Library:The governance of China/Chapter 15: Multilateral Relations

Chapter 15: Multilateral Relations, Xi Jinping: The Governance of China, Volume I.

Work Hand in Hand for Common Development

March 27, 2013
A keynote speech at the Fifth BRICS Leaders Meeting, Durban, South Africa.

Your Excellency President Jacob Zuma,
Your Excellency President Dilma Rousseff,
Your Excellency President Vladimir Putin,
Your Excellency Prime Minister Manmohan Singh,
Ladies and gentlemen,

It gives me great pleasure to come back to South Africa, the Rainbow Nation, after my last visit more than two years ago. I am deeply impressed by the warm hospitality of the South African people and their strong support for BRICS cooperation. I wish to extend my heartfelt thanks to you, President Zuma, and the South African government for the thoughtful arrangements you have made for the meeting.

As an old Chinese saying goes, "Nothing, not even mountains and seas, can separate people with common goals and ideals." The five countries from four continents are gathering here for the great goal of fostering partnership for common development and the noble cause of promoting democracy in international relations, and advancing the peace and development of mankind. To pursue peace, development and mutually beneficial cooperation is our common aspiration and responsibility.

We should firmly uphold international fairness and justice, and world peace and stability. The world today is not peaceful, continually facing new global threats and challenges. The BRICS countries love and cherish peace, and we share the aspiration of lasting peace in the world, a peaceful and stable social environment for all countries and a decent life for all peoples.

No matter how international situations may unfold, we should stay committed to pursuing peaceful development and mutually beneficial cooperation. What we need is peace and cooperation, not war and confrontation. While pursuing our own interests, we should also accommodate the legitimate concerns of other countries.

No matter how the international setup may evolve, we should stay committed to the principles of equality, democracy and inclusiveness. We should respect the right of all countries to independently choose their social systems and development paths and the diversity of civilizations. Countries, irrespective of their size, strength and level of development, are all equal members of the international community; the internal affairs of a country should be handled by its own people, and international affairs should be managed by all countries through consultation.

No matter how the reform of the global governance system may proceed, we should take an active and constructive part in the process of making the international order truly just and equitable, and thus provide institutional safeguards for world peace and stability.

We should vigorously promote a global development partnership and work for the common prosperity of all countries. A single tree does not make a forest. In this era of continuing economic globalization, we BRICS countries should not just seek our own development, but also work for the common development of all countries.

We should run our own affairs well by expanding our economy and improving the people's lives, and create new sources of growth for the world economy. We should encourage all countries to strengthen coordination of macro-economic policies, reform the international monetary and financial systems, promote, liberalize, and facilitate trade and investment, and bolster the momentum of global economic growth.

We should work together on setting the international development agenda, make full use of the productivity and material resources accumulated by mankind, achieve the UN Millennium Development Goals, narrow the North-South gap in development, and make global development more balanced. The theme of today's meeting, "Partnership for Development, Integration and Industrialization," is not only the development goal of the BRICS countries, but also an important area of cooperation between the BRICS countries and the African countries.

We should forge a strong bond among the BRICS countries through building this partnership, advance our cooperation in economy and trade, finance, infrastructure, personnel interflow and other fields, and move towards the goal of integrated markets, multi-tiered financial, network, land, air and sea links, and greater cultural exchanges.

We should jointly support Africa's pursuit of stronger growth, accelerated integration, and industrialization, and help Africa become a new growth pole in the world economy.

We should reinforce mutually beneficial cooperation and outcomes. We still have a long way to go before we can deliver a decent life to the three billion people of our countries and fully meet their aspirations for a better life. To accomplish this task, we should rely first and foremost on our own efforts, but we also need closer cooperation among the BRICS countries.

We should continue to enhance political trust among our five countries and friendship among our peoples, do more to share experiences in governance, and jointly promote industrialization, IT application, urbanization and agricultural modernization. We should follow the law governing development, foster new ideas and meet difficulties head on in pursuing development. We should continue to step up coordination and cooperation under the frameworks of the United Nations, the G20 and international economic and financial institutions to uphold our common interests.

We should translate our political consensus into concrete actions, actively pursue such initiatives as a BRICS development bank and contingent reserve arrangement, accelerate practical cooperation in all fields, consolidate the economic and social foundation of cooperation, and present a positive image of the BRICS countries pursuing both domestic development and international cooperation.

It is only five years since the BRICS mechanism was launched, and it is still at its initial stage of development. We should run our own affairs well, strengthen the cooperative partnership among BRICS countries and improve institutional building for BRICS cooperation. Our cause will surely thrive as long as we keep firm confidence in our own development paths and in cooperation among the BRICS countries, do not flinch from facing risks and are not misled by any distraction.

Dear colleagues,

I know you all have a keen interest in China's future development. Looking ahead, China will work towards two goals: First, we will double China's 2010 GDP and per capita income of urban and rural residents by 2020 and bring about a moderately prosperous society in all respects that benefits our population of more than one billion. Second, we will build China into a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious by 2049, when we mark the centenary of the founding of the People's Republic of China.

To achieve these two goals, we will continue to make development our top priority and economic growth our central task, and promote economic and social development. We will put the people's interests first, strive for all-round progress in the economic, political, cultural, social and ecological fields, coordinate all aspects of our modernization drive, and make China a beautiful country.

Our development endeavor is an open one, as we will remain committed to the basic state policy of opening to the outside world and the mutually beneficial strategy of opening up and further liberalize our economy.

Our development endeavor is a cooperative one, as we will work for common development, carry out economic and technological cooperation with all other countries on the basis of equality and mutual benefit, and promote our own development and the common development of all countries through cooperation.

To achieve these two goals, we need a sound external environment. China will continue to pursue an independent foreign policy of peace and align the interests of the Chinese people with those of the peoples of all other countries. We will work with other countries to strengthen macro-economic policy coordination, oppose protectionism, improve global economic governance and boost global growth.

Dear colleagues,

Enhancing cooperation with other BRICS countries has always been a diplomatic priority for China. Our country will continue to strengthen cooperation with the other BRICS countries, improve the structure, and make it more productive. The result will be more robust growth for all concerned. This will deliver real gains to people of all countries and make a greater contribution to world peace and development.

Thank you!

A Better Future for Asia and the World

April 7, 2013
A keynote speech at the Boao Forum for Asia Annual Conference 2013.

Your Excellencies, Heads of State and Government, Speakers of Parliament, Heads of International Organizations, Ministers,
Members of the Board of Directors of the Boao Forum for Asia, Distinguished guests,
Ladies and gentlemen,
Dear friends,

In this balmy season of clear skies and warm, coconut-scented breezes, I am so glad to meet all of you at the Boao Forum for Asia Annual Conference 2013 here in Hainan, a picturesque island embraced by the vast ocean.

Let me begin by extending, on behalf of the Chinese government and people and also in my own name, a heartfelt welcome to you and warm congratulations on the opening of the Annual Conference of the Boao Forum.

In the 12 years since its founding, the Boao Forum for Asia has become an important forum with growing global influence. In Chinese culture, 12 years form a zodiacal cycle. In this sense, the Boao Forum has reached a new starting point, and I hope it will scale even greater heights.

