International Watch: Chinese investment helps bankrupt Iceland's resurrection

Times weekly reporter Zhang Zipeng intern Wang Shihuan from Beijing in the global financial crisis, Iceland, with less than 19.4 billion U.S. dollars in debt, was once more than $138.3 billion trillion. Although "state insolvency" would not be a reality, no body had the power to receive a state with independent sovereignty. But theoretically insolvent Iceland is bankrupt.　　Iceland's GDP per capita had previously ranked fourth in the world. Soon after the financial crisis broke out, many banks were taken over and nationalized by the government.　　Iceland's ambassador to China, Gonnarson, said in an interview in May that Iceland's currency had recently stabilized and welcomed foreign investment to Iceland, including the Chinese. As a result of popular discontent, under pressure, Iceland's prime minister, Haarde, announced his ouster this January and dissolved the coalition. The Social Democratic Union and the left-wing Green Movement subsequently formed a transitional government. Iceland became the first government to be toppled by the financial crisis.　　Iceland's new government is also considering whether to join the European Union in response to the economic crisis and long-term development. Iceland's ambassador to China, Gonnarson, said in an interview in May that although it was not clear whether Iceland would join the EU, he believed that cooperation between the two countries would continue to deepen and that a number of new trade agreements were already under discussion.　　In addition, the two countries in the field of geothermal cooperation has also been for many years, he hoped that Iceland's companies and Sinopec cooperation in geothermal technology, can be used in many parts of China.　　Dating 300 years ago: How long has Iceland been in contact with China? Gonnarson: In Icelandic literature, China is often described as a powerful empire, mysterious and distant.　　The first real intercourse between the ice dates back to 17th century, in a 1674 letter, when Christian, the Danish and Icelandic kings, told Emperor Kangxi that the Chinese emperor's management and the greatness of China had been known to the world, even though the most distant Nordic countries had heard it. Because Iceland is a small country, only a limited number of embassies have been set up. For a long time there were only embassies in Europe and the United States. Iceland decided to establish an embassy in Beijing in 1994.　　This is Iceland's first embassy in Asia.　　Times Weekly: What are the trade links between Iceland and China? Gonnarson: We witnessed the growth of trade and investment between the two countries in 15, and many Icelandic companies have established branches in China.　　China's exports to Iceland are growing fast, and Chinese goods are everywhere in Iceland. Every year on New Year's Eve, Icelanders go outdoors to set off fireworks. More than 20 boxes of Chinese-made fireworks bloomed over Reykjavik last year. Huawei and Lenovo also have a high profile in Iceland. An innovative glass curtain wall used by Reykjavik, an Icelandic National Opera House, is being built in Wuhan.　　The hall will be a landmark building in the Icelandic capital.　　Welcome to China Investment Iceland Times weekly: Iceland is one of the countries most affected by the financial crisis, what is the situation now? Gonnarson: Now the whole situation has quickly become clear. The state not only took over the debt, but also took over the assets.　　The value of these assets may grow over time. Now, our pension funds are in place, and there is no need to rely on future taxes.　　Our population is still relatively young and well-educated, the medical field is developing well, and green and renewable energy are plentiful.　　Times Weekly: How does Iceland guarantee the security of other countries, such as China's debt in Iceland? Gonnarson: One of the main problems we face now is the devaluation of Iceland's currency. But now that some monetary policy has been implemented, monetary conditions have been stabilized. We believe that the situation will get better 1.1 points. We also welcome China's investment.　　I believe Iceland will find a way to solve the problem, but we need more time.　　Time Weekly: Iceland is Europe's first recognition of China's market economy status, the EU has not recognized, if Iceland's accession to the EU will affect your cooperation with China? Gonnarson: In the field of trade and economic relations, I am well aware that there is still considerable room for expansion and growth between Iceland and China. Iceland is Europe's first country to recognise China's market economy and the first country to sign free trade agreements with China. From the Icelandic side, we would like to further advance this relationship. Whatever the outcome, our relationship with China will develop together.　　A number of trade agreements are now being negotiated between the two countries.　　Geothermal project cooperation "fiery" times weekly: Iceland's geothermal mining technology The world's first, in this respect, what cooperation between the two countries? Gonnarson: One area in the development of the relationship between the two countries is particularly important and will become more important in the future.　　This is the cooperative development of geothermal energy. Iceland is the premier in this field.　　In Iceland, more than 90% of homes are heated by natural hot water from geothermal hot springs. Iceland has also established the UNU Geothermal programme. Over the past 30 years, about 80 Chinese scientists and administrators have studied the plan.　　Chinese scientists are studying Iceland's geothermal heating system to see how it works in China. Last year Iceland and China held a joint seminar in Tianjin. Scientists from across Asia are gathering in Tianjin to discuss the future of central heating in geothermal cities.　　In Xianyang, the two companies joined together in a plan to build the world's largest heating facility. In addition, in business, Iceland's Geysir green energy company and Sinopec have identified at least 6 projects running in China. There is already a plan to establish a heating facility in Xianyang, Shaanxi, which is progressing well.　　We are also considering extending the project to other cities in China.　　Time Weekly: Will Iceland participate in the Expo next year in Shanghai? Gonnarson: Will attend. The theme of the 2010 Shanghai World Expo is "better City, Better life".　The Icelandic pavilion at the expo will highlight how the use of geothermal energy has made life better for Reykjavik residents.　Times Weekly: What do the two countries do in education exchange? Gonnarson: The two countries have already established a lot of cooperation. For example, in Beijing Foreign Studies University, Iceland has established a professional, and Iceland has established a Confucius Institute. At present, many Icelandic students have come to study in Shanghai and Ningbo in China. Cooperation between the universities of the two countries is developing rapidly.