PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | SPEECHES & EDITORIALS | 1999 | CHINA — APEC PARTNER

China — APEC Partner in Building Global Prosperity His Excellency Jiang Zemin, President of the People's Republic of China APEC CEO Summit Auckland, New Zealand Saturday, September 11, 1999 Good Evening. I am delighted to attend this grand Gala Dinner in this pleasant evening at the invitation of Prime Minister Shipley and the APEC CEO Summit 1999 Incorporation. At this important historical juncture of ushering in the new century, it is most significant that the leading figures of the business community in the Asia-Pacific have come together and discuss major issues concerning economic development of the Asian-Pacific region and the world at large. Now I would like to take this opportunity to brief you on China's economic development. The 1997 Asian financial crisis has had a grave negative impact on regional economy, which had maintained a sustained development for some years. China's economy has also come under serious attacks. The Chinese Government has promptly adopted measures to stimulate domestic demand and hence economic growth. China has made its own contribution to alleviating the negative effects of the crisis, helping the countries concerned out of the crisis and maintaining economic stability on Asia. At present, the Chinese Government is actively implementing the policies to stimulate domestic demand, in combination with such macro economic levers as fiscal, taxation and monetary policies, on order to promote economic growth. In the first half of 1999, China maintained a 7.6% GDP growth rate. We will further increase effective demand, speed up infrastructure development, promote technical advancement and industrial upgrading in enterprises, ensure a steady development of agriculture, carry out extensive environmental and ecological projects, deepen reform of state-owned enterprises, adjust economic structure, and improve the quality of economic growth and the performance of our economy. We will, as always, firmly pursue the policy of reform and opening up. The future is bright for China's economic development and modernization drive. The growing trend of economic globalization, an important treasure in today's world economy, is a product of the rapid scientific and technological progress, fundamental adjustment of industrial structure and sharp market fluctuations in the world today. The trend towards economic globalization has brought about not only opportunities for development but also grim challenges and risks for the countries in the world. It is like a double-edged sword. While helping open markets, intensify competition and improve efficiency, it presents to all countries, especially developing ones, a new issue of how to maintain their own economic security. As a forum for regional economic cooperation with mutually-beneficial cooperation as its principle and common prosperity as its purpose, APEC ought to do something to help its members to take an active part in international economic cooperation and to effectively cope with the risks and challenges accompanying economic globalization. Strengthening Ecotech, APEC would be deprived of a sustained driving force in its development. Ecotech is by no means confined to a simple transfer of technologies. Rather, it covers, among others, cooperation in the research and development of science and technology, in the industrial application of mature technologies as well as in finance, venture capital and human resources. Such cooperation should be designed to materialize the potential of all members in cooperation in the fields of science and technology and industry. The Chinese Government has all along attached the importance to and actively conducted economic and technical cooperation with fellow APEC members. Since I proposed the establishment of an APEC High-Tech Science and Technology Industry Parks Network at the APEC Informal Leadership Meeting held in the Subic Bay in 1996, 5 state-level high-tech industry parks of China have joined the network. Furthermore, the China-APEC Science and Technology Industry Cooperation Fund and the APEC China Enterprises Assembly were set up in 1998. I believe that all these measures will provide favorable conditions for China and other APEC members to partake in Ecotech activities and forcefully promote the exchanges and cooperation between APEC members and their enterprises in such areas as advanced technology, managerial expertise and human resources. While placing emphasis on Ecotech, the Chinese Government has taken an active part in APEC's trade and investment liberalization process and has taken a series of major steps. The simple average tariff rate of China has dropped steadily year by year from the level of 42.5% in 1992 to 16.7% at present. The average tariff rate for industrial goods of China will have been reduced to 10% by 2005. China has transformed the old model of management under the planned economy and is vigorously developing a socialist market economy. We have eliminated a large number of non-tariff measures. In the area of trade in services, China has adopted a host of major opening-up measures in an incremental manner in light of its own national conditions. We will continue to press ahead with the reform and opening-up and actively engage in exchanges and cooperation with other member economies of APEC and other countries of the world, so as to make fresh contribution to economic development in the Asia-Pacific and the entire world. Enterprises are not only the players in the economic activities and technological innovation, but also the principal driving force in international economic and technical cooperation. They should play an important role in the economic development of the Asian-Pacific region and the world at large. To ensure deepened and productive APEC cooperation, it is necessary to have more extensive and deeper participation by enterprises in the process. Inflow and outflow of investment and technology represent the two interrelated and interactive aspects of China's opening-up policy. The CEOs present here have a great deal of successful experience in international business operations and should share such experience with each other and explore opportunities for further cooperation. We welcome all of you to China for trade and investment. The Chinese Government will provide you with necessary support and assistance to facilitate your activities in economic and technical cooperation and trade in China. China boasts of a vast market, and its potential market is even bigger. With a good growth momentum, the Chinese economy will offer you ample ground for development. Now, may I propose a toast to the economic prosperity of the Asian-Pacific region, and to the good health of all of you. Cheers!