The theme of the current annual conference, "Asia Seeking Development for All: Restructuring, Responsibility and Cooperation," is a highly relevant one. I hope you will engage in in-depth discussions on promoting development in Asia and beyond, thus contributing, with your vision and commitment, to peace, stability and prosperity in Asia and the world at large.

The world today is going through profound and complex changes. Countries have become increasingly inter-connected and inter-dependent. Several billion people in a large number of developing countries are embracing modernization. The trend of the times – peace, development, cooperation and mutual benefit – is gaining momentum.

On the other hand, our world is far from peaceful. Development remains a major challenge; the global economy has entered a period of profound readjustment, and recovery remains elusive. The international financial sector is fraught with risks, protectionism in various forms is on the rise, countries still face many difficulties in adjusting their economic structure, and the global governance mechanisms call for improvement. It remains an uphill battle for all countries to achieve common development.

Asia is one of the most dynamic and most promising regions in the world, and its development is closely connected with that of other continents. Asian countries have energetically explored development paths suited to their national conditions and greatly boosted global development through their own. Working side by side with the rest of the world in a time of difficulty to tackle the international financial crisis, Asia has emerged as a major engine driving world economic recovery and growth. In recent years, Asia has contributed more than 50 percent of global growth, instilling much-needed confidence into the rest of the world. What is more, Asia's cooperation with other groupings at regional and sub-regional levels has great vitality and promising prospects.

But we should also be keenly aware that Asia still faces many difficulties and challenges in boosting both its own development and joint development with other regions. The road ahead is neither smooth nor straight.

Asia needs to transform and upgrade its development model in keeping with the trend of the times. Sustainable development is still of paramount importance to Asia, because this holds the key to solving major problems and difficulties. It is important that we should shift the growth model, adjust the economic structure, make development more cost-effective and improve the quality of life.

We should make concerted efforts to resolve major difficulties to ensure stability in Asia, which now faces new challenges, as new flashpoints keep emerging, and both traditional and non-traditional security threats exist. Asian countries should increase mutual trust and work together to ensure durable peace and stability in our region.

We need to build on past success and promote cooperation in Asia. There are many mechanisms and initiatives for enhancing cooperation in Asia, and a lot of ideas are being explored by various parties. What we need to do is to enhance mutual understanding, build consensus and enrich cooperation so as to strike a balance among the interests of the various stakeholders and build mechanisms that bring benefits to us all.

Ladies and gentlemen,
Dear friends,

Mankind has only one earth, and it is home to all countries. Common development – the very foundation of sustainable development – meets the long-term and fundamental interests of all the people in the world. As members of the same global village, we should foster a sense of community of shared future, follow the trend of the times, keep to the right direction, stick together in time of difficulty and ensure that development in Asia and the rest of the world reaches new heights.

First, we should boldly break new ground and create an irresistible impetus for common development.

Over the years, many countries and regions have developed good practices in maintaining stability and promoting growth. We should continue such practices. However, nothing in the world remains constant, and, as a Chinese saying goes, "A wise man changes his way as circumstances change; a knowledgeable person alters his means as times evolve." We should abandon our outdated mindsets, break away from the old confines that fetter development, and unleash all potentials for development. We should redouble our efforts to shift the growth model and adjust the economic structure, raise the quality of development and improve the quality of life. We should steadily reform the international economic and financial systems, improve global governance mechanisms, and ensure sound and stable global economic growth. Asia, with its long-standing capacity for adjusting to change, should ride on the waves of the times, and make changes in Asia and the development of the world reinforce and benefit each other.

Second, we should work together to uphold peace so as to provide a secure environment for common development.

Peace is the ever-lasting wish of our people. Peace, like air and sunshine, is hardly noticed when people enjoy it. But none of us can live without it. Without peace, development is out of the question. Countries, big or small, strong or weak, rich or poor, should all contribute their share to maintaining and enhancing peace.

Rather than undermining each other's efforts, we should complement each other and work for joint progress. The international community should champion the vision of comprehensive, common and cooperative security so as to turn our global village into one big platform for common development rather than an arena where gladiators fight each other. No one should be allowed to cause chaos in any region or even the whole world for selfish gains.

With growing interaction among countries, problems are inevitable. What is important is that countries should resolve differences through dialogue, consultation and peaceful negotiation in the broader interest of a sound growth of their relations.

Third, we should boost cooperation as an effective vehicle for enhancing common development.

As we often say in China, a single flower does not make spring, while one hundred flowers in full blossom bring spring to the garden. All countries are closely linked and share converging interests. They should both pool and share their strength. While pursuing its own interests, a country should respect the legitimate concerns of others. In pursuing its own development, a country should promote the common development of all. We should enhance South-South cooperation and North-South dialogue, promote balanced development of the developing and developed countries, and consolidate the foundation for sustaining stable growth of the global economy. We need to work harder to create and upgrade cooperation, deliver more development dividends to our people, and contribute more to global growth.

Fourth, we should remain open and inclusive to broaden the scope for enhancing common development.

The ocean is vast because it is fed by hundreds of rivers. We should respect the right of a country to independently choose its social system and development path, ease distrust and misgivings, and turn the diversity of our world and differences among countries into dynamism and momentum. We should keep an open mind, draw upon development practices of other continents, share development resources and promote regional cooperation.

During the first decade and more of the new century, trade within Asia has increased from US$800 billion-worth to US$3 trillion-worth, and Asia's trade with other regions has grown from US$1.5 trillion-worth to US$4.8 trillion-worth. This demonstrates that cooperation in Asia is open and goes hand in hand with Asia's cooperation with other regions, and that everyone has gained from such cooperation.

Asia should welcome non-Asian countries to play a constructive role in ensuring stability and development of the region. Likewise, non-Asian countries should respect Asia's diversity and its long-standing tradition of cooperation. This will create a dynamic environment in which Asia and other regions enjoy mutually reinforcing progress.

Ladies and gentlemen,
Dear friends,

China is an important member of the Asian family and the global family. China cannot develop itself in isolation from the rest of Asia and the world. On their part, the rest of Asia and the world cannot enjoy prosperity and stability without China.

Last November, the CPC held its 18th National Congress, which designed the blueprint for China's development in the years to come. The main goals we set for China are as follows:

By 2020, China's GDP and per capita income for urban and rural residents will double the 2010 figures, and the building of a moderately prosperous society in all respects will be accomplished. By the mid-21st century, China will be turned into a modern, prosperous, strong, democratic, culturally advanced and harmonious socialist country; and the Chinese Dream – the renewal of the Chinese nation, will be realized. Looking ahead, we are full of confidence in China's future.

Still, we are aware that China remains the world's largest developing country, and it faces many difficulties and challenges. We need to make relentless efforts in the years ahead to deliver a better life to all our people. We are absolutely committed to reform and opening up, and we will concentrate on the major task of shifting the growth model, focus on running our own affairs well and endeavor to advance the drive towards socialist modernization.

