Hu Jintao, President of the People's Republic of China, Addresses the APEC CEO Summit (Sydney, Australia, September 6, 2007)
 It gives me great pleasure to meet you here in this beautiful city of Sydney. The topic we are addressing today, namely, "Strengthening our Community: Building a Sustainable Future" is a highly important one as it concerns the development of all APEC members and indeed, all of mankind.

The world economy is undergoing profound changes. Economic globalization is gaining momentum; rapid progress is being made in science and technology; and worldwide industrial relocation and the flow of productive factors are accelerating. All of these offer us rare development opportunities. At the same time, problems such as the growing imbalances in the world economy, rising trade protectionism, mounting pressure on energy resources and the increasingly acute issue of climate change pose grave challenges to all countries and regions which are endeavoring to build a sustainable future. How can we build a sustainable future in the face of both opportunities and challenges? This is an issue that deserves close consideration and a serious answer. Here, I would like to offer my candid views on this issue.

First, promoting balanced world economic growth is an important basis for building a sustainable future. As economic globalization deepens, imbalances in the world economy have affected the rational allocation of global resources and aggravated global economic structural tensions, thus posing the biggest potential danger to the sustained and stable growth of the world economy. We should take this issue seriously. All countries should, based on their respective national conditions, expand domestic demand, reduce fiscal deficits, accelerate structural adjustments and deepen institutional reforms. They should open markets, enhance strategic dialogue and coordination on macro-economic policies and work to make the international economic order more equitable so as to create the conditions for ensuring the balanced growth of the world economy and for future sustainable development.

Second, establishing a sound multilateral trading system is a primary guarantee for building a sustainable future. A fair, open, equitable and non-discriminatory multilateral trading system contributes to the sustainable growth of the world economy and international trade and serves the interests of all. The WTO Doha Round negotiations are now at a crucial juncture. We must say no to trade protectionism, eliminate trade barriers and move the Doha Round negotiations towards a comprehensive and balanced outcome at an early date. The major developed members of the WTO should make efforts for the successful conclusion of the negotiations by demonstrating more sincerity and taking the lead in showing more flexibility on key issues such as reducing agricultural subsidies and tariffs. All parties should work to ensure that the Doha Round will attain the goal of a development round and that developing members can truly benefit from it.

Third, ensuring a stable energy supply is a major factor contributing to building a sustainable future. A sufficient, secure, economical, clean and predictable energy supply is essential to sustaining the steady growth of the world economy. The international community should pursue a new approach towards energy security that calls for mutually beneficial cooperation, diversified development and ensuring energy supply through coordination. We should work together to stabilize and improve the international energy market, curb speculative activities, step up scientific and technological R&D and exchanges to raise efficiency and develop new energies. An equitable technology transfer system should be established to help all countries, developing countries in particular, use energy in a more efficient, economical and convenient way.

Fourth, maintaining a sound natural environment is the key condition for building a sustainable future. Climate change has become an issue of global concern, fully showing that development and the environment are inextricably interconnected. Climate change is an environmental issue. But ultimately, it is also a development issue. We should, within the context of sustainable development, uphold the United Nations Framework Convention on Climate Change and its Kyoto Protocol as the core mechanism and the main avenue of cooperation, follow the principle of "common but differentiated responsibilities" and tackle climate change proactively through extensive international cooperation. We should upgrade technologies, ensure that production and consumption meet the requirement of sustainable development, promote "green" growth, and develop circular economies to protect our domestic and the global environments.

Fifth, advancing scientific and technological innovation and education is an important driving force for building a sustainable future. Ultimately, economic growth and prosperity can only be achieved by acquiring knowledge and especially by making scientific and technological advances. We should pursue scientific and technological innovation as a matter of strategic priority in carrying out international cooperation, expand and deepen such cooperation and make new progress in scientific and technological innovation. Human resources are the key to scientific and technological innovation and education provides the basis for this. We should increase input in education, enhance educational cooperation and intensify training to provide strong human resources and intellectual support to all countries, especially developing countries, in their development, and inject new vitality into world economic growth.

