February 11, 2001
Ottawa, Ontario

As part of the Team Canada mission to China, Prime Minister Jean Chrétien today announced the signing of three agreements between Canada and China which will enhance bilateral cooperation in a number of important social, environmental and economic areas.

"Since Canada and China established diplomatic relations over 30 years ago, our two countries have built a strong and enduring relationship that goes far beyond business links," said the Prime Minister. "The agreements signed today broaden cooperation between Canada and China in such important areas as climate change, energy, legal reform and education."

The Memorandum of Understanding on Energy Cooperation sets the stage for expanded energy policy discussions and bilateral cooperation to enhance technology transfer, research, investment and trade in advanced energy technologies. The agreement was signed by International Trade Minister Pierre Pettigrew and the State Development Planning Commission Executive Vice-Chairman, Wang Chunzhen.

A Letter of Intent on Canada-China Development Cooperation Projects establishes eight projects to promote cooperation on climate change, legal reform, China’s accession to the World Trade Organization, as well as the development of Western China through initiatives such as distance education and employment programs. The projects will be carried out by the Canadian International Development Agency.The document was signed by International Trade Minister Pierre Pettigrew and the Minister of Foreign Trade and Economic Cooperation, Shi Guangsheng.

The renewal of the Memorandum of Understanding on the Canada-China Scholar’s Exchange Program, signed by International Trade Minister Pierre Pettigrew and the Minister of Education, Chen Zhili, provides opportunities for Canadian and Chinese scholars to do research in the partner country in the humanities, social and natural sciences.

The Prime Minister also noted that he and Premier Zhu Rongji had received a

Report Card on Environmental Cooperation, as part of the Framework for Cooperation on Environment. The Report Card focuses on the achievements in bilateral environmental cooperation since the signing of the Framework in 1998 in such areas as the use of environmentally-friendly technologies and sustainable resource development.

The Prime Minister and Premier Zhu also received a report from the Summit of University Presidents, which outlines avenues for future collaboration between Canadian and Chinese universities.

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PMO Press Office: (613) 957-5555

The signing of the Memorandum of Understanding (MOU) between Natural Resources Canada (NRCan)and the Chinese State Development Planning Commission begins a new era in energy-related cooperation between the Governments of Canada and China. The MOU will lead to (SDPC)signeda Memorandum of Understanding (MOU) whichthe establishment of a Canada/China Joint Working Group on Energy Cooperation which is scheduled to meet once a year. As a forum for exchanges on a wide range of energy-policy issues, it will explore ways of promoting a deeper mutual understanding of the energy situations and frameworks in each country, and of expanding cooperation in the following areas:

- Energy policies: with an emphasis on enhancing bilateral energy trade and investment;

- Energy efficiency: to discuss policies and programs to promote energy efficiency;

- Nuclear energy: to expand cooperation in nuclear research and development (R&D) in such areas as spent fuel management, storage and disposal (in accordance with the 1994 agreement between Canada and China for Cooperation in the Peaceful Uses of Nuclear Energy);

- New and renewable energy: to explore opportunities to enhance technology transfer, investment and trade in new and renewable energy technologies and processes;

- Energy research and development: to explore opportunities to enhance cooperation in non-nuclear energy research and development; and

- Regional Development: to explore how Canada-China cooperation can be extended to include China's western regions.

2) LETTER OF INTENT ON CANADA-CHINA DEVELOPMENT COOPERATION PROJECTS

The Letter of Intent covers eight projects in the areas of environment and climate change, legal reform, poverty reduction in Western China and WTO membership.

Canada and China have enjoyed a strong bilateral relationship in environmental cooperation for a number of years. Initiatives funded by the Canadian International Development Agency (CIDA), such as the China Council for International Co-operation on Environment and Development and projects in cleaner production methods and environmental management for small and medium-sized enterprises have contributed to raising awareness of environmental issues in government, industry and the public, as well as increasing China's capacity to integrate environmental considerations into economic development.

CIDA and the Ministry of Foreign Trade and Economic Cooperation have today agreed to carry out two projects which open new areas of collaboration which will support the objectives of the United Nations Framework Convention on Climate Change and China's effort to address this global issue. The new projects are to be funded by the Canada Climate Change Development Fund.

As the first-ever bilateral initiative of any country with China in the field of global climate change, the project will help enhance China's capacity in:

– the Clean Development Mechanism;

-- the preparation of national status reports on greenhouse gas emissions;

– awareness and outreach to key decision-makers, industries, non-governmental organizations and the general public; and

– research on impacts and adaptation.

The objective of the project is to transfer Canadian technologies that China needs to exploit coal-bed methane, a much cleaner source of energy which, if not utilized, becomes a potent greenhouse gas causing global climate change. Specific activities will include an inventory of suitable coal-beds, a detailed site selection process, micro-pilot and large-scale tests as well as evaluation and training. The project will support China’s efforts to address global climate change by enhancing carbon dioxide sequestration activities in the country, while also helping improve air quality in regions using this new source of cleaner fuel.

CIDA and the Ministry of Foreign Trade and Economic Cooperation signed a letter of intent to carry out two projects which build on existing cooperation in the areas of legal aid services and institutional reforms in the criminal justice system.

The project will build on the past few years of cooperation, which has contributed to the initial implementation of a regulatory framework for legal aid services and to the emergence of legal aid centres throughout the country. The project will focus on further developing and integrating a legal aid and legal services system, providing training and development for legal sector workers, and increasing public awareness and information. Activities will include enactment and implementation of legislation, development of model legal aid centres, and training of trainers for staff who provide legal aid or other legal services. It is expected that enhanced access to legal services will help marginalized groups, including women and the poor, to exercise their rights more fully, including their right to a sustainable livelihood. The project will be implemented in collaboration with the Ministry of Justice of China.