As a Chinese proverb goes, "Neighbors wish each other well, just as loved ones do to each other." China will continue to promote friendship and partnership with its neighbors, strengthen friendly ties, intensify mutually beneficial cooperation and ensure that its development will bring even greater gains to its neighbors.

China will contribute more to development and prosperity in both Asia and the world. Since the beginning of the new century, China's trade with its neighbors has grown from US$100 billion-worth to US$1.3 trillion-worth, making China the largest trading partner, the biggest export market and a major source of investment for many of these countries.

China's interests have never been so closely connected with those of the rest of Asia and the world as a whole in both scope and depth. Going forward, China will maintain its robust growth momentum. Its domestic demand, particularly consumption-driven demand, will continue to grow, and its outbound investment will increase substantially. It is projected that in the next five years, China's imports will reach some US$10 trillion-worth, and its outbound investment will reach US$500 billion-worth. In addition, over 400 million outbound trips will be made by Chinese tourists.

The faster China grows, the more development opportunities it will create for the rest of Asia and the world.

We are firm in our resolve to uphold peace and stability in Asia and the world. We Chinese deeply cherish peace, as we know too well the agonies inflicted upon us by war and turbulence. China will continue to develop by securing a peaceful international environment, and at the same time, it will uphold and promote world peace through its own development. China will continue to properly handle differences and disputes with relevant countries. On the basis of defending its sovereignty, security and territorial integrity, China will maintain good relations with its neighbors and overall peace and stability in our region. China will continue to play a constructive role in addressing regional and global flashpoints, encourage dialogue and talks for peace, and work hard to solve all issues properly through dialogue and negotiation.

China will energetically promote regional cooperation in Asia and around the world. It will enhance communication with its neighbors, explore the building of a regional financing platform, and advance economic integration within the region, thus increasing its competitiveness. China will take an active part in Asia's regional cooperation process and promote regional and sub-regional cooperation with non-Asian regions and countries.

China will continue to champion and promote trade and investment liberalization and facilitation, step up two-way investment with other countries and boost cooperation in new priority areas. China firmly supports Asia's opening up and cooperation with other regions for their common development. China is committed to narrowing the North-South gap and supports other developing countries in their efforts to enhance their capacity for self-development.

Ladies and gentlemen,
Dear friends,

Promoting good neighborliness is a time-honored tradition of China. To enhance peaceful development and mutually beneficial cooperation in Asia and the world is a race that has one starting point after another and knows no finishing line. We in China are ready to join hands with friends from across the world in a concerted effort to create a bright future for both Asia and the world, and to deliver real gains to both the peoples of Asia and those of the rest of the world.

Finally, I wish the Boao Forum for Asia Annual Conference 2013 every success!

Jointly Maintain and Develop an Open World Economy

September 5, 2013
Speech on the world economic situation at the first-stage meeting of the G20 Leaders Summit.

Your Excellency President Putin,
Dear colleagues,

It is a great pleasure to meet you here in beautiful St. Petersburg, and to discuss together measures to promote world economic growth and employment. First, I would like to extend my heartfelt thanks to President Putin and the Russian government for your proactive efforts and considerate arrangements in making this summit possible!

At present, the world economy is gradually recovering, and the situation continues to develop in a good direction. At the same time, the negative impact of the international financial crisis lingers on, and there is still a long way to go for global economic recovery.

The situation decides our tasks, and our actions determine their effectiveness. We should take a long-term view, strive to shape a world economy in which all countries enjoy development and innovation, growth linkage and integration of interests, and firmly maintain and develop an open world economy.

– Innovative development is necessary for the sustainable growth of the world economy. Growth driven by stimulating policies and large-scale and direct government intervention in the economy can only treat the symptoms but not the disease, while growth at the cost of high energy consumption and environmental pollution is even less sustainable. Countries should improve the quality and efficiency of economic growth and avoid simply measuring development by the GDP growth rate. They should invigorate markets and enhance economic competitiveness through active structural reform.

– Interactive growth is necessary for the sturdy growth of the world economy. A vibrant world economy depends on the joint growth of all countries, which should be aware of the commonality of their destinies, and gain a really clear understanding of the linkage effect, that is, "benefit to one means benefit to all, whereas harm to one means harm to all." We should cooperate while competing, and achieve mutually beneficial results through cooperation. We should take into consideration the interests of other countries when pursuing our own national interests, and take into consideration the development of other countries when seeking our own development. Mutual help between different countries in solving salient problems is the objective requirement of world economic development. Every country should be able to create a linkage between its own development and that of other countries, and to bring to each other positive instead of negative spillover effects.

– Convergence of interests is necessary for the balanced growth of the world economy. Balanced growth is not a zero-sum game that transfers growth from one country to another, but a growth entailing shared welfare. Countries should give full play to their comparative advantages, work together to optimize global resource allocation, improve the layout of global industry, build a global value chain that shares interests equally, and foster a big global market that benefits all parties, so as to achieve mutually beneficial development.

To shape a world economy of this kind, all G20 members need to build a closer economic partnership, and to shoulder their due responsibilities.

First, they need to adopt responsible macro-economic policies. The major economies should take care of their own matters and ensure that their own economies are sound. This is our basic responsibility. We should improve the macro-economic policy coordination mechanism, and strengthen communication and coordination.

Macro- and micro-economic policies and social policies must be integrated. All countries should support economic policies with social ones, and create favorable conditions for the implementation of macro and micro-economic policies. The decision of the G20 Finance Ministers and Central Bank Governors' Meeting and G20 Labor and Employment Ministers' Meeting to strengthen coordination between economic and employment policies is correct, and we should stick to it firmly.

In this regard, China adopts its economic policies not only for the good of its own economy, but for the good of the world economy as well. China's economic fundamentals are good. In the first half of this year its GDP grew by 7.6 percent. Nonetheless, China also faces such problems as high local government debt and excessive capacity in some industries. These problems are controllable, and we are taking measures to address them.

We have realized that to solve the root problems in our long-term economic development we must firmly streamline our economic structure, even if we have to slow down the growth rate a bit. Any undertaking needs comprehensive and far-sighted thinking. A development model resembling killing a goose to get its golden eggs or draining the pond to catch the fish cannot be sustainable.

China's economy is highly integrated with the world economy. A China that enjoys more stable, higher-quality and more sustainable growth is conducive to the long-term economic growth of the world as a whole. China has the conditions and ability to achieve sustainable and healthy economic development, and produce more positive spill-over effects for the world economy.

Second, we must safeguard and develop an open world economy. "A single flower does not make spring while one hundred flowers in full blossom bring spring to the garden." Countries will grow if their economies are open, and conversely decline if their economies are closed. We must follow the tide of the times, oppose all forms of protectionism, and make good use of international and domestic markets and resources.

We should maintain a free, open and non-discriminatory multilateral trading system. We should avoid making exclusive trade standards, rules and systems, so as to prevent the segregation of the global market and the disintegration of trade systems. We should improve the global investment rules, guide the rational flow of global development capital and use development resources more effectively.

