Respected Chairman Rutanen,
Ladies and Gentlemen:
I am very pleased to be invited to this  “Asia-Pacific and Globalization: Integration Process” Seminar organized by the Asia Society Finland, and have this opportunity to exchange views with you all broadly and deeply on the Asia-Pacific regional cooperation, which is of our common interest.
First, I would like to refer to the challenges of the Asia-Pacific regional cooperation.
Looking into the past, we will find with pleasure that Asia-Pacific region is the one that has experienced the most rapid development in the world in recent years. Since 1980s, the trade in Asia-Pacific region has grown rapidly. Till 1980s, its trade volume has already outnumbered 900 billion US$, accounting for 65.6% of the total trade volume of all regional cooperation. Within the short period of 20 years, Asia-Pacific cooperation has become more and more mature day by day. However, it does not mean that the road of its future cooperation is straight and smooth. On the one hand, from the perspective of the international environment, in recent years, with the increased uncertainties in world economic development, trade protectionism is on the rise, making it still harder to achieve free, fair and equitable trade. Non-traditional security threats have increased, as struggles against terrorism remain both arduous and complicated.  On the other hand, form the perspectives of the internal coordination within Asia-Pacific cooperation; there still exist three tough challenges. Firstly, the economic modes and development levels of all Asia-Pacific countries are different, with a quite widen gap. Secondly, the nations and cultures of all Asia-Pacific countries are diversified and complicated, with different value judgment. In this region, the eastern civilization and the west cultures coexist. Sakyamuni, Confucius, Jesus Christ and Mohammed have influenced the thinking and behavior of the broad masses of the people. Thirdly, there still exist some questions left over by the Cold War period that are not thoroughly settled down and there still remain some partial unstable factors.
To meet the abovementioned challenges, all Asia-Pacific countries have always started form the realities of the region and the requirements of the times, respected the reality of diversity of the region and adhered to the principles of mutual respect and benefit, consensus and voluntarism, to build a model for the regional cooperation.
I would like to mention the Asia-Pacific Economic Cooperation (APEC), a top-level inter-governmental forum for economic cooperation in this region. Its contribution to the Asia-Pacific region and the world at large could be categorized into the following three aspects. Firstly, APEC has always stood at the forefront of regional and global economic development adapted itself to the latest economic situation and characteristics in the region and the world and played an important guiding role in addressing the acute economic problems therein. Secondly, APEC has taken firm steps on the basis of respect for diversity, and helped develop the multilateral trading system in line with the principle of " open regionalism". Thirdly, APEC has developed in a way that reflected the broadest common interests of all its members and adopted more effective cooperation modalities to narrow the gap between its members, and hence enhanced their cohesion.
Apparently, despite the host of problems facing the Asia-Pacific regional cooperation and more that will still crop up unexpectedly in the future, the tide of history in favor of peace and development cannot be reversed, nor will the people of all lands change their yearning for a better life. Peoples of all Asia-Pacific countries want lasting peace and stability in the world, and expect a world that enjoys universal prosperity and sustainable development. In this regard, they are giving full play to their advantages and stepping up coordination and cooperation of the family of nations in order to secure world peace and seek common development.
As a significant member of the Asia-Pacific region, China has an unshirkable duty. And the second question I would like to refer to is the unique status and role of China in the Asia-Pacific region. There is an old saying in China, “己欲立而立人，己欲达而达人”. It means that one that wants to develop and improve himself will develop and improve the people around him as well. In light of the challenges posed upon the Asia-Pacific regional cooperation, China has been striving hard to give full play to its advantages and intensify its cooperation with the international community, to make its own contribution to the development and prosperity for the Asia-Pacific region.
Firstly, in terms of the economic cooperation, China has made outstanding achievements since its implementation of opening up and reform policy 20 years ago. The political situation is stable. The society is peaceful. And the economy is growing rapidly. China has settled the question of the food, clothing, shelter and transportation of nearly 1.3 billion people, and realized the historical leap from poverty, dressing warmly and eating one’s fill, to the well-off society.
Nevertheless, China has a huge population and a poor grounding in economic construction, with 30 million people still suffering from poverty and backwardness. We are now working hard unswervingly. And it is estimated that in the middle of this century, China will reach the level of the current medium developed countries. In this regard, the opening up and reform policy will be the basic national policy in the long run and our core task will be the economic construction. China has actively participated in the economic cooperation in the Asia-Pacific region, and has worked along all other countries to promote the regional trade liberalization and investment facilitation.
It is worth mentioning that China and other Asian countries enjoy a very close economic integration at present. In 2000, the trade volume of China and other Asian countries and districts outnumbered 250 billion US$, accounting for more than 50% of China’s foreign trade volume. More than two-thirds of the overseas direct investment in China was from Asian countries and districts. China will also endeavor to establish the Free Trade Zone with ASEAN countries by 2010.
