An old China hand shares the world's astonishment over the country's rise

Thirty years ago, Anthony Galsworthy, who had just served a three-year diplomatic posting in Beijing, returned to London and tried to rustle up some interest for a talk about China but could find no takers.

"I offered to give a talk at the Treasury about the Chinese economy, but nobody was particularly interested," Galsworthy recalls.

"Even when I went back (to China) as ambassador in 1997, people were saying, 'Oh yes, the Chinese economy is increasingly important, but the Japanese economy is far more important, and it will never be as important'."

It is hardly surprising that someone as aware of and attached to China as Galsworthy is - he went to Hong Kong to study Chinese in 1967 when he was 22 and a year later was working in Beijing - should be so enthusiastic about the subject, but what is perhaps surprising is his surprise at China's success.

"I'd say China has changed out of recognition. It hardly seems to be the same country.

"The speed of China's economic growth surprised me as it has surprised everybody else. But the fact of it did not, because China has undoubtedly been the largest economy in the world for most of the span of history."

The huge impact on the world of China's growth over the past few decades is unparalleled, he says, and he believes China will again be the world's largest economy before long.

Galsworthy, now 68, was Britain's ambassador to China from 1997 to 2002 following previous postings in the country.

He says he is confident that the British now fully appreciate what he calls China's economic miracle and the relevance it has for their country.

As senior British representative of the Sino-British Joint Liaison Group, Galsworthy played a key role in the handover of Hong Kong, and hails the peaceful and successful way it was achieved.

"The British objective was to preserve the way of life in Hong Kong. If you go back to Hong Kong now, the way of life doesn't seem to have changed much at all, as people's lives are very similar."

During the handover negotiations, Galsworthy had close dealings with the late leader Deng Xiaoping, someone he greatly admires.

"He is characterized by toughness. He never deviated from what he believed. He had a practical, realistic approach to things. His legacy is visible everywhere you look in China."

Galsworthy cites the southern tour that Xi Jinping made last year when he became China's new Communist Party leader. Galsworthy says such a trip was symbolically replicating Deng's famous tour of Shenzhen 30 years earlier that gave fresh impetus to the country's economic reform agenda.

Galsworthy, now an adviser on Chinese affairs to Standard Chartered Bank, says that when Britain deals with China it should show more understanding of the challenges the country faces.

Britain should do more to engage China, particularly as its investment in Britain has grown in recent years.

Last year China's investment in Britain was worth more than $2.3 billion (1.7 billion euros). In 2011 bilateral trade was worth $58.7 billion, and the two are working toward a target of $100 billion in 2015.

"Many Chinese companies that have successfully invested are now very sophisticated, but the newcomers who will be coming in won't be like that," Galsworthy says.

"And that gives more opportunities for those (British service industry) firms that can help Chinese companies build a reputation for being reliable and trustworthy."

Galsworthy says he is confident Sino-British relationship will flourish because openness to foreign investment is inherent to British business culture.

"When I was ambassador we set up conferences in China to encourage inward investment (to Britain), and the rest of the EU countries thought we were crazy. Now they're all doing it. We are a country that has lived on investment overseas. It's enormously important for our economy."

In contrast, Galsworthy says, the US government is more protectionist and fearful of Chinese investment. He cites the US congressional report last year that ruled that two Chinese telecommunications companies, Huawei Technologies and ZTE Corp, posed security risks to the US and should be prevented from making further inroads in the country.

"I think there has been some fairly silly opposition to Chinese investment in the US," Galsworthy says, adding that such fear is unfounded and hinders business growth.

"Chinese investment overseas is not done to sabotage everyone else's economy. What it gives is a huge stake for China in the efficiently running global economy, and the success of our own economies and hence global stability.

"We should feel happy that the Chinese have a great interest in our economic success."

China's contribution to the global economy will become increasingly important in the years ahead, he says.

"China is not only the main driver of world growth, but China is also heavily dependent on the globalization of world trade, so China will have a role to play in maintaining world trade."

But Galsworthy says it is important for China to undertake reform and achieve more sustainable growth.

One example of reform he gives is reducing reliance on exports, which he says is critical to China's sustainable development, and another is encouraging stronger growth of privately owned businesses.

"I think China has to move from being an export-oriented economy to a consumer-oriented economy. I think (China's growth) is bound to slow somewhat. That's natural. You can't have such a rate of growth forever, otherwise you'll grow off the world."

China should play a more prominent political role globally to match its economic prowess, he says, acknowledging that it may still be learning about this new role because the country is changing so quickly.

"It has to be a role that is commensurate with its economic power, but this is a much more difficult road to take than that of its economic growth.

"China traditionally has been more interested in the parts of the world that were immediately accessible to her and immediately affected her. But these days with the globalized world, a crisis anywhere affects us all."

Galsworthy says he is confident about China's new leaders, even if it is too early to draw conclusions. Many strategic directions they have identified are encouraging for China's growth, he says, and he has great hopes for them on reform and modernization.

"Economically, politically and socially, there's a lot to be done. I have a good deal of confidence that the new leader is the man to do it."

Contact the writers at cecily.liu@chinadaily.com.cn and zhangchunyan@chinadaily.com.cn

(China Daily 05/10/2013 page24)