www.china.org.cn
November 2, 2001



China-US Relations in the New Century

The following is the speech delivered by Chinese ambassador to US Yang Jiechi at a luncheon in Washington.

Mr. Chairman,

Ladies and gentlemen,

Thank you, Mr. Ryan, for your warm introduction and also for the wonderful job your Speakers Program has done in putting this function together.

It gives me great pleasure to speak to such a distinguished audience, many of whom I have known for years. Sharing with you my views on China-US relations is indeed an important thing to do.

China-US relations have been in the spotlight for most of the past six months. Though the relations experienced some difficulties, both the Chinese and American sides have expressed desire to improve ties, and have taken concrete steps, resulting in an obviously improved situation.

The telephone conversation between President Jiang Zeming and President Bush earlier this month is of major significance and should serve as our guidance for further improvement and development of ties in the future.

Not long ago, the two countries reached a broad consensus on the remaining issues concerning China's entry into WTO. We are now joined in Geneva by the other countries in a final push to get the job done so that China can become a member of this global trade body very soon. The benefit for doing so is self-evident.

We welcome President Bush's decision to renew China's NTR status, which is mutually beneficial. Last week, the decisive vote in the House of Representatives against an opposite attempt shows once again that vision and common sense will ultimately prevail.

In a couple of days, Chinese Foreign Minister Tang Jiaxuan and US Secretary of State Collin Powell will hold their first meeting in Hanoi during the ARF Foreign Ministers' meeting. Secretary Powell will then visit China on July 28 and 29. His meetings and talks with the Chinese side will enhance mutual understanding, further improve the atmosphere of bilateral relations and, more importantly, pave the way for the summit between President Jiang and President Bush at the Informal APEC Leadership Meeting in Shanghai in late October this year, and President Bush's subsequent visit to China. The summit and the visit, without any doubt, will be the highlight of China-US relations this year, setting the course for future development of bilateral relations in the new century.

Ladies and Gentlemen,

When looking back at our relations in the first half of the year, one could not but draw a conclusion that a healthy and stable China-US relationship is of vital importance to both nations and the world at large. Despite the differences between them, China and the United States have a great deal of important common interests.

As the world's largest developing country and the largest developed country, and permanent members of the UN Security Council, our two countries are faced with a common responsibility of promoting peace, stability and prosperity in the Asia-Pacific region and the world as a whole.

The two countries also share a stake in addressing such global concerns as alien smuggling, drug trafficking, climate change, and the spread of disease. Our cooperation in these areas has a direct impact on the welfare of the whole world.

Between us, mutually beneficial exchanges in such fields as culture, education, environment and energy have expanded steadily, thus enhancing the understanding and friendship of our two peoples. For instance, according to incomplete statistics of China's educational departments, the number of Chinese students studying in the US has reached 120,000 since 1978, while the number of American students studying in China exceeded 10,000.

Economically, we are highly complementary. US export to China has been growing rapidly, with an average annual rate of 16% in the last decade. During the first five months of this year, according to Chinese statistics, our two-way trade volume reached $30.4 billion. It is worth noting that US export to China grew by 20.9%, rising faster than its import from China. And US direct investment in China now stands at $30 billion and more.

In this increasingly interdependent world, China-US economic cooperation goes beyond our bilateral realm. China will host the APEC meeting this October in Shanghai. We want to cooperate with other APEC members, including the United States, to achieve substantive results from this meeting. We hope that the Shanghai meeting will contribute to a vibrant APEC process, promoting the economic growth of the region and facilitating a sound development of Asia-Pacific economic partnership. Furthermore, both China and the United States support the starting of a new round of global trade talks as soon as possible.

Obviously, I can show you a longer list of our common interests. But I think it is relevant for me to move on to share with you some information about China's recent development. As you know, China has pursued a policy of reform and opening up for more than two decades, which has brought about great economic and social progress.

China has enjoyed a sustained GDP growth rate of 9% for twenty-odd years. In spite of the current world economic slowdown that dampens exports, China has succeeded in achieving a 7.9% GDP growth rate in the first half of the year, mainly by expanding domestic demand and increasing investment in infrastructure. The Chinese government has taken a series of measures ranging from lowering interest rate to issuing more treasury bonds in order to stimulate the economy. The project of developing China's vast western part is also under way, injecting more vitality into its economy.

