Address by Premier Wen Jiabao at the Second China-Central and Eastern Europe Economic and Trade Forum

(Warsaw, Poland, April 26, 2012)

Returning to Poland, a fascinating country with a long history, after 25 years is a great and refreshing experience for me. The Poles are an industrious and talented people. Through your hard work, you have turned Poland into a vibrant and prosperous country. Having successfully countered the international financial crisis, Poland enjoys steady economic growth, financial stability and rising international standing and influence. As Poland's strategic partner, we are truly glad to see what you have achieved.

The Chinese and Poles are good friends and good partners, and China-Poland relations have registered good progress in recent years. Yesterday, I had comprehensive, in-depth and fruitful talks with Prime Minister Donald Tusk, and we reached the following important agreement on deepening friendship and cooperation between our two countries: China and Poland will establish a regular meeting mechanism between our prime ministers to strengthen high-level exchanges. An inter-governmental committee will be set up to coordinate cooperation in various fields. A medium- and long-term plan for promoting economic cooperation and trade will be drawn up. A steering committee for industrial cooperation will be set up to advance cooperation in investment, infrastructure, hi-tech and new energy sectors and promote balanced growth of two-way trade to double it in five years. And cultural, educational, tourism, youth and local exchanges will be strengthened. These steps will create fresh and strong impetus to the growth of China-Poland strategic partnership and produce an extensive and profound positive impact on this partnership.

I attended the first China-Central and East European Countries Economic and Trade Forum in Hungary last June. The political and business leaders of the European countries attending the forum expressed hope to expand cooperation with China at the regional level. I fully shared their hope. Today, our hope has been met, as we are meeting here in the beautiful city of Warsaw to discuss ways to enhance our business ties. I wish to extend heartfelt thanks to the Polish Government for being a great host, and pay my respects to public leaders in Central and East European countries who have long been committed to boosting friendly cooperation with China.

Economic cooperation and trade is the most dynamic and promising area in China's relations with Central and Eastern Europe. Two-way trade rose from only $4.3 billion in 2001 to $52.9 billion in 2011, growing at an average annual rate of 27.6 percent. Our trade has kept increasing despite the impact of the international financial crisis. China's import from Central and East European countries has registered an average annual growth of 30 percent. Mutual investment is increasing. Chinese companies have invested in chemical industry, machinery, household appliances, telecommunications, auto manufacturing and new energy in the region. They are also making investment in new areas such as agriculture, financial sector, science and technology. All this has contributed to local economic growth and employment. Our cooperation in infrastructure development has begun to bear fruit. For instance, the Zemun-Borca Bridge on the Danube now stands as a landmark in Belgrade.

People-to-people and cultural exchanges have always been a major driving force for our relations. There are 37 pairs of sister provinces and 58 pairs of sister cities between China and Central and Eastern Europe. And there are 58 Confucius Institutes and Classrooms in Central and East European countries to meet the needs of growing numbers of Chinese language learners. In 2011, 230,000 people from Central and East European countries visited China, and nearly 75,000 Chinese tourists visited Central and East European countries on the first stop of their overseas trips. Such exchanges have deepened mutual understanding and friendship between our peoples.

There are differences between China and Central and East European countries in terms of social system, national conditions and culture. But they will not change our shared desire for and firm conviction in growing our friendly relations. As long as we continue to respect each other, treat each other as equals and pursue mutually beneficial cooperation, we can certainly strengthen our traditional friendship and achieve common development.

The global economy has begun to improve since the beginning of this year, but the recovery is still fragile and is fraught with uncertainties. China and Central and East European countries should join hands to meet the challenges, as this serves the fundamental interests of both sides. China stands ready to deepen its friendly relations with Central and East European countries with utmost sincerity and boost our practical cooperation to benefit our peoples.

We should increase the scale of cooperation. China will work together with Central and East European countries to open markets wider to each other and raise two-way trade volume to $100 billion by 2015. China appreciates the concern of Central and East European countries about trade imbalance and is ready to import more goods from Central and Eastern Europe and facilitate participation in expos and trade fairs in China by companies in the region. China will send trade and investment promotion missions to Central and Eastern Europe in the near future and encourage Chinese companies to invest in the region. We hope the host countries will give support and assistance to them.

We should expand areas of cooperation. We should pursue cooperation in all areas including trade, investment, infrastructure and tourism. Central and East European countries have a huge demand for infrastructure development. Chinese companies have mature technologies and expertise in project planning, design and construction and have price advantages. Our cooperation thus has good prospects. China proposes the establishment of an expert advisory committee on the construction of transportation networks. Countries interested in it may join the committee on a voluntary basis to explore the possibility of building highway or railway demonstration networks in Central and Eastern Europe through joint venture, joint contracting and other forms. China also proposes to establish a tourism promotion alliance between China and Central and East European countries to promote each other's tourist products, jointly develop tourist routes, and explore the possibility of opening more direct flights. We welcome tourist agencies from Central and Eastern Europe to attend the China International Tourism Mart to be held in Shanghai this autumn. China will co-host a fair to promote tourist products from China and Central and East European countries.

We should improve cooperation mechanisms. The two sides should continue to hold business forums and convene leaders' meetings. China will set up a secretariat for promoting cooperation with Central and East European countries. The secretariat will maintain consultation and coordination and assist in implementing agreements reached between the two sides. Trade and investment promotion institutions of the two sides should jointly set up business information platforms with a focus on facilitating cooperation between small and medium-sized enterprises. China is ready to sign local currency swap agreements with more Central and East European countries, settle cross-border trade with local currencies, and both sides may set up bank branches in each other's countries.

We should strengthen the foundation of cooperation. China proposes to host a forum on cultural cooperation between China and Central and East European countries next year and that more cultural festivals be held in each other's countries. We should enhance education policy dialogue, promote inter-university exchanges and expand cooperation in language teaching. We should encourage radio and TV media organizations of the two sides to have program and personnel exchanges and produce documentaries jointly. We should also encourage sister provinces and cities to take full advantage of such ties to enhance cooperation at local level. Young people will inherit and carry forward our friendship. China proposes to host the first forum of young political leaders of China and Central and East European countries next year and welcomes participation by youth leaders from both sides.

To boost practical cooperation with Central and East European countries, the Chinese Government has decided to set up a $10 billion special credit line, including a certain amount of concessional loans to support cooperation projects in infrastructure, high and new technologies and green economy. It will set up a China-Central and Eastern Europe fund for investment cooperation, and our goal is to raise $500 million for the fund in the first stage. China will, in light of actual conditions and needs of Central and East European countries, encourage Chinese companies to establish an economic and technological zone in each country in cooperation with the host country in the next five years. In the next five years, China will provide 5,000 scholarships to Central and East European countries, invite 1,000 students from these countries to learn Chinese in China, and send 1,000 Chinese scholars and students to Central and East European countries. China will establish a research fund on relations between China and Central and East European countries and contribute 2 million yuan ($317,000) every year to the fund.

China and Central and East European countries have entered a promising spring season with important opportunities to rapidly grow our friendly relations. As we work hard to cultivate the seeds we have sowed, we will certainly reap a bumper harvest. The eminent Polish scientist Madame Curie said that if one can place his life in accord with his dream, and press ahead with a free spirit, constant courage and honesty, one can realize ultimate beauty and goodness. Let's join hands and write a new chapter in the friendly relations between China and Central and East European countries.