Third, we must improve global economic governance, and make it fairer and more just. The G20 is an important platform for developed and developing countries to engage in consultations on international economic affairs. We should build the G20 into an important force for stabilizing the world economy, weave an international financial safety net and improve global economic governance.

We should continue the reform of international financial institutions. The relevant countries should further push forward the implementation of the plan for reforming the management of the International Monetary Fund and for making a new sharing formula that reflects the weight of the economic aggregate of the different countries in the world economy, and continue to strengthen oversight concerning the international financial market, so that the financial system will depend on, serve and promote the development of the real economy in a sound way. The relevant countries should build a stable and risk-resistant international monetary system, reform the basket of currencies for Special Drawing Rights, strengthen the connections between international and regional financial cooperation mechanisms, and build a "firewall" against financial risks.

China supports the strengthening of multilateral cooperation against tax evasion, and is keen to contribute its share towards international tax governance.

I would like to stress that, in order to promote the sustainable and healthy development of its economy and society, China will resolutely carry its reform forward. We are conducting overall research into comprehensively continuing the reform to a deeper level, so as to streamline the structures in the economic, political, cultural, social and ecological sectors through overall planning, further release and develop social productivity, and give full play to the creativity of the whole of our society.

China will build a stronger market system, streamline the structures in the fields of macro-economic regulation and control, taxation, finance, investment, administration and other fields, and give full play to the basic role of the market in resource allocation.

China will further the reform of the marketization of interest and exchange rates, to increase the flexibility of the Renminbi exchange rate, and gradually make the Renminbi capital account convertible.

China will adhere to the opening-up strategy of mutual benefit, continue to streamline the structures of investment and trade, improve relevant laws and regulations, create a legal environment of fair operations for foreign companies in China, and resolve trade disputes with relevant countries through consultations.

Dear colleagues,

As long as we work together and build a closer partnership, the G20 will enjoy more stable, better and further development, and the people of all countries will have more confidence in the world economy and in our future life.

Thank you!

Carry Forward the "Shanghai Spirit" and Promote Common Development

September 13, 2013
Speech at the 13th meeting of the Council of Heads of Member States of the Shanghai Cooperation Organization in Bishkek.

Your Excellency President Almazbek Atambayev,
Dear colleagues,

It gives me great pleasure to attend the Bishkek Summit of the Shanghai Cooperation Organization. I would like to thank Kyrgyzstan, the SCO Presidency, for your meticulous preparations and thoughtful arrangements for the success of this summit. China commends Kyrgyzstan for your enormous and effective efforts over the past year for the SCO's development.

In light of the latest developments in the international and regional situation and in response to the common aspirations of member states for stability, growth and better lives for their peoples, this summit has focused on the implementation of the Treaty of Long-term Good-neighborliness, Friendship and Cooperation. It will ratify the Plan of Action of the Treaty and map out the blueprint for the development of the SCO in the next five years. These efforts will offer broader prospects for the organization.

Just as the SCO enjoys precious opportunities for development, it also faces severe challenges. The "three forces" of terrorism, separatism and extremism all pose threats to the security and stability of this region as do drug trafficking and transnational organized crime. The international financial crisis has caused varying degrees of economic difficulties for countries in this region, leaving them in a period of adjustment and recovery.

Challenges such as these are more than any one country can handle alone. We must therefore enhance cooperation and unite to become stronger. And in this regard, I would like to suggest that we do the following.

First, we should carry forward the "Shanghai Spirit." To implement the "Shanghai Spirit," we should build up trust among member states and conduct mutually beneficial cooperation based on equality, consultation, mutual understanding and mutual accommodation. This conforms to the trend of peace and development of the times and accords with the interests and aspirations of the people of the member states.

We should implement the Treaty of Long-term Good-neighborliness, Friendship and Cooperation with real actions and promote cooperation wholeheartedly in all fields within the SCO framework, so that member states will become good neighbors living in harmony, good friends pulling together in troubled waters and good partners sharing weal and woe.

Second, we should jointly safeguard regional security and stability. A secure and stable environment is a prerequisite for mutually beneficial cooperation, and common development and prosperity. We should implement the Shanghai Convention on Combating Terrorism, Separatism and Extremism and the Program of Cooperation, improve the system of law enforcement and security cooperation of the SCO, entrust the regional counter-terrorism structure with responsibility for anti-narcotics operations, and on this basis establish a center for comprehensive responses to security threats and challenges.

The relevant authorities within the member states should also open up a channel for routine communication, and explore ways to act and work together to combat terrorism, separatism and extremism so as to create a sound working and living environment for the peoples of this region.

Afghanistan is an observer of the SCO, and its situation is closely related to regional security and stability. The SCO should support it in national reconciliation, help it realize peace and stability as soon as possible, and safeguard regional security.

Third, we should focus on practical cooperation. This is the material basis and main driver for the SCO's development. All the six member states and the five observers are located along the routes of the ancient Silk Road. As such, we are all duty-bound to carry forward the Silk Road spirit by taking the following steps:

Number one, open up new transport and logistics routes. The member states could move speedily to sign the Agreement on the Facilitation of International Road Transport. Once signed, the agreement would be open for wide observer participation on a voluntary basis so that the participating countries could build unimpeded transport corridors connecting the Baltic with the Pacific and connecting Central Asia with both the Indian Ocean and the Persian Gulf.

Number two, explore a trade and investment facilitation agreement. Extensive trade and investment cooperation with full consideration for the interests and concerns of all parties would allow us to thoroughly unlock the potential for cooperation among member states and achieve mutual complementarity in the interest of our common development and prosperity.

Number three, step up cooperation in the financial sector. We should establish an SCO development bank which would provide funding guarantees and serve as a settlement platform for the organization's infrastructure development and collaborative economic and trade projects. In the meantime, the SCO should set up a special account to ensure funding for project studies, exchanges and training within its framework. We should make full use of the inter-bank consortium to intensify exchanges and cooperation between financial institutions of the countries in this region.

Number four, establish an energy club. This would help us coordinate energy cooperation within the SCO framework, secure stable supply and demand, ensure energy security, and, on top of these, encourage extensive cooperation in such areas as energy efficiency and new energy sources.

Number five, put in place a cooperation mechanism for food security. We should enhance cooperation in agricultural production, agrotrade and food safety to ensure greater food security.

Last but not least, we should intensify people-to-people and cultural exchanges to build strong public support and a social foundation for the SCO's future development. We should promote cooperation in a wide range of areas such as culture, education, film and TV, health, sports and tourism.

At the Beijing Summit, China announced a ten-year program of 30,000 government scholarships for the other member states. We are ready to work closely with the other member states to maximize the benefit of this program.

China will also establish a China-SCO base for international judicial exchanges, cooperation and training at Shanghai University of Political Science and Law. We would like to make it a platform for training judicial professionals for other member states.

Traditional medicine is a new area of cooperation. China stands ready to join hands with other member states in building medical institutions specializing in traditional Chinese medicine to make full use of such resources for the benefit of the people of our member states.

China has taken the lead in establishing an SCO Committee on Good-neighborliness, Friendship and Cooperation in line with a consensus among the parties concerned. We hope that all fellow member states and observer countries will establish similar organizations for the purpose of enhancing mutual understanding and traditional friendship among our peoples.