As a developing country, we give top priority to lifting our people's living standards and the nation's development. China has succeeded in feeding 22 percent of the world's total population with less than 10 percent of the world's arable land. Over the past twenty years, the number of people that have been lifted out of poverty in China amounts to almost the entire population of the United States. China has secured steadily improved living standards for its citizens while maintaining social stability, national unity and ethnic harmony. The fact is that the Chinese people are now living better and living longer, and enjoying far more freedom and human rights than before. This has been the conclusion drawn by most visitors to China.

While I am optimistic about China's future and the tremendous potential for China-US cooperation, I don't mean that there are no sticking points in the relations between the two countries. To China, the issue of biggest concern is the Taiwan question which, if not properly handled, will cause serious harm to China-US relations, because it is an issue that touches the sentiments of the 1.3 billion Chinese people and bears on China's sovereignty, territorial integrity and national reunification. History has shown that the proper handling of the Taiwan question holds the key to a stable China-US relationship. Both the Chinese and American sides should base themselves on the principles enshrined in the three China-US Joint Communiques. Over the years, the US administrations, both Republican and Democratic, have all undertaken to abide by these principles and pursue a one China policy. We hope that the US side will fulfill its commitments in deeds. Our position on resolving the Taiwan question remains unchanged. We will continue to adhere to the basic policy of "peaceful reunification and one country, two systems". I am convinced that a prosperous and reunited China also serves US interests, as it will enhance peace, security and stability in the Asia-Pacific region and the world at large. I believe more Americans will see things that way.

Ladies and Gentlemen,

China is a peace-loving country and has a long way to go before its per capita income is anywhere near that of a developed country. China has never, nor will it ever, seek any kind of dominance in a region or in the world. We believe that all countries, big or small, rich or poor, strong or weak, are equal members of the international community. We wish them all well. For it is in the interest of my country and, in our view, that of the United States too, for them to enjoy peace, stability and prosperity.

Let me point out, China wants to expand its cooperation with the United States in the Asia-Pacific region.

People still remember what the situation was like when the East Asian economic crisis struck a few years ago. China acted in a most responsible manner on its own, and in cooperation with the United States and other countries. In fact, as the Chinese economy grows, China-US cooperation in economic field across the Asia-Pacific region can only expand to the benefit of the region as a whole.

As East Asia is confronted with new economic challenges and difficulties, statistics show that export to China from many countries in the area is increasing by a large margin. It surged by more than 20% in 2000 over the previous year, and then more than 10% during the first quarter of this year. Nowadays, many countries in the area have come to regard China as one of their leading foreign markets.

With its accession into WTO forthcoming, China is redoubling its efforts to deepen reforms and prepare for the WTO entry. From this August 1 onward, China will gradually remove price controls on 128 items, leaving only 13 in the hands of the government. China is expected to import US$1.4 trillion worth of goods and technologies in the next five years. All this will provide abundant business opportunities for the Asia-Pacific region and for China-US cooperation.

About regional security issues, I think that China and the US cooperating to prevent nuclear proliferation and maintain stability in some areas is a fact known to all. The ongoing ARF meeting is another forum where we can deepen our cooperation. China's annual defense spending, despite being greatly exaggerated by some so-called experts, remains less than 10% of that of the US. The new concept of security we advocate now at the ARF stresses that countries should take measures to enhance political trust and expand economic cooperation so as to achieve comprehensive security. China is willing to have dialogue with all the countries in the region including the US and carry out productive cooperation with them.

While on this topic, may I point out that Asia-Pacific region is already a place of great diversity. Countries there want it to remain so. And they would like to see nothing less than good relations and cooperation between China and the US. They firmly believe that this serves the best interests of regional and world peace, stability and prosperity.

Ladies and Gentlemen,

I would like to mention Beijing's successful bid to host the 2008 Olympic Games. Over the past week or so, I have received lots of congratulatory phone calls and messages from Americans of all walks of life. I feel in their responses a strong underlying conviction that China deserves fair treatment and Beijing's successful bid is also good for China-US relations. We are indeed very thankful for all the support and kind wishes from people all over the world. We are confident that with concerted efforts from all sides, Beijing will surely make the 2008 Olympics one of the most magnificent and memorable sports games in history.

This is indeed an important year for China, and for China-US relations. As we enter the 21st century, we all feel a heavy responsibility on our shoulders. China and the United States may disagree on some things. But there is more that binds us than divides us. We should approach our bilateral relations from a strategic and long-term perspective. I do believe that so long as we adhere to the principles enshrined in the three China-U.S. Joint Communiqu¨¦s, and work together to enhance mutual understanding and the bilateral relationship in a constructive and cooperative spirit, we will be able to advance China-U.S. relations to a new high in the 21st century.

Thank you very much.

(Chinadaily.com.cn 07/25/2001)

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