Dear Mr. Woolcott,

Ladies and Gentlemen,

Dear Friends,

 

Thank you very much for your kind introduction and warm words of welcome.

 

It gives me great pleasure to attend today's luncheon, and I wish to thank the Asia Society AustralAsia Center for its kind invitation. I very much appreciate this opportunity to talk to you about China's foreign policy and share my thoughts with you on how to seize opportunity to promote the overall growth of China-Australia relations.

 

I have visited Melbourne several times. And I have never failed to be impressed by its great vitality as a commercial center of Australia, its unique and rich cultural heritage and its legendary hospitality. I do feel great to be back among friends.

 

Ladies and Gentlemen,

 

The state of Victoria has a special place in the interactions between China and Australia. Over 150 years ago, many of the Chinese immigrants who came to Australia settled down in Ballarat. Those hardworking Chinese contributed their full share to the early development of both Victoria and Australia.

 

Since the forging of diplomatic relations between China and Australia in 1972, and especially since China launched the reform and opening-up program in the late 1970s, China's ties with Victoria have flourished.

 

There are frequent personnel exchanges between China and Victoria, and our ties in business, education, culture, tourism and other areas are becoming ever closer. China is now Victoria's largest trading partner, second largest source of import, third largest export market, and fourth largest source of foreign tourists. The Portland Aluminum Smelter, a China-Australia joint venture, stands as a good example of the success of our cooperation. The sister province/state relationship between Victoria and China's Jiangsu Province is booming. I am confident that as the overall China-Australia relationship moves along the fast track, the friendly ties between China and Victoria will continue to prosper.

 

Ladies and Gentlemen,

 

Now I wish to brief you on development in China.

 

Since the late 1970s, China has sustained rapid economic growth, enhanced its overall national strength and vastly improved the livelihood of its 1.3 billion people.

 

In 2004, China's economy grew by 9.4%, and its GDP amounted to 1.6494 trillion US dollars, or 4.2% of the world's total.  China thus accounted for 14.5% of the global economic growth for the year. In the same year, China's foreign trade reached 1.1548 trillion US dollars, or doubling that of three years before. Its import totaled 561.4 billion US dollars, nearly a 100% increase from three years before. By the end of 2004, total overseas investment in China had reached 562.1 billion US dollars.

 

An open market economy has struck root in China, and the country is now in a new historical stage of development.

 

The development of China has attracted global attention.

 

What kind of path to development will China take?  What does China's growth mean to the rest of the world?  I understand these are the questions that are of keen interest to you.

 

And the message I have for you today is this: China will stick to the path to peaceful development. In taking this path, China will develop itself through securing a peaceful international environment. In taking this path, China will strive to safeguard and promote world peace and prosperity through its own development. It is a logical choice for China made on the basis of its reality, and it is in keeping with the great trend of our times.

 

We in China are soberly aware that despite the remarkable economic and social progress it has made, China remains a developing country, the largest one in the world. It has a huge population, but a weak economic foundation, uneven development, and low level of economic and social development. China faces daunting development challenges ahead. It will take the arduous efforts of several generations before China can achieve the goal of turning itself into a country of moderate prosperity. To reach this goal, we must focus all our attention and energy on national development.

 

We are also keenly aware that no country that wants to realize its development goals can do so without going along with the trend of the world.

 

The pursuit of peace, development and cooperation has become the trend of our times. With economic globalization accelerating, national interests are becoming increasingly converged, and interdependency among countries is growing. No country can achieve development on its own.

 

As a member of the international community, a country can only realize development and prosperity through cooperation with others. For China, it is development that is achieved through peaceful means only that can last and serve the interests of both China itself and the world.

 

Now, what is the implication of this message about China taking the path to peaceful development? Internally, it means the pursuit of development and harmony. Externally, it means the promotion of peace and cooperation.

 

Let me expound my message further by drawing your attention to the following points:

 

China's development is harmonious in nature and is guided by a new concept – a concept of scientific development.

 

At a key national conference held last October, the Chinese Government decided that the country's overall economic and social development initiatives should be guided by the concept of scientific development featuring all-round coordination and sustainability. China's major goals for economic and social development from 2006 to 2010 were also set at the conference.

 

On the economic front, China will work to ensure proper balance among economic sectors, improve economic efficiency and lower energy consumption. On that basis, China aims to double its per capita GDP of 2000 by 2010. Priority will be given to raising energy efficiency, and energy consumption per unit of GDP of 2005 is to be cut by around 20% in 2010. Taking economic development as the central task, China will pursue a new type of industrialization. We will speed up economic restructuring, change the mode of economic growth and raise economic returns. China will endeavor to build an energy-efficient and environment-friendly economy and every effort will be made to build a harmonious society in China – a society where economic and social development is well coordinated and closely geared to the need of its people, and where there is sustainable growth in the economic, political, cultural, social and other fields of endeavor.

 

China's development is, by nature, a peaceful endeavor.