The Bishkek Declaration clarifies the stand of member states on the Syrian issue. Here I would like to reiterate that China pays close attention to the Syrian situation, supports the international community's drive for a cease-fire and peace talks, and calls on both sides of the Syrian conflict to work out a political solution to the crisis. China supports Russia's proposal that Syria surrender its chemical weapons to international control for their eventual destruction. China is ready to enhance communication and coordination with related parties through the UN Security Council, and will continue its unremitting efforts in facilitating a political settlement.

Thank you!

Work Together for a Better Asia Pacific

October 7, 2013
Speech at the APEC CEO Summit, Bali, Indonesia.

Distinguished Chairman Wishnu Wardhana,
Ladies and gentlemen,
Dear friends,

It is a great pleasure for me to have the opportunity to join you, distinguished representatives of the Asia Pacific business community, in this island paradise.

Bali is not only a world-renowned tourist attraction, but also the birthplace of the Bali Process and the Bali Road Map. And now, hosting the APEC Economic Leaders' Meeting, Bali carries the expectations of Asia Pacific and the rest of the world.

The world economy is still struggling towards recovery, and the Asia Pacific economy, while enjoying positive growth, is confronted with new challenges. People around the world are looking to this year's APEC meeting to give new impetus to regional and global economic growth.

Ladies and gentlemen,
Dear friends,

The world economy is still in the middle of profound readjustment. While there are signs of recovery, there are also problems of fragile foundations, inadequate momentum and uneven pace. Major developed economies are far from resolving their structural problems, making it all the more necessary to strengthen macro-economic policy coordination. Emerging market economies have slowed down, and now face more external risks and challenges. The WTO Doha Round negotiations are fraught with difficulty, and trade and investment protectionism is resurfacing in new forms. To achieve a full recovery and healthy growth of the world economy will be a long and tortuous process.

Confronted with these new challenges, both developed and developing economies are looking for new drivers of growth.

Where can we find them? In my opinion, they can only be found through reform, readjustment and innovation. The Asia Pacific region has long been an important engine of world economic growth. To push for a recovery in the sluggish world economy, economies in the Asia Pacific region should have the courage to do what has never been done before and build an open growth mode featuring innovative development, interactive growth and converging interests. Only by so doing can the Asia Pacific economies play a leading role in the recovery of the world economy. A Chinese poem runs, "When one doubts whether there is a way out from the endless mountains and rivers, one suddenly finds a village shaded by soft willows and bright flowers."

This is exactly what China is doing. China's economy grew at a rate of 7.6 percent in the first half of this year. This is, indeed, somewhat lower than the previous growth rate of over 8 percent, which has caused worries about the prospects for the Chinese economy. Some wonder whether there will be a hard landing, whether sustainable, healthy growth is still possible, how China will deal with this situation, and what impact this will have on the Asia Pacific region. Here I wish to share with you some of my observations.

To begin with, I want to emphasize that based on a comprehensive analysis of all factors, I am fully confident about the future of China's economy.

I am confident because first of all China's growth rate is within a reasonable and expected range. From the previous double-digit growth rate to 9.3 percent in 2011, 7.8 percent last year and 7.6 percent in the first six months of this year, the change in pace of growth has on the whole been smooth. In fact, the growth rate of 7.6 percent makes the Chinese economy the fastest growing among all major economies. The fundamentals of the Chinese economy are good; GDP growth and other major economic indicators are within the expected range. So everything has been going as expected, and nothing has come as a surprise.

The slowdown of the Chinese economy is an intended result of our own regulatory initiatives. This is because, according to a thorough calculation done at the time we set our mid- and long-term development goals to double the 2010 GDP and per capita income by 2020, it is judged that a 7 percent annual growth rate would suffice. Moreover, we have recognized that to ensure long-term economic development China has to press ahead with structural reform, even if this requires some sacrifice of pace. In whatever undertaking, one has to look far and plan wisely to take care of both short- and long-term needs. Killing the goose to get the eggs or draining the pond to catch the fish is no formula for sustainable development.

Second, I am confident because the quality and efficiency of China's economic development are improving steadily. China's economy in the first six months of this year has generally made smooth progress. By "smooth" I mean our economic growth has been within a reasonable range, and by "progress" I mean the shift of our growth mode has picked up pace. China is moving from over-reliance on investment and export in the past to increased dependence on domestic demand, especially on consumption. The economic figures for the first half of this year show an increasingly visible role of structural adjustment in boosting growth. Domestic demand has contributed 7.5 percentage points to the GDP growth, with 3.4 percentage points coming from consumption. We no longer take the GDP growth rate as the sole criterion for success; instead, we are focusing more on improving the quality and efficiency of growth. This has proved a responsible approach for both China and the rest of the world.

Third, I am confident because China has a strong domestic driving force for growth. This force is increasing and will continue to get stronger. The ongoing process of a new type of urbanization will create space for hundreds of millions of Chinese to move from villages to cities in pursuit of a better life. The improvement of education in China will bring about a modern, professional workforce of higher caliber, broader vision and better skills. China's vigorous implementation of the innovation-driven development strategy will more closely link science and technology with economic growth, and foster innovation and emerging industries. The continued expansion of domestic demand and consumer market in China will unlock considerable potential for growth. And, above all, China is committed to putting people first and making development benefits accessible to more people across the country. All these will translate into a strong home-grown force for our economic advance.

Fourth, I am confident because the Asia Pacific region enjoys sound development prospects. Thanks to the concerted efforts of all its economies, the Asia Pacific region boasts a high level of free movement of capital, information and people, and an increasingly clear division of labor. A substantial Asia Pacific market is emerging. The new scientific and industrial revolution that is now in the making will add to the existing strength of the region. The Asia Pacific economies are also in a much better position to fend off risks, with more flexible exchange rate schemes, notably larger foreign exchange reserves and various multilateral and bilateral financial arrangements providing institutional protection. China has faith in the development prospects of the Asia Pacific region. Benefiting from overall economic growth in the region, China has achieved its own development. At the same time, China's development has also contributed to regional economic growth. I believe that such interaction will gain even stronger momentum, thus creating more opportunities for the development of the whole region.

I am firmly convinced that the Chinese economy will maintain its sound growth. At the same time, we are soberly aware of potential problems and challenges from falling demand, production overcapacity, local debts and shadow banking, and we are paying close attention to possible impacts from external forces. In this connection, we are taking prudent and proper measures to forestall any potential problems.

Ladies and gentlemen,
Dear friends,

The Chinese economy has entered a new development stage. Its growth mode and structural readjustment are undergoing profound transformation. In this process, there will inevitably be one challenge after another. Efforts to meet these challenges will be accompanied by the throes of readjustment and other troubles in the development process, which will prove to be unavoidable.

Rainbows mostly appear after wind and rain. As someone aptly put it, "No mountain is too high for a man to scale and no road too long for a man to walk." However high the mountain may be or however long the road may seem, we will be able to get there as long as we stay the course and keep moving forward.

