Respected Mr. Chairman,
Ladies and Gentlemen,

I am very glad to attend today's seminar at the invitation of Mr. Chairman. Now I would like to brief you on China's economic and commercial relations with the neighbouring Northeast Asian countries from the following two parts:

I. General introduction.
There are five neighbouring countries to the northeast of China, namely, Japan, Republic of Korea (ROK), Russia, Mongolia and Democratic People's Republic of Korea (DPRK). They are the friendly neighbouring countries adjacent to China, and have been keeping close economic and commercial relations with China.
In recent years, China and these countries enjoyed rapid trade development. In 2002, the total trade volume between China and the abovementioned five countries amounted to 159 billion US$, accounting for 25.6% of China's total trade volume, among which, China's export to these countries was 68 billion US$, 21% of China's total export, and China's import was 91 billion US$, 31% of China's total import.
Our main export commodities to these countries are textiles, clothing, shoes, foodstuffs, electronic parts, energy, grain and so on. And the our main import commodities from these countries are machinery and electronic products, steels, fertiliser, petrol-chemical products, woods, leathers and so on.

II. Economic and commercial relations between China and these countries respectively.
1. Sino-Japan economic and commercial relations:
Sino-Japan trade developed from nongovernmental trade.
In 1950s and 1960s, it started with the preliminary stage of nongovernmental trade, which served as forerunner and accelerator for the official contacts. China and Japan signed 4 nongovernmental trade agreements.
In 1960s and 1970s, it came to the development stage of nongovernmental trade, with a feature of half-government and half-nongovernment.
In 1970s and 1980s, it stepped into the interactive development stage of both governmental and nongovernmental trade. In 1972, the normalization of diplomatic relations between the two countries promoted the rapid development of the Sino-Japan economic and trade relations. In early 1980s, Japan became one of China's most important trade partners.
In 1980s and 1990s, it entered the stage of comprehensive development. Since China's reform and opening up, Sino-Japan economic and trade relations faced new opportunities. The two sides cooperated towards a diversified direction of trade, investment, technology and governmental capital cooperation, etc. In 1994, the total trade volume amounted to 48 billion US$. Japan became the largest trade partner of China. In 2002, the total trade volume reached 102 billion US$, accounting for 16.4% of China's total trade. Japan has been our largest trade partner for 9 consecutive years. And China is Japan's 2nd largest trade partner. Japan is the largest supplier of government loan and gratis assistance to China and is one of China's main resource countries in terms of foreign investment and technology. We are mutually important economic and trade partners.
2. Sino-ROK economic and commercial relations:
In 1983, China and ROK began indirect trade through Hong Kong and Singapore, etc. In March 1998, nongovernmental direct trade was initiated step by step. In 1992, we established diplomatic relations, and the two governments signed agreements on trade investment protection, and the establishment of a joint committee of economic, trade and technological cooperation. Cooperation in the fields of trade, investment, labour, technological training, etc, developed very fast.
Bilateral trade developed rapidly. Total trade volume increased to 44 billion in 2002 from 5 billion in 1992, registering an 8 times' increase. At present, ROK is China's 7th largest trade partner.
ROK's investment to China is rapidly increasing and has become one of China's important foreign investment resources. Its investment mainly goes to small and medium sized enterprises, ranging from manufacturing industry like textiles, clothing, electronics and shoes to service industry like catering. Its investment area is mainly the eastern coastal region. In recent years, it gradually expanded to the central and western inland areas of China.
The two sides have conducted different levels of cooperation in the fields of automobile and electronic products, etc.
3. Sino-Russia economic and commercial relations:
The trade relations between China and Russia developed through 4 stages.
From 1992 to 1993, rapid development.
From 1994 to 1996, moderate decline.
From 1997 to 1998, consecutive decline.
Since 1999 till present, on the rise.
In 2002, Sino-Russia trade volume amounted to 12 billion US$, among which, China's export was 3.5 billion US$, registering a 30% increase over that of the previous year. China's import was 8.4 billion US$, registering a 5.6% increase over that of the previous year. At present, Russia is China's 8th largest trade partner. And China is Russia's 6th largest trade partner.
China's export commodities are mainly traditional commodities, such as clothing, shoes, foodstuffs, etc. And China's import commodities are mainly raw materials and electronic products.
In terms of reciprocal investment, our investments are focused on such industries as microelectronics, telecommunication, clothing processing, household electronic appliances assembling, catering trade and wood processing, etc. And Russia's focuses are nuclear electric power, automobile, agricultural machine assembling, chemical industry and building materials, etc.
4. Sino-DPRK economic and commercial relations:
In 1950, China and DPRK started their trade contacts. For a long time, our bilateral trades were mainly fuel, raw materials, and manufacturing goods and materials, etc. Recently, DPRK has been confronted with economic depression, in lack of energy and food. DPRK mainly imports these goods from China. In 2002, the total volume of bilateral trade was 0.74 billion US$, with China's export volume of 0.47 billion US$ and import volume of 0.27 billion US$.
5. Sino-Monglolia economic and trade relations:
In 1991, China and Mongolia signed an agreement on cash trade, ending the 40 years of governmental tally trade. In 2002, the total volume of bilateral trades reached 0.36 billion US$.
At present, China is Mongolia's largest trade partner, and the bilateral trade volume accounts for 1/3 of Mongolian total foreign trade volume.

The above introduction is an outline of China's economic and commercial relations with the five neighbouring northeast Asian countries.
In general, China enjoys favourable economic and trade cooperation with these countries. In particular, Japan, ROK and Russia are respectively on of the 10 largest trade partners of China. We have great potentials for further cooperation. Meanwhile, we need to further our cooperation with these countries. For example, trade commodities between China and Russia are not diversified, and the proportion of high-tech and high-value added products is quite low. And the proportions of Sino- Mongolia and Sino-DPRK trade volume are rather small in terms of the total trade volume.
With the geographic advantage, we will continuously tap the potentialities, and actively explore various cooperation fields, to enhance our economic and trade cooperation to a higher level.
As we know, the Finland-Northeast Asia Trade Association has contributed a lot for promoting the economic and commercial cooperation between Finland and Northeast Asian countries as well as that of China and these countries. I would like to extend my sincere gratitude to you for your long-time hard work.
Let's work closely and build a brighter future for Finland-Northeast Asia trade and economic cooperation in the new century.

Thank you.