 

As a peace-loving nation, China pursues an independent foreign policy of peace. China wishes to develop relations with all other countries on the basis of the Five Principles of Peaceful Co-existence and work with the international community to advance the lofty cause of peace and development of mankind. To accomplish this goal, it is imperative to have democracy in international relations and diversity in the mode of development. As a responsible member of the international community, China has put forward a new security concept of "mutual trust, mutual benefit, equality and coordination". Pursuing a policy of "fostering a friendly, secure and prosperous neighborly environment", China has developed partnership relations with almost all its neighbors. Militarily, China pursues a strategy that is purely defensive in nature. Experience has shown that China's peaceful development does not constitute any threat to any country.

 

China's development endeavor aims to achieve mutual benefit and common progress.

 

While mainly relying on its own effort, China pursues an opening-up strategy to supplement its development endeavors. China is actively involved in international economic and technological cooperation and competition. It participates in formulating and implementing international economic and trade rules, and strives to achieve mutual benefit and common progress.

 

After more than 20 years of development and having developed trade relationship with most other countries, China has become an integral part of the global economy. China will continue to deepen structural reform of its economy, open further to the outside world, establish a more open market system and carry out more extensive cooperation with all other countries.

 

China's development endeavor is geared to the fundamental interests of the Chinese people and the people of the world, and is responsible and constructive in nature.

 

As a responsible member of the international community, China plays an active and constructive role in both regional and global affairs. It takes its international obligations and responsibilities very seriouly.

 

For instance, China reacted forcefully to alleviate the Asian financial crisis in the 1990s. As a member of the WTO, China fully honors its entry obligations. As a founding member of the United Nations, China takes an active part in UN affairs, playing an important role in upholding world peace and promoting common development.

 

With one-fifth of the global population, the greater development China can achieve, the more contribution it will make to world peace, stability and prosperity. In particular, this will create greater scope for cooperation between China and Australia and more opportunities for our two countries.

 

Ladies and Gentlemen,

 

The world is going through profound changes, and mankind is faced with a host of challenges. As China and Australia are both key countries in the Asia-Pacific region, our growing relations are becoming increasingly important, both for ourselves and for others as well.

 

Turning to bilateral relations, I would say China-Australia relations couldn't be in better shape. There are close exchanges of visits between the leaders of our two countries, which have enhanced mutual trust. This year, Mr. Wu Bangguo, Chairman of the Standing Committee of China's National People's Congress, visited Australia, and Governor-General Michael Jeffrey, Prime Minister John Howard, and House Speaker Mr. David Hawker respectively visited China. These visits have greatly boosted our bilateral relations.

 

China and Australia enjoy fruitful cooperation in trade, energy, culture, science, technology and many other fields. Our two countries also maintain good communication and coordination on major international and regional issues.

 

A strong and durable bilateral relationship of all-round cooperation between China and Australia not only helps promote prosperity of our two countries, it also serves to enhance peace and stability in the Asia-Pacific region and the world at large. In short, it is in the fundamental interests of our two countries and our two peoples.

 

China-Australia relationship is based on broad common interests.

 

-- In spite of differences in ideology, social system and cultural tradition, there is no conflict of fundamental interests between our two countries.

 

China and Australia respect each other politically and enjoy trust between them. On issues that are important to us, we are able to appreciate each other's concerns and accommodate our respective interests. Australia sees China's development as providing an opportunity for itself, and China regards Australia as a good partner of cooperation.

 

I am glad to point out that the leaders of both countries are personally committed to strong China-Australia relations. During his many visits to China, Prime Minister Howard spoke highly of China's reform and opening-up program. He pointed out that China's development is conducive not only to China, but also to the whole world. This farsighted assessment is much appreciated in China.

 

-- Both China and Australia hope to deepen cooperation as a way to help enhance their respective social progress and economic development.

 

Complementarity is a key feature of our two economies. Recent years have seen rapid growth of our bilateral trade relations, which has brought great benefits to our two peoples. Last year, China-Australia trade exceeded 20 billion US dollars, or a 100% increase within a matter of only two years. In the first nine months of this year, the bilateral trade reached 19.71 billion US dollars, registering an increase of 36.4% over the same period last year.

 

China is now Australia's third largest trading partner and second largest export market. It is estimated by some Australian scholars that one-third of Australia's export growth comes from its export to China. On its part, Australia has become China's ninth largest trading partner, and thus contributed its share to promoting China's economic development.

 

Mutual investment is also growing steadily. According to Chinese statistics, by last June, Australia had invested in over 7,000 projects in China, with a total capital of 4.3 billion US dollars. Chinese companies had undertaken more than 260 investment projects in Australia, with a total capital of about 500 million US dollars.

 

In the area of natural resources, China-Australia cooperation is no longer confined to trade of minerals. Joint investment in mines exploitation has been made and there is long-term strategic cooperation in LNG projects. The LNG project in China's Guangdong Province is going well, which is expected to supply LNG as scheduled mid-next year. Discussion is also underway on major new projects in energy and mining.

