(Harbin, China, July 28, 2012)

Today, personnel from across the Straits are gathering along the beautiful Songhuajiang River to hold the 8th Cross-Straits Economic, Trade and Cultural Forum and discuss important issues related to the peaceful development of our cross-Straits relationship. I am pleased to have been invited to this forum, where I've met many old and new friends. First of all, I'd like to express warm congratulations on behalf of CPC Central Committee and General Secretary Hu Jintao on the convening of this forum and also extend sincere greetings to all of you present here today.

The Cross-Straits Economic, Trade and Cultural Forum were first proposed by leaders of the Communist Party of China and Chinese Kuomintang in 2005, and since then we have already had seven. It has become an important platform for parties and personnel of all walks of life across the Straits to exchange ideas and reach consensus. It has played a pioneering role in promoting the cross-Straits relationship. The past seven forums closely focused on big pragmatic topics of common concern to compatriots across the Straits, putting forward many realistic and practical suggestions, most of which have been adopted by relevant departments on both sides as tangible measures and policies. These agreements have greatly contributed to the development of the cross-Straits relationship. The theme of this forum is: Deepening Peaceful Development and Benefiting People across the Straits. Discussions concerning three topics include the retrospect and outlook for peaceful development, deepening economic and trade cooperation, and expanding culture and education communication. The purpose is to review the past and sum up experience, so that we can better consider and plan the cross-Straits relationship in the future. I sincerely hope that guests to this forum will express their true thinking and ideas on the theme and topics of this forum, so as to make active contributions to further strengthen the cross-Straits relationship.

The past four years have witnessed stable and harmonious conditions across the Straits, with great improvements to the cross-Straits relationship. This period has been a time of landmark importance. In May of 2008, the cross-Straits relationship saw a historic turning point. The two sides have built up political mutual trust on the common basis of opposing Taiwan independence and insisting on 1992 Consensus. A virtuous interaction across the Straits has ensured a positive direction and powerful momentum for the cross-Straits relationship. Direct links in post, transportation and trade, which has been anticipated by compatriots across the Straits for 30 years, has made communication and trade cooperation more convenient.

The Association for Relations across the Taiwan Straits and the Straits Exchange Foundation signed 16 agreements, including the Economic Cooperation Framework Agreement (ECFA), helping to solve a series of practical issues concerning immediate interests of compatriots on both sides of the Straits, and making cross-Straits communication a system-based and standardized process. The cross-Straits economic relationship is becoming closer as the common interests of compatriots across the Straits are further expanded. This is an important support network for the shared economic development across the Straits and the fight against global financial crisis. All-dimensional, multi-tiered and wide-ranging communication across the Straits has taken shape, with communication of compatriots from both sides of the Straits carried out in every area. Cultural and educational exchange is becoming more vigorous while communication at the grassroots level is thriving. Mutual visits across the Straits are rapidly expanding. In 2011, mutual visits amounted to a record 7.1 million. The cross-Straits relationship has opened a new chapter of peaceful development, vigor and vitality. It has already and will surely continue to inflict profound influence on the Straits situation with far-reaching significance.

Achievements in promoting the cross-Straits relationship have been made thanks to the joint efforts by CPC and KMT as well as compatriots across the Straits. This brand new practice has brought us inspiration and valuable experience.

First, peaceful development of the cross-Straits is conducive to the fundamental interests of the Chinese nation and meets the common expectation of compatriots on both sides of the Straits. We are moving in the right direction. In May 2008, when the situation in Taiwan underwent big and positive changes, CPC and KMT and the two sides across the Straits reached consensus on the pursuit and implementation of "the common will of cross-Straits peaceful development," improving and developing the cross-Straits relationship and opening up a new chapter for the relationship. In the past four years, the important thinking and policy of peaceful development has acted as an important guiding principle in pushing forward the cross-Straits relationship in the new circumstances. Great achievements have been made in this relationship, bringing more and more tangible interests to people across the Straits that are widely recognized and welcomed by compatriots on both sides of the Straits and the international community at large. At the beginning of this year, in the face of important changes concerning the development of the cross-Straits relationship, compatriots in Taiwan clearly expressed their hope for a stable Straits situation, expanding communication and cooperation, as well as continuing negotiations. They firmly support the peaceful development of the cross-Straits relationship. The fact is that peaceful development across the Straits is a correct road that we should always stick to.

Second, an important condition for the improvement of the cross-Straits relationship is to seek common ground and foster virtuous interactions while setting aside differences. It is important to build up mutual political trust on the basis of opposing Taiwan independence and sticking to the 1992 Consensus. This basic premise for communication between the two parties and across the Straits helps to ensure a stable cross-Straits relationship and continuous development. The political base for the cross-Straits relationship must not be damaged and should not waver. We ought to value the hard-won development opportunities and strengthen the jointly built political base. This is the strong security for a cross-Straits relationship. We will carry out well intentioned interaction in mutual respect, dissolve differences in the process of increasing consensus, and conduct cooperation in the process of solving problems. In this way, we expect to see more achievements in the improvement of the cross-Straits relationship.

