China’s Ambassador to Estonia Guo Xiaomei: Whether Seen as a 'Cute Panda' or a 'Callous Tiger', China sticks to its principles

To my observation that more people in Estonia are learning the Chinese language – be it graduates majoring in Chinese at Tallinn University or students at some secondary schools that have added Chinese to their foreign language options – China’s Ambassador to Estonia, Guo Xiaomei, responds humbly: “I’m glad to see that. Language always serves as a bridge connecting peoples. When I hear Estonian students and others say ‘Ni hao 你好’ (hello) to me, whether during meetings or even on the street, I truly feel their friendship and kindness,” Guo Xiaomei, who will mark her second anniversary in the position this autumn, told The Baltic Times Magazine before delving into more complicated topics of politics, policies, and beyond.

China has recently unveiled its 15th Five-Year Plan (2026–2030). To begin with, could you briefly outline its main priorities? In what ways does it differ from previous plans?

As a vital institutional arrangement, five-year plans have effectively ensured China’s sustained and stable development.

The 15th Five-Year Plan, which covers 2026 to 2030, is of particular importance. It occupies a pivotal connecting stage in the process toward basically realizing socialist modernization by 2035, a goal set out in the 20th CPC National Congress. It builds on the achievements of the 14th Five-Year Plan and will lay the foundation for the next five-year period, leading to the accomplishment of the long-term strategic goal.
In this sense, the 15th FYP has a distinct historical position of “carrying forward and opening up the future,” with a continued focus on advancing high-quality development.

China has also introduced a new economic strategy as part of this plan, shifting away from rapid growth toward what its leadership describes as “high-quality development.” Why is this shift necessary? Does it signal a deeper transformation – from being primarily the “world’s factory” to becoming a technology-driven economic superpower?

The transition from high-speed growth to high-quality development in China has been well underway for almost a decade. This pragmatic choice is grounded in China’s own development stage and the changing global landscape, with the goal of better meeting the people’s aspirations for a better life. To put it plainly, it’s a shift from “mere availability” to “better quality.”

In this regard, China has been deepening reforms and advancing high-standard opening up, with a strong emphasis on technological innovation and the development of new quality productive forces. In 2025, China broke into the top 10 in the Global Innovation Index for the first time. I believe that upgrading from “made in China” to “smart China” means new opportunities and fresh momentum for the world economy.

China is intensifying its focus on strategic technologies, including artificial intelligence, semiconductors, robotics, renewable energy, hydrogen, nuclear power, biotechnology, and advanced manufacturing. Some experts argue that China is already “years ahead” of the West, including the United States, in certain areas. While such assessments may be difficult to verify, which technologies, particularly in their everyday application, would you say currently give China a distinct advantage?

The logic of China’s development has always been to “run our own affairs well,” not to replace or dominate any other country. China’s story is that of a developing country achieving progress by drawing on the experiences of others and pursuing independent innovation. The goal of its scientific and technological innovation is to improve people’s well-being and to share the benefits with the world. AI, new energy, e-commerce, and e-payment have been widely applied in China and have made people’s everyday lives increasingly convenient.

There are growing concerns that rapid advances in artificial intelligence could lead to large-scale job displacement, creating a surplus of workers across different age groups and potentially fueling social tensions, even unrest. Historically, similar dynamics were observed in the West during the Industrial Revolution in the late 18th and 19th centuries. Do you see parallels today? How is China preparing to manage the potential social consequences of digitalization and automation?

Just as the steam engine replaced manual labor, electricity changed production methods, and computers reshaped workflows, AI is now transforming the content and nature of work. However, I do not believe that AI will necessarily lead to large-scale unemployment. On the contrary, it gives rise to many new business models and promotes industrial upgrading, which in turn may create demand for new skills and new jobs. AI, as a new quality productivity force, represents the trend of human development. The key factor, I believe, lies in how to adjust and adapt.

In this regard, China is taking a coordinated approach. We will better balance all links in production, distribution, circulation, as well as consumption, improve measures tailored to AI development to promote employment and entrepreneurship, avoid widening the income gap and wealth polarization, and thereby ensure that the benefits of technological advancement and industrial upgrading reach all the people.

China’s economy in 2026 presents a mixed picture: strong exports, a rebound in manufacturing, and rapid growth in high-tech sectors, alongside weak consumer demand, declining private and foreign investment, and ongoing challenges in the property sector. What are the main causes of these weaknesses? Does the government have a clear strategy to address them?

2026 is the first year of China's 15th FYP, and the Chinese economy has achieved a solid start, with GDP growing by 5.0% year-on-year in the first quarter. Let’s look at some data relating to the challenges you mentioned, for example, consumption. The contribution of consumption to China’s economic growth has risen from 37% in 2010 to 52% in 2025, with the consumer market exceeding RMB 50 trillion and consumption becoming the primary engine of growth. As for foreign investment, over 70,000 new foreign-invested enterprises were established in 2025, an increase of 19% year-on-year, further demonstrating China's resilience and dynamism.

Challenges will always be present as China continues its economic transformation and structural adjustment; however, the fundamental trend of sustained and stable development will not change. The 15th FYP lays out measures and reforms in numerous sectors to address various challenges, for example, the further implementation of special initiatives to stimulate consumption and adherence to the close integration of investment in physical assets with investment in human capital.

Does China have the leverage to play a tangible role in influencing the course or consequences of the Iran war? What impact has the conflict had on China’s oil imports? Some observers, including The Washington Post, suggest that China could benefit from the resulting global energy disruptions. What is your assessment?

