Speech by Wen Jiabao, Premier of the State Council of the People's Republic of China, at the China-ROK Business Luncheon (Seoul, ROK, April 11, 2007)

I am pleased to attend the China-ROK business luncheon. Let me take this opportunity to express my respect and appreciation to you, business representatives from both China and the ROK, for what you have done over the years to strengthen economic and trade cooperation between the two countries and for enhancing friendship between the two peoples. I also want to express my heartfelt thanks for your warm hospitality.

This is my first visit to the Republic of Korea, a beautiful and richly endowed country. During my short visit, I have been greatly impressed by the thriving development of the ROK and its hardworking and enterprising people.

More importantly, I have keenly felt their goodwill towards the Chinese people. China and the ROK are neighbors with similar cultures and a long history of friendly exchanges. Kim Gyo Gak, Prince of Silla, studied Buddhist classics on Mount Jiuhua in China during the Tang Dynasty, and was later regarded as the reincarnation of Ksitigarbha Bodhisattva. Choi Chi Won, a writer of Silla, lived and worked in China's Yangzhou for a long time, and was known for his Gyewon Pilgyeong. Hur Kyun, a renowned novelist of the Choson Dynasty, wrote the following lines when bidding farewell to a Chinese friend during the Ming Dynasty, "Countries are different, but human nature is the same. All of us are brothers, why separate us by nation? We treat each other with full sincerity, which is witnessed by the moon." These examples fully reflect the profound friendship between the two peoples.

This year marks the 15th anniversary of the establishment of diplomatic relations between China and the ROK and has been named a Year of Exchange. In the past 15 years, guided by the principles of mutual respect, equality, mutual trust, mutual benefit and win-win cooperation, we have boosted friendship in all fields and expanded economic cooperation and trade, delivering real benefits to the two peoples. Bilateral trade has grown 26 times, up to US$134.3 billion in 2006 from US$5 billion in 1992, making the two countries important trade partners. Mutual investment is growing. The ROK had set up over 30,000 companies in China with a total actual investment of US$35 billion by the end of 2006. More Chinese companies are also investing in the ROK. People-to-people exchanges are flourishing. The number of ROK residents in China exceeded 500,000 in 2006, and more than 5 million mutual visits were made last year. There are nearly 800 flights between the two countries every week. One of three foreign students studying in China is from the ROK. On our part, 24,000 Chinese students are studying in the ROK.

Business ties are a major component of our relations. To strengthen such ties is the shared desire of the two peoples. China and the ROK have uniquely favorable conditions and a huge potential for building strong business ties including geographical proximity and convenient traffic links. With the ROK's strength in technology and managerial expertise and China's abundant labor resources and large market, the Chinese and ROK economies have much to offer each other. We need to expand the scale, broaden the scope and upgrade our trade ties. To accomplish this goal, I propose that we take the following steps:

First, Expanding Trade. We should implement the Joint Research Report on the Mid- and Long-Term Vision for China-ROK Economic Cooperation and Trade, improve the mechanism of economic cooperation, trade and dialogue, foster a more enabling and efficient trading environment to meet the target of US$200 billion of annual trade at an early date. We should continue to improve the makeup of our trade and increase the trade of agricultural and hi-tech products and trade in services while maintaining the fast growth in trade of machinery and electronic products. The Chinese Government appreciates the efforts made by the ROK to reduce China's trade deficit. China is ready to open its market further to the ROK and increase its imports. We also hope that the ROK will further lower its import barriers to facilitate China's export to its market.

Second, Promoting Mutual Investment. We should remove obstacles to investment between our companies and foster an enabling investment environment. China hopes that ROK companies will shift the focus of their investment in China from general manufacturing to agriculture, high-tech and service industries, and from processing and assembly to R&D and design in manufacturing. The Chinese Government welcomes the participation of ROK companies in infrastructure development and ecological improvement in western China, in revitalization of the old industrial bases in northeast China, and in the restructuring of China's state-owned enterprises. The Chinese Government also encourages strong and reputable Chinese companies to invest in the ROK and supports them in this effort.

Third, Enhancing Scientific and Technological Cooperation. The ROK, in the process of industrialization, has developed advanced technologies with proprietary intellectual property rights through introduction, digestion, absorption and innovation. China hopes to draw on ROK's advanced experience and strengthen technological exchanges and cooperation with it in environmental protection, energy conservation, communication, logistics, hi-tech and IPR protection, so as to achieve sustainable economic development for both countries.

Fourth, Promoting China-ROK Joint Study on Establishing a Free Trade Area (FTA). Establishing a China-ROK FTA is important to the long-term growth of economic and trade ties between the two countries. A China-ROK non-governmental joint study on FTA has been successfully concluded and a government-industry-academia joint study on FTA has been launched and initial results have been produced. We hope that both sides will accelerate work to produce a win-win proposal at an early date, so as to pave the way for the early establishment of a FTA. Cooperation and development require a peaceful and stable external environment. In today's Northeast Asia, there are still destabilizing factors and regional cooperation needs to be enhanced. China and the ROK should make vigorous efforts to uphold peace and stability and advance common development in the region. The countries in the region should, on the basis of mutual understanding and mutual trust, find fair and reasonable solutions to issues left from the past, resolve disputes and address each other's concerns in a proper way, advance regional cooperation and strive to build a new and harmonious Northeast Asia.

China is the largest developing country in the world, and it is committed to the path of peaceful development. This is not an expedient. Rather, it is a long-term and strategic foreign policy China follows. It is determined by the reality of China's underdeveloped productive forces and weak economic foundation, and by its history, culture and traditions that value credibility, harmony and peace. It is also a solemn commitment China has made in keeping with the global trend. In pursuing peaceful development, we will, on the domestic front, continue to deepen reform and open further to the outside world, focus on economic development, ensure all-round, coordinated and sustainable development and strive to build a harmonious society.

Internationally, we will continue to pursue an independent foreign policy of peace and the opening-up strategy for mutually beneficial and win-win cooperation, and work with other countries to build a harmonious world of enduring peace and common prosperity. A more prosperous and open China will bring huge opportunities to the world and particularly to its neighbors and make greater contribution to peace both in our region and in the world.

My brief visit to the ROK has covered much ground and has been highly productive. There is a bright future for China-ROK cooperation. This is what has impressed me most during this visit. I hope that the business communities of both countries will seize this good opportunity and work in partnership to write a new chapter of China-ROK economic cooperation and trade.

(China.org.cn)