China is a responsible country. After the outbreak of the Asian financial crisis, neither did China stand by with folded arms, nor did China take advantage of the situation. On the contrary, China solemnly promised that RMB would not devaluate and made great contribution to support Asia-Pacific countries to overcome the crisis as soon as possible. In recent years, the healthy and stable development of China’s economy has played a significant role to the development of the Asian economies. It will not only facilitate China’s increasing investment in the Asia-Pacific region, and will also help enhance the world’s confidence in the Asia-Pacific region. A major responsible developing country in the region will never make things worse worst in the regional economic development, but will make things better best.
In December 2001, China officially acceded to the World Trade Organization (WTO). The past 2 years have seen a substantial amount of work on the part of China to reduce the general level of tariffs, remove non-tariff barriers, straighten out and amend foreign-related economic laws and regulations, and further open its service sector. China will make good on its promises, deepen reforms and open still wider to the outside world. China will take an active part in the new round of multilateral trade negotiations and continue to play its constructive role in seeking, together with other parties, a balance of interests between the developing and developed members in the multilateral trading system.
   In the past two years, China, like other countries, has been confronted with multiple difficulties in development due to readjustments in world economy and changing demands on the international marketplace. To boost economic growth, the Chinese Government has opted for stimulating domestic demand by implementing a proactive fiscal policy and a prudent monetary policy, accelerated economic restructuring and made vigorous efforts to promote reforms in various sectors and greater openness to the outside world. In spite of the influence of SARS in the first half-year, China's economy has maintained a sustained, rapid and sound growth since the beginning of the year, and the year's growth rate is expected to be over 7 per cent. A world economic recovery serves China's development, and vice versa.
   Secondly, in terms of social and cultural exchanges, the rise of China is not merely an economic phenomenon, but implies a profounding cultural connotation as well. For a long time, China has cultivated the traditional culture of longing for peace and treating neighbors with goodwill and tolerance. Many of the Asia-Pacific countries are deeply influenced by the Confucianism. And China is the place of origin of the Confucianism. Its influence on China is deep-rooted and long-standing. The core spirit of the Confucianism is “和为贵” . It means that peace is most precious. The ancient Chinese thinker also put forward the idea of “亲仁善邻，国之宝也”, which emphasizes that to treat the neighboring countries with goodwill is the magic weapon to rule the country. All that has demonstrated that China has always been a country longing for peace and treating neighboring countries with goodwill. China also holds that the diversity of the civilizations of all countries is the basic characteristics of the human society, and the motive force of the progress of the human civilizations. China emphasizes the recognition of the reality of world diversities. All civilizations and social systems should coexist in the long term. They should learn from each others’ strong points to offset their weaknesses in competition and comparison, and pursuing the common development in the process of seeking common ground while putting aside the differences.
Thirdly, in terms of the historical approach, China has suffered a lot from the invasion and humiliation of the foreign powers in the modern times, from the gunshots of the Opium War, the destruction of the Imperial Garden, to the Nanjing Massacre. This is a history filled with grief and indignation. The Chinese nation thus has deep love for peace. We cherish peace and want to safeguard peace. Since its founding, China has always been dedicating herself to the peace and stability of the Asia-Pacific region and made her own contribution. China has solemnly promised the “three No’s” at a very early stage. Namely, China will never seek hegemony, will never join in any military groups, and will never seek spheres of influence. The late Premier Zhou Enlai put forward the five principles of peaceful coexistence and actively initiated the spirit of the Asian-African Conference in Bandung. Deng Xiaoping proposed the attitudes to seek common development while putting aside disputes on the South-China sea issue. China has proposed the new security concept of mutual trust, mutual benefit, equality and cooperation, and holds that all countries, no matter big or small, are equal and shall never interfere into each others’ internal affairs.  All countries are to respect each other, establish mutual trust and expand cooperation. China will certainly keep its promise. And we are earnestly practicing our words. A country with the independent foreign policy of peace will certainly promote the peace and security of this region and the world at large.
The overall situation in the Asia-Pacific region now is stable. Regional cooperation has gained satisfactory development and APEC and 10+3 have shown themselves with outstanding achievements in the tide of regional cooperation. Safeguarding peace, seeking development and promoting cooperation has become the principal policy of most of the countries in this region. After years of hard efforts, China has established the new good neighborliness based on the mutual trust in the political field with all Asia-Pacific countries, especially those neighboring countries, and actively conducted dialogue and cooperation with them. The key to our success lies in our ability to respect diversity in light of the varied interests and concerns of the members, seeking common grounds while shelving differences.  Our world is a diverse and colorful place.  Even more so is the Asia-Pacific region.  Respecting the historical and cultural diversity in the members and their different paths or models of development is the important foundation for us to achieve common development and prosperity.  The mingling and mutual influencing of different cultures throughout history have provided the engine for the development of human civilization.  We should follow the law of history, conduct inter-cultural exchanges more vigorously and draw upon each other’s strength more consciously so as to ensure common progress of all human societies.
In short, we are full of confidence in the future Asia-Pacific regional cooperation. I believe, with the joint efforts of all Asia-Pacific countries, the prospects of all Asia-Pacific countries will be more promising and the life of the peoples will more prosperous.
Thank you!