If China is to make progress, it must drive all-round reform and opening up to a deeper level. To live up to the new expectations of our people, we must, with firm confidence in reform and opening up, greater political courage and wisdom, and stronger measures to advance reform and opening up, free our minds, unleash and develop social productivity, and unlock and enhance the creative forces of society.

China is drawing up a master plan for the continuation of reform in all respects. Our general approach is to press ahead with reform in the economic, political, cultural, social and ecological fields in a balanced manner, address the challenges cropping up in the course of development, remove institutional obstacles to sustainable and healthy economic growth, and create a new impetus for economic development through reform.

We will improve our basic economic system, strengthen the market system, advance institutional reform in macro regulation, fiscal and tax systems, financial sectors and investment, extend the market-oriented reform of interest rates and the exchange rate, make the RMB exchange rate more flexible, and achieve, over time, the convertibility of the Renminbi under the capital account. We will continue to reform the administration system, transform the functions of the government, streamline government and delegate powers, in order to have a clearly defined relationship between the government and the market and let the market play its basic role in allocating resources to a greater degree and in a wider scope. We will improve the management of science and technology, enhance innovation capability, and build a system for technological innovation which is led by enterprises and guided by the market and which integrates the efforts of enterprises, universities and research institutes. We will ensure and improve standards of living on a priority basis, promote social equity and justice, achieve higher quality employment, further the reform of income distribution, and improve social security and basic public services. We will step up environmental protection and resource conservation to create a good working and living environment for our people and respond to global climate change.

We will follow a more proactive opening-up strategy, improve the open economy which is mutually beneficial, diversified, balanced, secure and efficient, encourage coastal, inland and border areas to draw on each other's strengths in opening up, develop open areas that take the lead in global economic cooperation and competition, and establish pilot open areas that drive regional development. We will continue to attach equal importance to export and import, and promote balance in foreign trade. We will attract foreign investment and encourage companies to "go global" at the same time, and enhance international investment cooperation. We will promote investment- and trade-related institutional reforms, and improve relevant legislation to create a legal environment in which foreign companies in China can operate in a fair manner. We will make overall planning for bilateral, multilateral, regional and sub-regional opening up and cooperation, accelerate the implementation of the FTA strategy, and promote communication and exchanges with our neighboring countries.

We are aware that the reform is a profound revolution that involves adjustment of major interests and improvement of systems and institutions in various fields. China's reform is sailing in uncharted waters with tough challenges. The problems we face in the current phase of reform are especially difficult. It is extremely important that we press ahead without letting up. If we hesitate and become indecisive, we will not be able to make breakthroughs, and all our previous gains may be lost.

China is a big country. We cannot afford any drastic mistake on issues of fundamental importance, as damage from such mistakes will be beyond remedy. Our position is that we must be both bold enough to explore and advance, and prudent in carefully planning our actions. We will stick to the right direction and press ahead with reform and opening up. We will have the courage to crack the "hard nuts," navigate the uncharted waters and take on the deep-rooted problems that have piled up over the years. We must not stop our pursuit of reform and opening up – not for one moment.

Ladies and gentlemen,
Dear friends,

The nations of the Asia Pacific region are a big family, and China is one of the members. China cannot develop in isolation from the Asia Pacific region while the Asia Pacific region cannot prosper without China. Sustainable and healthy development of the Chinese economy will bring greater opportunities to the development of the region.

China will firmly uphold regional peace and stability, and help cement the foundations for a mutually beneficial situation in the Asia Pacific region. I want to repeat what I noted at the Boao Forum for Asia and other events this year: "Peace, like air and sunshine, is hardly noticed when people are enjoying it. But none of us can live without it." Without peace, development is out of the question, like water without a source and a tree without roots. We Chinese often say, "A family in harmony prospers." As a member of the Asia Pacific family, China is ready to live in amity with other family members, which help each other. We hope that all members of the Asia Pacific family will cherish the peace and stability we now enjoy, which has not come easily, and will work together for a harmonious Asia Pacific of enduring peace and common prosperity.

China will work energetically to boost regional development and prosperity, and broaden opportunities for mutual benefit in the Asia Pacific region. China is the biggest trading partner, largest export market and a major source of investment for many Asia Pacific region economies. In 2012 China accounted for more than 50 percent of Asia's economic growth. By the end of the same year China had approved more than 760,000 foreign commercial investments, and attracted around US$1.3 trillion in foreign direct investment. China has signed 12 free trade agreements with 20 countries and regions, with six more under negotiation. Most of China's free trade partners are APEC members. In the coming five years, China will import over US$10 trillion-worth of goods, invest over US$500 billion overseas and send over 400 million tourists abroad. China's growing domestic demand, particularly consumption and investment demand, will offer foreign investors more opportunities for cooperation.

China will commit itself to building a cross-Pacific regional cooperation framework that benefits all parties. The vast Pacific is free of natural barriers, and we should not erect any man-made ones. We should let APEC lead and coordinate our actions, and uphold the approach of openness, inclusiveness and mutual benefit. We should enhance coordination on macro-economic policies and regional free trade arrangements, promote regional integration, and avoid the Spaghetti Bowl effect, so as to build closer partnerships across the Pacific and jointly pursue long-term development of Asia Pacific.

Ladies and gentlemen,
Dear friends,

"Boundless is the ocean where we sail with the wind." Like a vast ocean, the Asia Pacific region offers enough space for us to make progress together. Each and every APEC member has a stake in the future development of this region.

China has high hopes for this year's APEC Economic Leaders' Meeting. We stand ready to work with our partners in the region to build a beautiful Asia Pacific that leads the world, benefits all parties, and ensures the well-being of future generations. With this in mind, I would like to share with you my vision for the Asia Pacific region in four aspects.

First, an Asia Pacific region that seeks common development. The Asia Pacific economies have close ties and shared interests. We should draw upon our respective strengths, optimize the allocation of economic resources, improve the industrial layout, and build an Asia Pacific value chain and a large-scale Asia Pacific market where benefits are shared by all. The developed economies should provide stronger support and assistance to the developing ones, while the latter should for their part work hard to catch up. Only by narrowing the development gap can we all rise with the tide of development in this region.

Second, an Asia Pacific region that stays committed to open development. The end of World War II was followed by an economic boom of more than 25 years in 13 economies around the world. One common feature of the economies was their opening-up policy. We should follow the trend of the times, uphold a multilateral trading system that is free, open and non-discriminatory, and oppose all forms of protectionism. We should work together in building an open economy and a framework for regional cooperation, and, in an open and inclusive spirit, build the Asia Pacific region into a free trade area.

Third, an Asia Pacific region that promotes innovation-driven development. Growth will be unsustainable if it is solely driven by fiscal stimulus measures and unconventional monetary policies, and will be too costly if it is based on excessive consumption of resources and achieved at the expense of the environment. We need innovation in both theory and practice of development. We should abandon outdated mindsets, break away from old confines, and pursue green, circular and low-carbon development. We should continue to improve our capability in innovation so as to foster emerging industries, explore new forces for growth, and enhance core competitiveness.

