PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | SPEECHES & EDITORIALS | 1999 | SEIZING OPPORTUNITIES, MEETING CHALLENGES

Seizing Opportunities, Meeting Challenges and Jointly Creating a Better Future for the New Century Madame Wu Yi State Councillor, People's Republic of China Monday, May 17, 1999 The Challenges of the Next Century for the Pacific Basin 32nd International General Meeting of the Pacific Basin Economic Council Hong Kong Convention & Exhibition Centre Hong Kong, China May 17-19, 1999 Honorable Mr. Tung Chee-hwa, Chief Executive of Hong Kong Special Administrative Region, Honorable Mr. Sohmen, International Chairman of PBEC, Distinguished Guests, Ladies and Gentlemen, Good evening! On behalf of the government and people of China and with great pleasure, I would like to congratulate PBEC on the opening of the 32nd International General Meeting, and to express my warm welcome to political leaders, industrialists and business representatives, who have especially traveled to Hong Kong for this meeting. Since its founding, PBEC has played a positive role in promoting business cooperation and inter-governmental communication and exchanges within the region. By focusing on Challenges of the New Century for the Pacific Basin, which is an excellent theme in my view, this International General Meeting carries practical significance particularly as we stand at the turn of the century. During the past year and more, the Asian economy was overshadowed by the financial crisis, and countries hit by the crisis suffered heavy losses. Under the care and with support of the international community, and thanks to the efforts made by relevant governments and peoples, these countries are leaving the crisis behind them and getting out of the difficulties. In China, there is an old saying: "A fall in the pit, a gain in the wit." The Asian financial crisis has prompted many countries and regions to sum up experience, draw lessons and intensify economic restructuring and reform. In this sense, something bad is turning into something good. We believe, after going through this disaster and when solutions to the problems are found, the Asian economic fundamentals as a whole will be much stronger and healthier, and the prospects for the Asian economy will be brighter and more splendid. The Asian financial crisis has made people think deeply. One of the important aspects is how to look at the opening up of markets. We are of the view that, against the background of rapid economic globalization, countries and regions opening up markets to each other is an inevitable trend of historic significance. For any country or region wishing to develop itself, to open up to the outside world is essential. The closed door policy certainly can not bring about advancement. On the other hand, one must also realize, since the level of economic development varies from country to country, market opening in different countries should not, and indeed can not, come in quick march. Each must move forward actively and steadily based on the actual circumstances. The reason is simple: the extent of market opening in a certain country is mandated by its level of economic development and the process of reform, rather than by wishful thinking. It is particularly true for countries whose economies are underdeveloped in comparative terms. As with any government, to strengthen and improve macro-economic regulation, nurture and develop market systems, adjust and optimize economic structure, build and improve rule of law governing economic activities, and to devise and reform the financial system, each requires a complicated process. Based on China's experience, social stability must always be the prerequisite before reform and opening can be intensified and greater development achieved. China has recently taken important steps towards liberalization of telecommunications, banking, insurance, trade and commerce and tourism. We will continue to actively create the necessary conditions to push forward the opening endeavor in all directions, at all levels. Our attitude towards China's membership in WTO is positive, and our position remains unchanged. However, China will never sacrifice its fundamental national interests in exchange for entry to WTO. I therefore do not want to see any country or anyone active in the business community to set its requests on China too high. Otherwise, it is neither in the interest of the stability and development of the Chinese economy, nor in the best interest of the economic globalization process. Ladies and gentlemen, the 21st century is just around the comer. It is a century full of opportunities and challenges. It is a century promising more splendid achievements in the history of the mankind. The knowledge economy and information age approaching us will bring very profound changes to societies, economies as well as the way of life and production of the mankind. The information industry, without any doubt, will become the greatest and most dynamic industry in the global economy of the future, and information will be the most important resource and competition factor. New developments and breakthroughs in other hi-tech areas will also be achieved, changing the landscape with each passing day. Any country or industry able to take full advantage of the opportunities created by the information age is more likely to develop quickly and stand out in the forefront within a short period of time. Along this line, to intensify the informatization and modernization of the national economy, the Chinese government has formulated and implemented the strategy of developing China through science and education as well as policy measures encouraging innovation in knowledge, science and technology, with special emphasis on the information industry. Without any doubt, economic development will bring better welfare to the people. However, we must also bear in mind that, while developing the economy, close attention must be paid to the protection of natural resources and the ecological environment. For any country, region or the world as a whole,, there are only limited