Since China adopted the policy of reform and opening up 29 years ago, its economy has maintained steady growth, with an average annual rate of over 9 percent. In the first half of this year, China's GDP increased by 11.5 percent; its total retail sales of consumer goods rose by 15.4 percent; total imports and exports by 23.3 percent and net overseas direct investment grew by 12.2 percent. As has been shown, China's sound and steady economic growth has not only benefited its 1.3 billion people, but also offered enormous business opportunities to other countries and has promoted the growth of the world economy.

At the same time, we are keenly aware that China still remains the largest developing country in the world with its huge population, weak economic starting point, uneven development and a low living standard for many of its people. There are still some pressing institutional and structural problems which constrain China's economic development and these need to be addressed. In particular, there is imbalance in international payments, the pressure on resources and the environment is mounting, and there is an urgent need to conserve energy and cut the discharge of pollutants. We still need to make an arduous effort to ensure that China's economy keeps growing at a steady and fairly fast pace.

The Chinese Government attaches great importance to sustainable development. It calls for scientific thinking on development that puts people first and promotes comprehensive, balanced and sustainable development. It is working hard to achieve sound and fast economic and social development. China will continue to follow the path of a new type of industrialization that is science and technology-driven, cost-effective, resource efficient, less polluting and taps the full potential of its human resources. We will speed up the readjustment of the economic structure and change the pattern of economic development. We will quicken the pace of developing a circular economy and build a resource efficient and environmentally friendly society. We will ensure that the ways of production and consumption meet the requirements of sustainable development. We are working to promote the sustainability of the eco-system and socio-economic system as well as advance comprehensive economic and social progress for the benefit of our entire people.

Since its accession to the WTO, China has honored its commitments in good faith. It has adjusted its trade policy in keeping with WTO rules. In the five-year transitional period, China drastically cut its average tariff, dropping from 15.3 percent upon accession to the present 9.9 percent. The level of openness of its service trade sector is approaching that of developed countries, and this has made China one of the most open service markets in the world. China will continue to implement a win-win opening-up strategy and support the establishment of a fair, open, equitable and non-discriminatory multilateral trading system. We are committed to pursuing development in an open environment and to achieving common prosperity for all countries through mutually beneficial cooperation.

China takes an active part in regional economic cooperation and promotes trade and investment liberalization and facilitation in the Asia-Pacific region. China has concluded free trade agreements with ASEAN, Chile and Pakistan. It is now conducting negotiations on a free trade area with Australia, New Zealand and Singapore, and conducting feasibility studies with India and the Republic of Korea on free trade areas. We are ready to forge closer business ties with other APEC member economies and non-APEC countries and regions on the basis of equality and mutual benefit.

The growth of international trade has benefited all countries. China's enormous domestic demands and vast domestic market are driving its economic growth. China does not seek a large trade surplus. It will continue to transform the pattern of trade growth, actively increase imports, and strengthen protection of intellectual property rights to ensure coordinated and balanced growth of imports and exports and contribute to the sustainable growth of global trade.

China takes the quality and safety of its exported products very seriously and follows a highly responsible approach towards them. From product manufacturing to transportation and import and export, we are making every effort to ensure product quality and safety. We are enhancing relevant legislation, law enforcement, supervision and regulation. China is willing to step up cooperation in product quality and safety with other parties and increase exchanges and consultation to improve product quality and safety in international trade.

China always takes a responsible position regarding climate change. The Chinese Government has formulated and released a national program on addressing climate change and has taken a series of steps, including enhancing energy efficiency, improving our energy mix, strengthening environmental protection, slowing population growth and improving the legal framework. It has set targets for bringing down energy consumption per unit of GDP by 20 percent, cutting the total discharge of major pollutants by 10 percent and increasing forest cover from 18.2 percent to 20 percent between the end of 2005 and 2010. China will increase exchanges and cooperation with other countries to jointly tackle global climate change.

Common development is what China pursues in taking part in Asia-Pacific cooperation. I am convinced that if we seize the opportunity, deepen our cooperation and strengthen our community, we can certainly build a sustainable future for the Asia-Pacific region.