 

Australia has recognized China's market economy status and the two sides are negotiating a bilateral free trade agreement. All this shows that our bilateral economic relationship is being lifted to a higher level.

 

-- China and Australia are both committed to upholding regional and global peace and stability. They also share common or similar views on major regional and international issues, and maintain regular consultation and coordination on them.

 

In recent years, China and Australia have maintained close cooperation in international and regional organizations such as the UN, WTO, APEC, and the Pacific Islands Forum. The two sides have held fruitful discussions on how to promote regional cooperation. And there is increasing coordination and cooperation between us on new security challenges that are critical to the survival and development of mankind, such as counter-terrorism, non-proliferation, environmental protection, energy security, climate change, and the prevention and treatment of communicable diseases.

 

-- Both China and Australia respect cultural diversity and advocate the harmonious co-existence of civilizations.

 

Diversity is a basic feature of human civilization. It is the source of vitality of today's world. As a country of immigrants, Australia views itself as a multi-cultural society. In China, an ancient civilization with a history of 5,000 years, its 56 ethnic groups live in harmony.

 

Numerous cultural exchanges have taken place between China and Australia in recent years. Many Chinese artists have been to Australia on successful performing tours. The "Australian Cultural Week" held in China was also warmly received.

 

People-to-people exchanges are expanding rapidly. In 2004, 274,000 Chinese tourists visited Australia, and 376,000 Australians visited China. With about 70,000 students in your country, China has become the biggest source of overseas students for Australia. These exchanges have greatly enhanced mutual understanding between our two peoples and brought them ever closer.

 

Ladies and Gentlemen,

 

China and Australia are now faced with new opportunities. We should guide our relations from a strategic height and take the following steps to deepen the all-round cooperation between our two countries:

 

First, maintain high-level exchange of visits. Such visits have proved to play an important and irreplaceable role in boosting the growth of bilateral relations. In recent years, Chinese and Australian leaders have met frequently on bilateral visits and on multilateral occasions. There are also frequent exchanges of visits between parliamentary leaders and cabinet ministers.

 

Regular exchange of views on bilateral relations and international and regional issues of mutual interest are also held. All this has greatly enhanced China-Australia cooperation. China will work with Australia to keep the momentum of high-level exchange of visits to deepen bilateral relations.

 

Second, increase mutual trust and mutual respect, and expand common ground while shelving differences. Progress in China-Australia relations has fully demonstrated that as long as we treat each other as equals, enhance mutual understanding and respect each other, fully address each other's concerns and properly handle differences, our relationship will move ahead on a sound track.

 

The Taiwan question represents China's core national interests. We appreciate Australia's adherence to the one China policy. And we hope that Australia will continue to observe the one China policy and support China's peaceful reunification.

 

Third, fully tap the potentials in China-Australia cooperation. There are both a solid foundation and broad prospects for China-Australia economic cooperation. With the launching of large-scale cooperation projects, great potential will be released for the expansion of bilateral trade. The free trade agreement negotiations will give a major boost to the bilateral business relations and China will work together with Australia in an active and prudent manner to ensure progress in the negotiations.

 

Energy and mining is a key area for China-Australia economic cooperation. Australia, with rich resources and advanced technology, is a major global producer and exporter of energy and mineral resources. It needs a stable and growing overseas market. And that is exactly what China has offered. We hope that the two countries will, acting on the principle of working for the long-term interests and ensuring mutual benefit, strengthen their long-term and strategic cooperation in resources development.

 

Fourth, enhance people-to-people exchanges. We should redouble our efforts to enhance exchanges and cooperation in culture, science, technology, tourism and education.

 

Next year, China will launch a cultural event called "Experience the Chinese Culture in Australia". I hope this event will bring the colorful Chinese culture to the doorsteps of Australian families. We should continue to enhance people-to-people exchanges, especially contacts and exchanges between the young people. This will lay a solid foundation for building stronger bilateral relations at the grassroots level.

 

Fifth, enhance communication and coordination on major international and regional issues, and work to ensure peace and development in both the Asia-Pacific region and the world as a whole. China and Australia should maintain close cooperation and work together to enhance an international environment of long-term stability and security.

 

East Asia cooperation is now gaining momentum, and the first East Asia Summit is being held in Malaysia. We welcome Australia's participation in this process and congratulate Australia on attending the Summit. China is ready to maintain regular contact with Australia on this new platform and work with it to promote cooperation in Asia.

 

Ladies and Gentlemen,

 

To expand all-round China-Australia cooperation is the common desire of our two governments and peoples. In the past 30 years and more since the establishment of diplomatic relations, our bilateral ties have withstood the test of time and changes in the international arena and made steady progress.

 

In concluding, I wish to emphasize that the Chinese Government's pursuit of friendly relations with Australia is based on long-term and strategic consideration. I firmly believe that China and Australia have every reason to become a pace setter for harmonious co-existence between countries with different history, culture, social system and stages of development, and to become good partners of fruitful cooperation. Let us join hands to create a brighter future for China-Australia relations.

 

Thank you.