Issue link: https://maltatoday.uberflip.com/i/181770
25 Opinion maltatoday, SUNDAY, 29 SEPTEMBER 2013 it! Carmen Sammut Malta and the soft claws of the Chinese tiger I much as possible. No doubt. But it is that inner ambition and that drive which comes from within which defines the follower versus the leader, the employee versus the entrepreneur. Marlene Mizzi is a Member of the European Parliament So the question has to be asked: what is the new government planning to do to keep up with the success of Gonzi's government in tourism? government's success in tourism? To date, the new government has kept mum about its tourism vision. We CAN and MUST do better than that. Stefano Mallia is a Nationalist candidate in the forthcoming European Parliamentary elections t doesn't matter whether a cat is white or black, as long as it catches mice, declared Deng Xiaoping, the Chinese leader who modernised his country. Deng's pragmatism led to a mix of two systems: a Chinese communist heart that pumps into the arteries of capitalism. As soon as the Cold War ended, China emerged as a global economic giant. The cat turned into a tiger and it dispelled momentary illusions of a 'unipolar' world dominated by the United States. China is now the owner of more than a trillion of the US Federal debt, which amounts to $3,500 per American. It is also the second most important market for Europe after the United States, Europe being China's largest trading partner. In their regular disputes, we often hear cries of unfair trade practices, as both sides take protective measures. This year the European Union and China clashed over solar panels, and relations between them deteriorated. Many feared a dreaded trade war – as Europeans struggled with the economic crisis they feared Chinese retaliation. The Chinese can afford to play hard, even though they often come wearing a smile. In the West, countless scholars have assessed the rise of the so-called Chinese 'soft power', a strategy aimed to win the hearts and minds of international publics. Whereas in the past China employed futile ideological rhetoric to defend its political system and its human rights track record, in recent years it has tended to promote itself as an alternative model to the West. Pollsters repeatedly find that public perceptions of China in Africa and Latin America are highly positive. Much has been said on the way China asserted itself in sub-Saharan Africa, when the rest of the world was turning its back. They gave millions in agricultural and development aid and supported African SME development, even though the relationship with many African countries was extractive in nature (and many criticise the poor quality of some Chinese infrastructural and construction projects in this continent). The Chinese also asserted themselves in Latin America. In 2012 alone, Chinese trade with Latin America increased by 8%, and foreign investment and active lending are still growing in Brazil, Chile, Peru and Uruguay. Chinese finance is deemed to be more in tune with Latin American needs, as opposed to cautious Western banks, which impose unpalatable conditions and tend to be more intrusive. As a result, countries seeking swifter and more efficient solutions often resort to Chinese overseas loans and investments. In the last decade China acquired assets in over 120 countries. Malta's €200 million deal This context must be considered in our assessment of Malta's €200 million Beijing deal. As expected, domestic responses to it have been coloured by parochial partisan politics. The government framed the deal within the perspective of Confucian values of loyalty; it suggested that the deal came out of respect for old relations established by Dom Mintoff, who befriended isolated Maoist China in the early 1970s. It is often hinted that these values drive Chinese goodwill, no matter the smallness and limited influence of a country like ours in world affairs. Whichever way you look at it, a €200 million injection into the energy sector is a welcome boost to the Maltese islands, as confirmed by credit rating agencies. The moment Joseph Muscat clinched this deal, government clearly managed to wow its supporters. The prime minister strengthened his image as a negotiator and as a player on the world stage. He appeared to be one step closer to fulfilling Labour's most ambitious electoral pledges, which revolve around energy. Yet the devil is in the details, and the details are not yet open for public scrutiny. Government opted to disclose the specifics only when Parliament reconvenes after the summer. This left much room for speculation and allowed time for some of the opposition's criticism to stick. The opposition applied a four-pronged approach to deflate Prime Minister's Muscat's moment of glory. First, it attacked the surprise element. It alleged there was something rather fishy about this sudden agreement when there were no prior international calls for an expression of interest. It stated that in spite of its deep troubles, other global players might wish to acquire a share in debt-ridden Enemalta. Some opinion-leaders chose to sing from this same hymn sheet. Media reports about the role of the energy minister's Shanghaibased Chinese wife may have effectively added an aura of mistrust. On the street people are talking, irrespective of OPM assurances of her excellent credentials. While a discussion of the role of ministerial spouses merits another article, in this case the minister, who is politically responsible for Malta Enterprise, declared her appointment as being "transparent" but then revealed he had no idea how she had been recruited. Moreover, sources claim that this envoy's appointment was never discussed at board level. These stories require some kind of damage limitation from the government's side. The second line of attack from the opposition revolves around the impact of this deal on our relationship with our EU partners. Malta appears to be supporting the Chinese in their dispute on solar panels with the EU. While some European bureaucrats will definitely raise an eyebrow, the fact is that other Europeans still scramble to attract Chinese investment in sectors like infrastructure, utilities and mining. As the prime minister has pointed out to his critics, last year the Chinese paid some €600 million for a 10% share of London Heathrow airport. Most countries do what suits them best. Thirdly, the PN is framing the deal differently, not as an investment but as a shrouded privatisation of a vital entity. While government still needs to explain the Chinese role in Enemalta, this criticism is a strange case of the pot calling the kettle black. The opposition itself remains a great supporter of privatisation. Moreover it has to answer for its own track record of controversial past sell-offs, or rather sell-outs, of profitable assets. Fourthly, there were concerns about Malta's energy security. While energy security is a vital concern, the criticism sounded rather hollow after decades during which our energy supply remained dependent on a museum-piece powerhouse and at the mercy of some corrupt players. Moreover, dependence on a subsea interconnector with Sicily was not opposed by the critics of the Beijing deal. As the debate continues, we can spend endless time navel-gazing. We do hope however that this bilateral agreement was motivated by pragmatism and that it will have positive outcomes. In a world driven by selfish interests we also hope that both sides equally stand to gain. On top of black-andwhite, partisan arguments, if we want to keep afloat, we should let our cat out to chase the mice. Carmen Sammut is a media specialist and the chairperson of Labour Party think-tank Ideat READ MORE EU-China trade 'too big to fail' http://tinyurl.com/nbfwzlx