Fourth, an Asia Pacific region that pursues interactive growth. The Asia Pacific economies are interdependent, with shared interests and a common future. The success or failure of one may ultimately lead to the success or failure of all. In this chain of dynamic interactions, one economy's development will have a knock-on effect on other economies. We should strengthen the sense of community and of common future, contribute to others' development with our own, tap fully into our respective strengths through coordination and interaction, pass on positive energy, and achieve sound interactions and coordinated development among all the Asia Pacific economies.

At present, the Asian countries, especially emerging markets and developing countries, are in great need of infrastructure. Particularly in the face of such severe challenges as mounting downward pressure and financial volatility, it is necessary for us to mobilize more funds for infrastructural development to maintain sustained and steady economic growth and promote economic integration in the region. To this end, we propose to establish an Asian infrastructure investment bank to help fund the infrastructural development of ASEAN countries and other developing countries in the region. This proposed bank would work together with the existing multilateral development banks in and outside the region to fuel the sustainable and steady growth of the Asian economy.

Ladies and gentlemen,
Dear friends,

The business community is a major force for the development of economy and trade as well as an integral part of APEC cooperation. China places great importance on the role of the business community. We are ready to hear your views and suggestions, and facilitate your deeper and more rapid engagement, especially that of SMEs and micro businesses, in economic development and regional cooperation.

Last August China's business community established an APEC China Business Council. This provides an institutional guarantee for the business sector's further involvement in formulating economic and trade rules of the Asia Pacific region, and demonstrates the readiness of China's business community to undertake more international responsibilities.

More friends, more opportunities. Many of you present here are old friends of the Chinese people who have participated in all China's reform and opening-up endeavors. We will never forget our old friends, and we will be most happy to make new ones. China welcomes and encourages businesses from all economies, APEC members in particular, to invest and do business in China and take an active part in China's reform and opening up. The more friends we have, the more China's reform and opening up will thrive and prosper.

I hope friends from the business community will make full use of APEC as a platform to make your voices heard on how to improve trade and investment environment in the Asia Pacific region, and, with your strength in market information, technology incubation and innovative capability, put forward strategic and progressive suggestions for promoting trade and investment liberalization and facilitation, deepening regional economic integration and the future development of APEC.

Ladies and gentlemen,
Dear friends,

China will host the 2014 APEC Economic Leaders' Meeting and the related events. Taking this opportunity and focusing on the future of APEC, we will seek to build closer partnerships, further pragmatic cooperation, and enhance the leading role of APEC in shaping the long-term development vision of the Asia Pacific region.

I hope that all of you, friends from the Asia Pacific business community, will meet in Beijing then for discussions and witness another important moment in the development of the Asia Pacific region.

Thank you!

New Approach for Asian Security Cooperation

May 21, 2014
Speech at the Fourth Summit of the Conference on Interaction and Confidence-Building Measures in Asia.

Distinguished guests,
Dear colleagues,
Ladies and gentlemen,
Dear friends,

I would like to thank Foreign Minister Ahmet Davutoglu, Special Representative of the Turkish President, for his address. China has assumed the chairmanship of the Conference on Interaction and Confidence-Building Measures in Asia (CICA), so please allow me to take this opportunity to express heartfelt thanks to all sides, in particular Kazakhstan, the initiator of the CICA, and Turkey, the previous chair of the CICA, for your trust and support.

Now, let me make some observations on behalf of the People's Republic of China.

The summit today has brought together leaders and representatives from 47 countries and international organizations, including CICA member states, observers and invited guests of the Shanghai Summit. Under the theme "Enhancing Dialogue, Trust and Coordination for a New Asia of Peace, Stability and Cooperation," we will discuss the important subject of security cooperation, explore policies for long-term peace and stability, and jointly promote development and prosperity. As such, this summit is of great importance to security in Asia and the world at large, and will have far-reaching consequences.

Asia today is home to 67 percent of the world's population, and accounts for one third of the global economy. It is a place where diverse civilizations and nations meet and interact. Peace and development in Asia are closely connected with the future of mankind, and Asia's stability and revival are a blessing to the peace and development of the rest of the world.

Asia today, though facing risks and challenges, is still the most dynamic and promising region in the world. Peace, development and mutually beneficial cooperation are the main trend in the region, and countries in the region generally prefer policies that address differences and disputes through consultation and negotiation. Asia enjoys a rising status in the international strategic landscape, and plays an increasingly important role in promoting a multi-polar world and democracy in international relations. Such a healthy situation in the region has not come easily and ought to be doubly cherished.

Asia today is engaged in vibrant cooperation in the economic field. Cooperation in the security field is making progress despite difficulties, and various cooperation mechanisms are becoming more dynamic. Asia has come to a crucial stage in security cooperation at which we need to build on past achievements and strive for new progress.

As a Chinese saying goes, "A wise man changes his way as circumstances change; a knowledgeable person alters his means as times evolve." We need to keep pace with changing circumstances and evolving times. One cannot live in the 21st century with the outdated thinking of the era of the Cold War and zero-sum game. We believe that it is necessary to advocate common, comprehensive, cooperative and sustainable security in Asia. We need to innovate our security concept, establish a new regional security cooperation architecture, and jointly build a road towards security in Asia that is shared by and of benefit to all.

Common security means respecting and ensuring the security of each and every country. Asia is a region of great diversity. The countries there differ in size, wealth and strength. They vary in historical and cultural traditions as well as social systems, and have different security interests and aspirations. However, we are all part of the same Asian family. With our interests and security so closely intertwined, we will sink or swim together, and we are increasingly becoming a community of shared future.

Security must be universal. We cannot have the security of just one or a few countries while leaving the rest insecure, in no way can we accept the so-called absolute security of one at the expense of the security of others. Otherwise, just as a Kazakh proverb aptly puts it, "One who tries to blow out another's oil lamp will get his beard singed."

Security must be equal. Every country has the equal right to participate in the security affairs of the region as well as the responsibility for upholding regional security. No country should attempt to dominate regional security affairs or infringe upon the legitimate rights and interests of other countries.

Security must be inclusive. We should turn Asia's diversity and the differences among Asian countries into a vital driving force for regional security cooperation. We should abide by the basic norms governing international relations such as respecting sovereignty, independence and territorial integrity and non-interference in internal affairs, respect the social systems and development paths chosen by individual countries, and fully respect and accommodate the legitimate security concerns of all parties. To buttress and entrench a military alliance targeted at a third party is not conducive to common security.

Comprehensive security means upholding security in both traditional and non-traditional fields. Asia's security challenges are extremely complicated, and include a range of flashpoints and sensitive issues, as well as ethnic and religious problems. The challenges brought by terrorism, transnational crime, environmental safety, cyber security, energy security, and major natural disasters are clearly on the rise. Traditional and non-traditional security threats are interwoven. Security is a growing issue in both scope and implication.

We should take full account of the historical background and reality of Asia's security issues, adopt a multi-pronged and holistic approach, and enhance regional security governance in a coordinated way. While tackling the immediate security challenges facing the region we should also make plans for addressing potential security threats, and avoid a fragmented and palliative approach that only treats the symptoms.

