Jiang made the remarks in a speech on Wednesday evening local time at a banquet held by the Asia-Pacific Committee of German Business.

Jiang arrived in Dresden, the capital of the Free State of Saxony, at around 10 am local time Thursday.

On the fourth day of Jiang's state visit to Germany, the Chinese delegation was warmly received at the airport by members of the local government and the public, led by Minister-President Kurt Biedenkopf.

The Chinese delegation Thursday visited the Meissen porcelain factory, which has been producing porcelain continuously since 1710.

At Wednesday evening's Berlin banquet, Jiang recalled the development of China's economy. He noted that, thanks to the country's opening-up policy, China's GDP grew by 7.8 percent annually over the past five years and its total volume of exports and imports last year exceeded US$500 billion.

Jiang said that China, as a member of the World Trade Organization, will strictly observe its commitments and gradually open up its finance, insurance, telecommunications, trade and service sectors.

The president also promised to improve China's investment environment and guarantee a fair and effective judicial system.

Jiang said that the Chinese Government welcomed foreign enterprises' participation in economic, scientific and technological co-operation with China. He noted that China has rich human resources and a huge potential market.

Turing to Sino-German economic relations, Jiang said that bilateral cooperation in economics and technology substantially benefits both sides.

Last year, bilateral trade was US$23.5 billion, a year-on-year increase of 19.3 percent. The figure accounted for a third of China's total trade volume with the European Union. There are more than 2,700 German investment projects in China, with a total contracted value of US$13.4 billion.

Jiang said that China is confident of the future prospects of friendly bilateral relations and co-operation.

He added that bilateral cooperation in economics and technology should be further expanded because Germany's trade volume with China is less than two percent of Germany's total foreign-trade volume.

Jiang said that China's strategy of developing its western regions will bring Germany and other foreign countries new opportunities to strengthen economic co-operation with China.

The Chinese president is scheduled to visit the Volkswagen car factory Friday.

(China Daily April 12, 2002)