A letter from Mr Maxhun Peka---- the former Ambassador of Albania to the People’s Republic ofChina.

导语：Mr Maxhun Peka Ambassador of the Republic of Albaniato the People’s Republic of China (2009).

Beijing,      /07/ 2009

I would use this opportunity to warmly thank you to invite me to be interviewed by Diplomat Magazine on this year of 60^th anniversary of the founding of the People’s Republic of China  and the establishment of diplomatic relations betweenAlbania and China.

In this occasion, I would like to congratulate the Chinese people for the overall progress have achieved in the past six decades, and in particular for strong and impressive development achieved in the last decades of the opening up.

Albania is situated in the Western part of the Balkan Peninsula, covering an area of 28.748 square kilometers. It is bordered byMontenegroand Kosovo to the North and North East,Macedoniato the East, andGreeceto the South. The immediate western neighbor isItaly, some 82 km across the Adriatic. Major cities include Tirana, the capital, as well as the ports of Durres and Vlora.

Albania enjoys Mediterranean climate, characterized by hot dry summers with bright sunny days, and generally mild winters with abundant rainfall.

The population ofAlbaniais 4.3 millions.

Albanian macroeconomic performance is strong and has been steadily improving since the beginning of this decade. The country has experienced rapid growth which, together with the large amount of remittances, has significantly reduced poverty. Debt is declining andAlbaniais experiencing sustained macroeconomic stability.

Basic Economic Indicators:

• Real GDP growth rate about 5-6%      over the last few years.

• GDP per capita USD 3.256 in 2007.

• Annual Inflation rate 3% in 2008

• FDI (Foreign Direct Investment)      Euro 600 millions in 2008

• Unemployment rate 13,2%.

• High export growth rate of 27% in      2007 compared to 2006.

Albanian applies a liberal trade regime. Foreign Trade has been liberalized since 1990 and follows guidelines set by the EU (European Union).Albaniahas signed an Interim Agreement with EU (European Community) and Free Trade agreements with most EU member countries.Albaniais an full-member of NATO Alliance, and  hope soon to be associated member of EU.

For the year 2007 the trade volume (export + import) reached 5,3 billion USD, of which the export volume was approx. 1 billion USD.

EU remainsAlbania’s the main trade partner with 83% of exports and 63% of imports.ItalyandGreecealone account for 49% of the total imports and 83% of total exports.

Structure of exports: Textile and footwear products, mineral products (chrome ore, cooper and steel), oil and oil products, base metals, mechanic and electric machinery, vegetable products and prepared food, beverages, tobacco and medicinal plants. Mineral products and base metals’ exports were growing very fast. The main destinations of the Albanian mineral exports areChina(about 32% of the total mineral exports),SwedenandMacedonia.

China is the 4^th destination country for Albanian exports.

Structure of imports: Electrical energy, mineral products, mechanical and electrical equipments, base metals, textile products, chemicals, prepared food and beverages, vehicles, vegetable products, stone and plastic.

China is an important import partner forAlbaniaand ranks the 5^th.

In the trade ofAlbaniawithChinaboth exports and imports have noted considerable increase (USD 243 Million in 2007). The trade deficit is valued at 75% relative to the total trade flows. Exports toChinaare mainly represented from mineral products, where iron ore accounts for 99% of the total exports to the country.

 Why invest inAlbania?

Our domestic economy & exports are expanding

Our GDP and export growth rates were the fastest growing in South East Europe from 1997 to 2004.

Low inflation rate
Consistent low annual inflation rates in recent years have shown thatAlbaniaprovides the economic stability that gives investors the confidence to invest.

Established trading with the EU
Almost 90% ofAlbania’s exports are designated for EU markets, and this export pattern is an important predictor of future growth.

Gateway to the Balkans Free Trade Area
Investors can manufacture inAlbaniafor export to the 50 million-strong Balkan market as well as throughout the European Union.

Site availability from production facilities to high quality office space.

Total labor costs are lower than comparable countries

Adaptable and flexible skilled labor force
Albania’s working population has a median age that is young by European standards, just 29 years.

Extensive language skills
Most Albanians are skilled in Italian and Greek, thanks to the influence and vicinity of both countries. English is common among the young generation, followed by French and German.

Investment opportunities through privatization

The government is reviewing its privatization strategy and anticipates that privatization will represent an important source of investment as well as an opportunity to transform some key strategic sectors of the Albanian economy. Insurance company INSIG and Albanian Power Corporation KESH are now in the privatization process. A new law on concessions has recently been passed with support from the World Bank and is designed to stimulate the development of key sections of the country’s infrastructure and public services.

 In time of global crisis, many investors are taking advantage of the incentives set forth by the Albanian government. Such reforms achieved in the last 3 years are as follow:

• Shortening the time needed for      registration of a new business

• Simplification of licensing      procedures

• Initiation of e-tax and e-public      procurement

• Reduction of the fiscal burden:      social corporate tax 10%, VAT from 20% to 17%.

• Reduction of health and social      contribution from 20% to 15%.

• Free repatriation of profits

• Foreign companies are allowed      100% ownership inAlbania.

 Three big Chinese companies are successful with important projects inAlbania:

• CBMI / Sinoma International in Tangshan,      construction of cement factories

• Huawei Technologies,      Telecommunication

• ZTE Corporation,      Telecommunication

 There are many excellent opportunities for investment in several Albanian strategic sectors: Energy, Mining industry and natural resources, Infrastructure and Tourism.

 During my stay in Beijing, more than three years, I am witness of the strengthening and deepening of the mutually beneficial cooperation in all areas betweenAlbaniaandChina. We exchanged many delegations of both sides and they have witnessed close traditional friendly relations between our two peoples.

Only some months ago, Prime Minister of Albania H.E.Mr. Sali Berisha paid an official visit to the People’s Republic ofChina. The two sides commended the fruitful achievements in mutually beneficial cooperation in all areas between the two countries since the establishment of diplomatic relations, 60 years ago, and emphasized thatAlbania-Chinatraditional friendship is a valuable asset created by the two peoples and a solid foundation for further growth of the bilateral ties. The  two sides agreed to conduct mutually beneficial cooperation of greater strategic significance and promote the bilateral relations in all-round way betweenAlbaniaandChina.

Albaniaand its people have friendly and warm feelings for the People’s Republic ofChinaand its people.Albaniaviews the development and the progress that the People’s Republic ofChinais making as a tremendous contribution of Chinese not only forChinaitself, but to the world at large and its friends as well.

China and Albania have made a long and exciting march in their new history, together for these past sixty years, we have shared biter moments in hard times of renewal and understanding in times of progress and let us wish and work together that the traditional relations between our countries prosper even further, and wish People’s Republic of China a long and ever lasting prosperity.

          Maxhun Peka

Ambassador of the Republic of Albania

to the People’s Republic ofChina.