On the Eastern Mediterranean issue, as a permanent member of the United Nations Security Council, China has always been committed to maintaining peace and hopes that Greece and Turkey can resolve their differences through dialogue and negotiation. China is pleased to see recent improvements in bilateral relations between Greece and Turkey through dialogue and has always supported this. We hope that Greece will similarly support China's efforts to resolve differences through negotiation on the South China Sea issue.

III、Achievements of China-Greece Maritime Cooperation

China and Greece are ancient maritime nations neighboring the sea, both with long histories of maritime civilization. China is a major shipbuilding and cargo import and export country, while Greece is the world's leading shipping country. Our two countries have a high degree of complementarity in maritime transportation, shipbuilding, port operations and other areas, making maritime cooperation an important bond in tightening China-Greece relations.

The foundation of China-Greece maritime cooperation is solid. As early as 1973, our two countries signed the China-Greece Shipping Agreement. In 2014, we signed a Memorandum of Understanding on Maritime Cooperation. In 2015, we jointly held a series of activities for the China-Greece Year of Maritime Cooperation. The first and second China-Greece Maritime Cooperation Forums were respectively held in Athens and Beijing in 2014 and 2016 . Both China and Greece are signatories to the United Nations Convention on the Law of the Sea (UNCLOS) and have been elected as Category A members of the International Maritime Organization (IMO) multiple times. We have long communicated and cooperated on the formulation and implementation of maritime rules and governance mechanisms within the framework of international organizations such as the United Nations .

In terms of pragmatic cooperation, PPA stands out as a highlight of bilateral maritime cooperation. It has become the flagship project of China-Greece cooperation in jointly construction of BRI. At the same time, it is also a successful example of mutual complementarity, strong cooperation, and mutual benefit, with the achievements of this cooperation increasingly benefiting the people of both countries. Since taking over the operation of PPA, COSCO has achieved excellent economic performance, making it the leading container port in the Mediterranean, the third-largest cruise home port in Europe, and the largest ferry port in Europe. In 2023, PPA handled a total container throughput of 5.1 million TEUs, with a roll-on/roll-off (Ro-Ro) throughput of 320,000 vehicles. The port has accommodated 7,610 cruise ship calls and served 1.48 million passengers. The ferry business has served a cumulative total of 16.15 million passengers and carried 2.88 million vehicles. With the continuous expansion and enhancement of business in various sectors, the company's revenue and total profits have also achieved excellent results, setting historical records for total profits for three consecutive years. At the same time, COSCO has cumulatively paid exceeding one billion euros to the Greek government for concession fees and taxes, increased dividends of listed companies by 12 times, directly created 4,300 jobs, indirectly created 12,000 jobs for Greece, and boosted Greece's GDP by 1.56 percentage points. With the joint efforts of both sides, PPA has greatly enhanced Greece's status as a gateway connecting land and sea and communicating between Europe and Asia.

Exchange and cooperation in the shipping industry between China and Greece are deepening. According to incomplete statistics, since 2000, Greek shipowners have purchased or ordered more than 1,500 vessels from Chinese shipbuilding companies, with a total value exceeding 70 billion US dollars. Just last year, Greek shipowners ordered 162 new ships from China, accounting for about 61% of their total new ship orders for the year. At the same time, more than half of the energy and oil imported by China is transported by Greek fleets. As early as 1986, China Classification Society (CCS) began ship inspection and certification operations in Greece. In 1999, CCS established an office in Athens and participated in the Greek International Maritime Exhibition for the first time, gradually becoming a window for Greek shipowners to understand China and China's shipbuilding industry. During the same period, several Greek shipping companies opened offices in Shanghai, Hong Kong, and other places in China, and exchanges and cooperation in the shipping industry between our two countries have become increasingly frequent. Last April, Greek institutions such as the Hellenic Shipowners Finance Association set up offices in Shanghai and other places.

It can be said that the friendship between China and Greece began with the sea and transcends the sea. In the early days of the founding of the People's Republic of China, Greek shipowners broke through the blockade and delivered urgently needed supplies to China. In the late 20th century and early 21st century, Greece assisted the Chinese government four times in safely evacuating Chinese citizens from areas of conflict or unrest. For decades, the Greek shipping industry has been committed to promoting the development of China-Greece relations and deepening people-to-people friendship. It has sponsored Peking University to establish China's first Greek Studies Center, generously donated during the Wenchuan earthquake, and built multiple Hope Primary Schools. Similarly, when Greece faced debt crises and the impact of the COVID-19 pandemic, China has consistently stood firmly with Greece and provided support to the best of its ability. Witnessed by history, China and Greece have jointly written stories of mutual assistance and shared hardships, reflecting a deep friendship between our two sides.


IV、Prospects of China-Greece Maritime Cooperation

Not long ago, I had the privilege of exchanging views with Mr. Vokos, CEO of the Posidonia International Shipping Exhibition in Greece. He happily informed me that more than 80 Chinese shipping companies have registered to participate in the exhibition this year. The exhibits cover a wider range of fields including ship equipment, ship finance, and maritime services. He is very optimistic about the prospects of maritime cooperation between our  two countries, and I fully agree with him.

I firmly believe that China and Greece can further deepen bilateral cooperation with the ocean as the bond. China is willing to strengthen strategic alignment with Greece, focusing on developing the marine economy, enhancing the level of marine  technological innovation, improving global maritime governance and protecting marine ecological environment. China is willing to strengthen discussions with Greece on cooperation in marine technology, green shipping, disaster prevention and mitigation and etc. . Furthermore, we will further leverage the leading and radiating effects of PPA, better integrate PPA with the Hungary-Serbia Railway, and explore the establishment of an economic and trade cooperation zone relying on PPA to develop it into a regional logistics hub. We will also enhance the role of international maritime exhibitions and group visits to promote cooperation in the shipping industry between China and Greece and gradually expand to the entire industry chain, including manufacturing, design, marketing, transportation, logistics warehousing, finance, insurance and etc..

Not long ago, five Chinese ministries jointly issued the "Action Plan for Green Development of the Shipbuilding Industry (2024-2030)," proposing that by 2025, the international market share of liquefied natural gas (LNG), methanol and other green-powered ships will exceed 50%. Therefore, China's shipbuilding industry is focusing on green and low-carbon transformation. In addition to using LNG as fuel, ships powered by green fuels such as methanol, hydrogen, and ammonia are also under further development. It is believed that there is enormous potential for cooperation between China and Greece in green shipbuilding, including the green retrofitting of existing vessels.

I noticed that Greece announced a revised version of the "National Energy and Climate Plan" at the end of last year, setting a target to increase Greece's renewable energy installed capacity to 23.5 gigawatts by 2030, including 9.5 gigawatts of wind energy (including 1.9 gigawatts of offshore wind power). As mentioned earlier, China has some experience and technology in offshore wind power development. In the future, the two countries can strengthen technological and demand docking to achieve complementary advantages.

Peoples living by the sea understand the inspiration of the ocean best. Just as the sea has tides, the economic development of a country also has ups and downs. Building a modern maritime civilization also requires us to have the courage to ride the waves. I firmly believe that with the continuous friendly cooperation and integration of the two ancient civilizations of China and Greece, maritime cooperation between the two countries will usher in a new and beautiful era. China will always uphold the concept of a maritime community of shared future and work hand in hand with the international community, including Greece, to build a blue, prosperous and beautiful sea shared by all countries.


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