We should have zero tolerance for terrorism, separatism and extremism, strengthen international and regional cooperation, and step up the fight against these three forces, so as to bring peace and happiness to the people of this region.

Cooperative security means promoting the security of both individual countries and the region as a whole through dialogue and cooperation. As the proverb goes, "Strength does not come from the muscles in the arms, but from the unison of the heart." We should engage in sincere and in-depth dialogue and communication to increase strategic mutual trust, reduce mutual misgivings, seek common ground while resolving differences, and live in harmony with each other. We should bear in mind the common security interests of all countries, and start with low-sensitivity areas to build the awareness of meeting security challenges through cooperation. We should expand the scope and means of cooperation and promote peace and security through cooperation. We should stay committed to resolving disputes through peaceful means, stand against the arbitrary use or threat of force, oppose the provocation and escalation of tensions for self-interest, and eschew the practice of shifting trouble onto neighbors and seeking gain at the expense of others.

In the final analysis, let the people of Asia run the affairs of Asia, solve the problems of Asia and uphold the security of Asia. The people of Asia have the capability and wisdom to achieve peace and stability in the region through enhanced cooperation.

Asia is open to the world. While enhancing our own cooperation with each other, countries in Asia must also firmly commit ourselves to cooperation with countries in other continents, other regions and international organizations. We welcome all parties to play a positive and constructive role in promoting Asia's security and cooperation, and work together to achieve mutually beneficial outcomes for all.

Sustainable security means that we need to focus on both development and security, so that security will be durable. As a Chinese saying goes, "For a tree to grow tall, a strong and solid root is essential; for a river to reach far, an unimpeded source is necessary." Development is the foundation of security, and security the precondition for development. The tree of peace does not grow on barren land, and the fruits of development are not harvested amidst the flames of war. For most Asian countries, development means the greatest security and the master key to regional security issues.

To build an Asian security stronghold that can stand the test of any gale we need to focus on development, zealously improve people's lives and narrow the wealth gap so as to cement the foundation of security. We need to advance the process of common development and regional integration, foster sound interaction between regional economic cooperation and security cooperation for synchronized progress, and promote sustainable security through sustainable development.

Ladies and gentlemen,
Dear friends,

The CICA is the largest and most representative regional security forum with the largest number of participants. Over the past two decades the CICA has undertaken the responsibility to strengthen mutual trust and coordination and promote Asia's security and stability. It has followed the principle of consensus through consultation and made an important contribution to increasing understanding, seeking common ground and expanding cooperation.

Today more than ever, the Asian people wish for peace and stability, and the need to work together to tackle challenges to security is greater than before.

China proposes that we make the CICA a security dialogue and cooperation platform that covers the whole of Asia and, on that basis, explore the establishment of a regional security cooperation architecture. China believes that it is advisable to increase the frequency of the CICA foreign ministers' meetings and possibly summits as circumstances change, so as to strengthen the political guidance of the CICA and chart a blueprint for its development.

China proposes that we enhance the capacity and the institutions of the CICA, support improving the functions of the CICA secretariat, establish a defense consultation mechanism of member states and a task force for supervising the implementation of confidence-building measures in various areas within the CICA framework, and enhance exchanges and cooperation in counter-terrorism, business, tourism, environmental protection, and cultural and people-to-people exchanges.

China proposes that we put in place a nongovernmental exchange network for various parties through holding CICA nongovernmental forums and other means, so as to lay a solid social foundation for spreading the CICA concept of security, increasing the CICA's influence and promoting regional security governance.

China proposes that we strengthen the inclusiveness and openness of the CICA. We need to step up coordination and cooperation with other relevant organizations in the region, and expand dialogue and communication with other regions and relevant international organizations.

China will fulfill its responsibilities as CICA chairman and work with other parties to further improve the status and role of the CICA so that together we can raise security cooperation to a higher level.

Ladies and gentlemen,
Dear friends,

China is a staunch force for upholding peace in the region and the world as a whole and for promoting common development. The Five Principles of Peaceful Coexistence initiated by China together with India and Myanmar have become basic norms governing state-to-state relations. China remains committed to seeking the peaceful settlement of disputes with other countries over territorial sovereignty and maritime rights and interests. China has completely resolved, through friendly consultations, land boundary issues with 12 of its 14 neighboring countries. As an active participant in regional security cooperation, China, jointly with other relevant countries, initiated the Shanghai Cooperation Organization and proposed the concept of mutual trust, mutual benefit, equality and coordination. China supports ASEAN, the SAARC and the LAS in playing a positive role in regional affairs. China and Russia jointly proposed an Asia Pacific security and cooperation initiative, which has played an important role in strengthening and maintaining peace and stability in the Asia Pacific region. China works to push forward the Six-Party Talks Concerning the Korean Peninsula, and supports peace and reconstruction in Afghanistan, making unremitting efforts in solving international and regional flashpoint issues through dialogue and negotiation. China joined forces with countries in the region and the wider international community to tackle the Asian financial crisis and the international financial crisis, making its due contribution to promoting regional and global economic growth.

China is firmly committed to the path of peaceful development and the mutually beneficial strategy of opening up. It seeks to develop friendly relations and cooperation with other countries on the basis of the Five Principles of Peaceful Coexistence. China's peaceful development begins here in Asia, finds its support in Asia and delivers tangible benefits to Asia.

"Neighbors wish each other well, just as family members do." China always pursues friendship and partnership with its neighbors, seeks to bring amity, security and common prosperity, and works hard to ensure that its development brings benefits to all other countries in Asia. China will work with other countries to speed up the development of a Silk Road Economic Belt and a 21st-century Maritime Silk Road, and hopes that the Asian Infrastructure Investment Bank can be launched at an early date. China will be more involved in the regional cooperation process, and play its part to ensure that development and security in Asia facilitate each other and are mutually reinforcing.

As the saying goes, "Readiness to converge with others makes a mountain high and a river mighty." As a strong champion of the Asian security concept, China also works to put such a security concept into practice. China will take solid steps to strengthen security dialogues and cooperation with other parties, and jointly explore the formulation of a code of conduct for regional security and an Asian security partnership program, making Asian countries good partners who trust one another and cooperate on an equal footing.

China is ready to introduce mechanisms for regular exchange and cooperation with countries in the region to jointly combat the three forces of terrorism, separatism and extremism. China is ready to discuss with other countries in the region the creation of an Asian forum for security cooperation in law enforcement and an Asian security emergency response center, to enhance security cooperation in law enforcement and better respond to major security emergencies. China calls for exchanges and mutual learning among different civilizations and religions through various means, such as conferences for dialogues among Asian civilizations, so that we will be able to draw on each other's experiences and achieve common progress.

Ladies and gentlemen,
Dear friends,

The Chinese people, in their pursuit of the Chinese Dream of great national renewal, stand ready to support and help all other peoples in Asia to realize their own great dreams. Let us work together to realize the Asian dream of lasting peace and common development, and make a greater contribution to advancing the noble cause of peace and development of mankind.

Thank you!