TV7 News
Presented by:
- Liu Wang
- Zhang Jiao
Liu Wang (LW): Welcome to TV7 News. As always, we will provide you with the latest news from China and around the world as well as analysis on every situation. Jiao, tell us what we shall see today.
Zhang Jiao (ZJ): Today we shall interview President Yang Sun-Te in his first interview as President.
Interview with President Yang Sun-Te
LW: Welcome to our TV show Mr. President.
Yang Sun-Te (YS): I am glad to meet you.
LW: My first question has to do with the economy. You are a staunch fiscal conservative and budget hawk and you've promised to minimize the debt and eliminate the deficit. What will be your measures for eliminating the deficit?
YS: Our debt is on normal levels and we have about the same debt as most other nations do. Our main problem is the deficit which I've promised to eliminate and I'll do so. Otherwise the debt may get out of control. In order to achieve this, I will cut public spending. The administration costs of our public sector are almost twice as big as those of most other nations so there is room for further budget cuts. Wages in public sector may also need to be slashed but not much. I would argue about a 6% cut in wages.
LW: I see. Jiao will ask the next question.
ZJ: You've promised to lower our flat tax from the current 15% to 10% and institute negative income tax. When will you lower the taxation? Do you believe it will imbalance state budget?
YS: I will keep my promise. I am not one of those politicians who take back their promises when in office. But tax cuts will take place in the second year of my administration. Firstly, there is a need to balance the budget and eliminate the deficit. When this happens I will gradually lower taxation, first to 12% in the second year of my administration and to 10% in the third year of my administration. I will also institute negative income tax to completely replace state welfare. But, as I've said, in order to do that there must be a balanced budget or the deficit will get completely out of control.
LW: About the IMF, how much funding will China provide? Will it not cause a deficit?
YS: China will of course provide the IMF with funds. We will provide about 0.2, that is almost 1% of our budget. We will increase our funding next season when the deficit is under control. The IMF is an important institution that provides monetary stability and will be a useful tool in overcoming times of economic crisis.
ZJ: Regarding the international situation of China, what is your estimation? You said in an election rally that you would improve the international standing of China. Has this been done?
YS: In only a few months of my administration I have managed to make China a important player in world politics. I have taken a series of initiatives which not only improve the international standing of our nation but also promote peace and stability in the region and foster cooperation. The IMF, whose HQ are in Shanghai and was proposed by China, has proved to be the leading financial institution with most world nations joining it. As I've said, the IMF is important in monetary stability of the world economy. China has also promoted free trade across the region with the creation of the Pacific Free Trade Zone, which a couple of nations, including Australia, have joined. China has signed a free trade deal with Rome too. Last but not least, our UN nomination by so many nations shows that China is regarded highly.
LW: On domestic politics, you've said that you will limit illegal migration.
YS: Indeed. The police will conduct raids and arrest illegal migrants who will be expelled back to their countries as soon as possible. China is an open nation to anyone who wants to migrate, as long as he or she do so legally. The ones who enter the nation undocumented violate the law and should be expelled.
ZJ: Last question: some former Chinese territories have held referendums asking to join the Republic and those have been ruled in favor of the Republic. Will their applications to join us be accepted?
YS: Of course. Chinese unity is our top priority. We will respect their democratic decision and accept them in the Republic.
LW: Thanks for the interview Mr. President.
New territories join the Republic
LW: In other news, Hebei, Inner Mongolia, Gansu and Xinjiang have held referendums in which they voted to join the Republic. Jiao will provide us with more info about the referendums.
ZJ: Those former Chinese territories, which have been independent states since the collapse of the PRC, finally agreed to hold referendums regarding Chinese unity. Surprisingly, the pro-Union vote won not only in Han Chinese majority territories but even in Xinjiang. This can be explained by the fact that Xinjiang is underdeveloped and needs Chinese help to improve it's standard of living. As the President said in his interview, those new territories have been accepted in the Republic.
LW: Xinjiang will also have a special status, right?
ZJ: Indeed. Xinjiang will be an Autonomous Region and have greater control regarding education and cultural policy. This has been decided due to the fact that there is a Muslim majority in the area.