In the field of criminal justice, Canada has been cooperating with various Chinese partners for some years and has contributed, among others, to changes in the criminal procedure law and to a growing awareness of UN standards for criminal justice. To further promote progress in the criminal justice system, a new project will now involve the Supreme People’s Procuratorate (SPP), the body responsible for prosecution. The project will support reforms within the SPP, with a view to implementing "due process" in the criminal prosecution system and better protecting citizens’ rights as well as the rights of the accused.

These new agreements are part of ongoing efforts by Canadians -- government agencies, academic institutions, NGOs -- to cooperate with Chinese partners on the rule of law and human rights. In addition to projects mentioned above in criminal justice reform and the extension of legal aid services, CIDA supports numerous other projects, such as the training of judges, the protection of women’s rights, and the development of civil society. Canadian organizations also cooperate with China in two separate initiatives to facilitate the ratification of the two main UN Covenants on Human Rights.

In September 1999, the Government of China announced its "Western Development Strategy", to give greater emphasis to development efforts in this region (Gansu, Guangxi, Guizhou, Inner Mongolia, Ningxia, Qinghai, Shaanxi, Sichuan, Tibet, Xinjiang, Yunnan and Chongqing) which is home to the largest portion of China's rural poor. The new policy aims to channel investments from the Chinese government, international institutions and the private sector to address Western China’s extensive development needs in areas such as infrastructure, environmental management and education. The role Canadian firms can play in this development drive is an important aspect of the Team Canada 2001 Trade Mission.

With an overriding objective of poverty reduction, the CIDA-funded Canada-China bilateral development co-operation program has been engaged in the western regions since the mid-1980s. CIDA and the Ministry of Foreign Trade and Economic Cooperation today signed a letter of intent to carry out three new projects relating to China’s Western Development and Poverty Reduction plans:

The goal of this project is to improve the quality, relevance of and access to basic education in the poor western provinces by strengthening the teacher-training system in Ningxia, Sichuan and Xinjiang using distance-learning technologies on a pilot basis. Special attention will be given to materials that are relevant to women and ethnic minority teachers.

Within the broader context of support to economic reforms and restructuring, this project will specifically address the situation of laid-off workers, particularly women, and unemployment in urban areas. It will aim to stimulate economic growth, create employment and reduce poverty, particularly through the development of small and medium enterprises, the formulation of labour adjustment policies, and the promotion of gender equality in the labour market.

This project will promote the economic development of poor western provinces by strengthening the capability of China’s national and provincial transportation authorities to plan road development to meet the needs of the poorest, while also strengthening systems and standards for road safety engineering and environmental protection.

CIDA and the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) signed a letter of intent to develop a project to assist the Government of China to manage the changes that will accompany China’s accession to the World Trade Organization. The project will support training and joint work by teams of Chinese and Canadian experts on urgent questions faced by key Chinese government agencies in implementing the reforms required by WTO, with special attention to the needs of people who may be adversely affected by these changes (such as laid-off workers and farmers). The project will be managed by CIDA and MOFTEC and complements existing projects which are providing advice to Chinese decision-makers on WTO-related changes in diverse areas such regulation of e-commerce, automotive-industry policy, taxation policies, fisheries regulations, enterprise management and agricultural subsidies.

China's eventual WTO accession is likely to broaden and deepen the reform process. Adjustments will be required in China's policies and legal/regulatory framework to ensure coherence with the WTO framework. Chinese enterprises, in particular, will have to develop new capacities to adapt to a more competitive, more transparent and rules-based environment. At the same time, policies and programs will have to be designed to ensure that the unavoidable shocks of transition are minimized, and also to ensure social protection and new opportunities for those workers and farmers likely to be most affected in the transition period.

For Canada, Chinese membership in WTO will open new markets for Canadian goods and services in specific sectors (such as telecom, agriculture and financial services) while also strengthening the rule of law generally. WTO membership will also mark an important step in China’s development as a fully-participating member of the international community.

The signing of the Memorandum of Understanding (MOU) on the Canada-China Scholars Exchange Program (CCSEP) renews and expands upon the 1994 MOU for this program which celebrated its 25th anniversary in 1998. The program, funded and managed by Canada’s Department of Foreign Affairs and International Trade and China’s Ministry of Education, provides opportunities for Chinese and Canadian scholars to spend up to twelve months in each others’ countries to pursue research in the humanities, social or natural sciences; more than 600 scholars have participated over the years. Canada and China have a long and rich experience of academic exchanges, beginning with CCSEP in 1973. In addition to these programs, Canadian educational institutions have been active in establishing partnerships and marketing their programs in China.

As part of the Team Canada mission, a summit of over thirty Canadian and Chinese university presidents took place in Beijing on February 11. The university presidents discussed new trends in research and educational application of information technology and outlined new avenues for academic exchanges.

In 1998, Prime Minister Chrétien and Premier Zhu Rongji witnessed the signing of a Framework Statement for Cooperation on Environment between Canada and China. Pursuant to this Framework, a "Report Card" on cooperation was submitted officially today to the two leaders as part of their bilateral meeting. The Report focuses on the period since the signing of the Framework in 1998, against a history of achievements in bilateral cooperation through which China has:

- increased its ability to integrate environmental considerations into economic development;

- increased the sustainable use of resources through better planning and management;

-introduced environmentally friendly technologies in industry and reduced the consumption of resources and the emission of pollutants;

-increased the awareness of environmental issues in government, industry and public;

-improved monitoring and prediction of environmental conditions; and,

Under the Framework Statement, the two countries have also established the Canada-China Joint Committee on Environment Cooperation, through which representatives have discussed global environmental trends and challenges such as climate change and look ahead to future bilateral cooperative efforts.