For all regional hotspot issues, China’s position is clear and consistent: we advocate a political resolution through dialogue and consultation. On the Middle East, President Xi Jinping put forward a four-point proposal when he met with the Crown Prince of Abu Dhabi, the United Arab Emirates, this April, emphasizing the principles of peaceful coexistence, respecting sovereignty, safeguarding the authority of international law, and coordinating the development and security of the Gulf states.

Before that, at the end of March, Foreign Minister Wang Yi also called for a Five-Point Initiative together with his Pakistani counterpart, which includes the immediate cessation of hostilities, the start of peace talks, as well as the security of shipping lanes in the Strait of Hormuz.

War has no winners. Global economic growth hinges on world peace and stability. China hopes that all sides will jointly prevent the situation from worsening and stands ready to continue making its due contributions to de-escalation.

Regarding The Washington Post, I have to say that the resilience of China’s energy sector benefits from its green development philosophy and long-term clean energy transition, not from the profits of war.

It has been widely reported that the Chinese company BYD has overtaken Tesla as the world’s leading electric vehicle manufacturer. In your view, where does BYD hold a competitive advantage? Given the European Union’s recent tariffs, reaching up to approximately 35.5% on Chinese electric vehicles, what prospects does BYD have for entering the European market?
I’m not in a position to speak on behalf of BYD. In general, the rapid development of China's electric vehicle (EV) industry is the result of the combined forces of comparative advantages and market dynamics. As for the EU market, I have noticed that despite certain measures of protectionism, market demand remains strong.

Compared to other European countries, the current EV ownership rate in Estonia is still relatively low, and our embassy needs to adapt to the local situation. However, our colleagues in China have widely adopted new energy vehicles.

Some critics argue that in situations such as developments involving Venezuela’s President Nicolás Maduro and the Iran war, China has remained largely an observer of unilateral actions taken by the United States. How would you respond to such criticism? Do you foresee a shift in China’s global posture in the coming years – from “a cute panda” to “a callous tiger”?

Just as I mentioned earlier, China’s position is clear and consistent on all regional hotspot issues: we advocate political resolution through dialogue and consultation. We call upon relevant states to adhere to the purposes and principles of the UN Charter and the rules of international law, resolving disputes through dialogue and consultation rather than the threat or use of force. We support both Venezuela and Iran in safeguarding their sovereignty, security, and territorial integrity, while promoting peace and facilitating talks. Whether “a cute panda” or “a callous tiger,” China is there.

Experts have described 2026 as a potential “inflection point” in EU–China relations. Do you share this assessment? What factors are driving this perception?

China’s position on the EU is consistent. We view the EU as a pole in a multipolar world, an important force underpinning global stability, and a key partner for China in its modernization. However, the EU’s “triple characterization” of China reveals inherent inconsistencies, and in practice we often see the role of partner giving way to that of competitor and rival.

We believe that for China–EU relations to remain steady and sound, it is crucial for the EU to have a correct perception of China. We hope the EU will work with China in the same direction to enhance cooperation, particularly under the current turbulent international circumstances.

Turning to your work in Estonia, could you describe your role as ambassador? What does a typical day look like?

As ambassador, my primary responsibility is to promote mutual understanding and cooperation between the two countries. This is represented through political dialogue, economic and trade cooperation, cultural exchanges, and people-to-people contacts.

Diplomacy is about building bridges. A typical day can be quite varied. It may involve meetings with Estonian officials, engaging with local businesses or academic institutions, or supporting cooperation projects. I speak and also spend time listening – to better understand Estonia’s perspectives and identify areas where our understanding or interests align.

What would you identify as the most notable examples of cooperation between Estonian and Chinese companies?

Bilateral trade is an indispensable field. It continues to grow. In 2025, goods trade reached €1.07 billion, up 9.7% year-on-year, reflecting strong vitality and robust mutual market demand. Agricultural, wood, and mineral products offer great potential for cooperation.

Looking ahead, what gives you optimism in Estonia–China relations, and what challenges remain, particularly in terms of trade volumes?

The aspects that give me optimism include the fact that the two countries share a solid historical basis for friendly relations, there are no direct geopolitical conflicts between us, and the two peoples maintain a positive attitude toward each other.

At the same time, challenges should not be overlooked. There are politicians and institutions in Estonia that hold ideological biases toward China, mistakenly regard China as a threat, and have taken negative actions on China-related issues, particularly on the Taiwan issue, undermining the one-China principle and affecting the sound and steady development of bilateral relations.

Regarding trade, there is room to further strengthen cooperation, that is, to further increase bilateral trade volume and improve the trade structure. We welcome more high-quality Estonian products to access and benefit from the vast Chinese market.

Do you have data on how many Estonian citizens have taken advantage of China’s visa-free policy (in effect until December 31, 2026), particularly in 2025 and the first quarter of this year?

Unfortunately, I do not have data specific to Estonian citizens. However, we have data from the National Immigration Administration, which shows that in 2025, a total of 30.08 million foreign visitors entered China visa-free, accounting for 73.1% of all foreign visitors and representing a year-on-year increase of 49.5%. In the first quarter of 2026, 8.315 million foreign visitors entered China visa-free, accounting for 77.9% of all foreign visitors and representing a year-on-year increase of 29.3%. We warmly welcome Estonian friends to explore China for themselves.

Chinese language studies are available at major Estonian universities, particularly at the University of Tartu and Tallinn University, often within broader Asian studies programs. Have you had the opportunity to engage with students studying Chinese in Estonia?

I’m glad to see that more people in Estonia are learning the Chinese language. I know that the number of graduates majoring in Chinese at Tallinn University has increased year by year over the past three years, and some middle schools have added Chinese to their foreign language options.

Language always serves as a bridge connecting peoples. When I hear Estonian students and others say “Ni hao 你好” (hello) to me, whether during meetings or even on the street, I truly feel their friendship and kindness.