natural resources available for economic development. On the other hand, economic development will inevitably affect the environment. Resource and environmental issues are daunting challenges people must address in the 21st century as they work ever harder to develop the national economy. The Chinese government has already placed great importance on these issues. It has formulated and implemented the strategy on sustainable development, to promote the harmony between economic development and resource and environmental protection. We will introduce more measures, such as upgrading industries, developing environmental protection industry, improving energy structure and extending clean production processes and technologies, to ensure the implementation of this important strategy. We will continue to carry out various cooperations with more countries and international organizations in the area of resource and environment protection. For the past year or so, China has achieved fairly rapid economic growth despite of the grim domestic and international economic conditions. In 1998, China's GDP recorded a 7.8% increase; Import and export totaled US$324 billion as export continued to grow; Nearly 20,000 new foreign investment projects worth. US$52.1 billion were approved and about US$45.6 billion foreign direct investment was actually utilized. As our neighbors drastically depreciated their currencies, we managed not to devaluate ours. This has not only benefited our economic stability and development, but also made positive contributions to the Asian and global economic and financial stability. As our economy continues to grow, new significant steps have been taken to push forward reforms. We are happy to see that the reforms on state-owned enterprises, grain distribution, financial system, State Council institutions, housing and medical insurance systems are going on smoothly. Since the beginning of this year, our economy has showed a good momentum. In the first quarter, GDP increased by 8.3% over the same period of last year, thanks in part to a 10.1% growth in industrial output. In parallel, infrastructure projects focusing on energy, transportation, telecommunication and environmental protection were in full swing and the reform of state-owned enterprises and financial system was moving forward in an orderly fashion. According to our estimation, this year's Chinese economy will be better than last year's. With foreign exchange reserves standing at US$146 billion and a favorable international balance of payment position, the Renminbi will not be devalued. Of course, we are still facing quite a lot of difficulties, and there are rooms for improvement in some areas. Among others, the Asian financial crisis has made export growth more difficult to achieve; there is outstanding contradiction in the economic structure as the quality and efficiency in the operation of the economy remains low; the market system and economic regulation still need to be strengthened. In the face of these difficulties, the Chinese government is confident that it has the ability and means to overcome all difficulties on the way towards future progress. We firmly believe that, the reform aimed at building a socialist market economic system will be successful, and our national economy will continue to grow rapidly and soundly. It’s almost two years since Hong Kong's return to the motherland. For those two years, the government of China has strictly observed the Basic Law. It has never interfered in matters within the autonomy of the Hong Kong SAR government, and it has been working to ensure that the Hong Kong SAR government will implement "one country, two systems", "Hong Kong people governing Hong Kong and high degree of autonomy". Confronted by the Asian financial crisis, the Hong Kong SAR government, under the leadership of Mr. Tung Chee-hwa, took a series of effective measures, and successfully withstood the severe test. There has been increasing cooperation between Hong Kong and the mainland in trade, economic, scientific, technological and cultural fields. We believe, as the economy of the Chinese mainland continues to grow, as Hong Kong-overcomes the shadow of the financial crisis, Hong Kong's economy will stand for greater development. Ladies and gentlemen, the mankind is at a critical moment of safeguarding world peace and promoting common development, and the Chinese people are firmly committed to this grand cause. However, in the act of pursuing hegemony and power politics, the US-led NATO flagrantly launched a missile attack on the Chinese embassy in the Federal Republic of Yugoslavia, in total disregard of the norms of international relations. This barbarous act has naturally been condemned by the Chinese government, its people, and all countries and peoples in the world, which love peace and uphold justice. The Chinese government has solemnly stated its position, and made it clear that the US government should conduct a complete, thorough and fair investigation into the incident, promptly publish the findings of the investigation, and meet all requests put forward by the Chinese government and its people. We firmly believe that international justice will prevail, the force for world peace and progress will never be resisted, and a fair, rational new world order will certainly be established. Ladies and gentlemen, the Pacific region has long contributed significantly to the social and economic development of the mankind. At the dawn of the new century, we must seize new opportunities, meet fresh challenges, and seek greater development. The Chinese government and business community stands ready to work with you, actively pursue economic, technical cooperation and exchanges, and to create a better future for the new century. We hope PBEC and all its members will play a more important role in promoting economic and technical cooperation within the region. Here, I would like to reiterate that, China's basic state policy of reform and opening to the outside world would not be changed. The door of China is forever open to the world. Thank you for your attention!