Third, an effective way to promote the cross-Straits relationship is by pushing forward cross-Straits negotiations and communication in accordance with the principle of moving in an orderly way step by step. The cross-Straits relationship is related to various complicated factor, so problems need to be solved in line with urgency and levels of difficulty. We should take into consideration the overall situation and work out unified planning, while at the same time balancing the relationship between active development and actions. In the past four years, in accordance with the principle of first accomplishing easier tasks, developing economic ties and then political ties, and moving forward in an orderly pace, the two sides have made great progress in fostering tangible negotiations. In the future, we should stick to this effective method. Proceeding from people's demand for realistic change, we should try to solve urgent problems first, move forward step by step, gradually accumulate experience and steadily push forward the cross-Straits relationship.

Fourth, the fundamental driving force for the continuous development of the cross-Straits relationship lies in compatriots' extensive participation and support. People across the Straits are the major players to push forward peaceful development of the cross-Straits relationship and also the final beneficiaries of the positive results of this development. In the past four years, Taiwan compatriots have begun to realize that the improvement of the cross-Straits relationship is closely related to their immediate interests as more and more people are participating in cross-Straits communication in a variety of ways. Communication areas and scales are expanding and people's enthusiasm is increasing. This development in public opinion is irreversible. To cherish and consolidate this willingness and enthusiasm to encourage more people to take part in more extensive communication and cooperation will provide a continuous driving force for sustained development of the cross-Straits relationship.

At present, peaceful development across the Straits is already major trend of popular sentiment. We are faced with new opportunities and blessed with better foundations and conditions than ever before. Although we are expecting to see twists and turns in the road ahead, we are confident that unifying as many compatriots across the Straits as possible and carrying on with the current practice will surely lead to a brighter future for the cross-Straits relationship. Here, I'd like to offer four points.

First, we must strengthen our political basis to maintain the momentum of peaceful development. The key to maintaining the correct direction of the cross-Straits relationship is to consolidate our common political base and increase mutual trust. For the time being, increasing political mutual trust means maintaining and consolidating the framework of one China. Although the two sides are yet to be unified, the territory and sovereignty of China remains undivided. The core of the one China framework is that the mainland and Taiwan belong to the same country and the cross-Straits relationship is not that of two separate countries. Proceeding from their respective current regulations and confirming this objective fact, the two sides have reached a consensus. In this way, the framework of one China is defined, maintained and consolidated. On this basis, the two sides can seek common ground and tolerate differences. The two sides should be responsible for history and people. They must fully tap into their political wisdom and take more practical actions to consolidate and deepen the common ground, while putting aside and tolerating differences. It's necessary to make clear how to manage the cross-Straits relationship when the country is still not unified, so as to find a way to gradually solve deeper problems existing in the cross-Straits relationship. In this process, we need to abandon all kinds of outdated hostile thinking, and also proactively push forward the concept of "one family" among compatriots across the Straits.

Second, we must deepen economic and trade cooperation and expand the positive influence of peaceful development. Currently, the global economic pattern is undergoing complicated changes, with economic globalization continuing to inflict far-reaching influences on economic and social development in all countries and regions. Regional economic integration is also speeding up. Meanwhile, the global financial crisis is not yet over as Europe's sovereign debt crisis continues. Developed countries find themselves struggling for economic recovery while emerging economies' pace of growth is slowing down. All these have brought severe external pressure and challenges to cross-Straits economic development. Since this year, although the overall economic operation across the Straits remains stable, both sides are faced with the problems of slipping foreign demand, difficult structural adjustments as well as small and medium-sized enterprises' difficulty in operating their business. In these circumstances, we should take a global and long-term view in dealing with problems and try to turn challenges into opportunities. We must seize opportunities to promote mutually complementary and beneficial cooperation, so as to upgrade economic competitiveness and secure a higher standing point in the increasingly fierce international economic competition. Thus, we should continue to take cross-Straits economic and trade cooperation as the priority in efforts to push forward the cross-Straits relationship. We should try to add to the positive nature of peaceful development of the cross-Straits relationship. We should not only bring the benefits of cross-Straits economic and trade development to more enterprises and common people, but also accelerate the formulation of various long-term mechanisms that deepen cross-Straits economic cooperation, in order to create factors that promote mutually complementary cooperation. We must further make use of the Cross-Straits Economic Cooperation Committee (CSECC) and work out comprehensive long-term planning for economic cooperation. We must accelerate the pace of follow-up negotiations on ECFA to push forward cross-Straits financial cooperation and deepen industrial cooperation. We must encourage enterprises across the Straits to jointly build up Chinese national brands and join hands to explore the world market. While continuing to assist Taiwan companies' development on the mainland, we will encourage enterprises from the mainland to invest in Taiwan, so as to jointly improve the investment environment and promote a balance of mutual investment across the Straits and make the best use of talents, technologies and finances, etc. This plan of action is expected to increase the core competitiveness of enterprises on both sides of the Straits.

Third, we must strengthen educational and cultural communication to expand the content of peaceful development. Culture is the soul of a nation. Ancient and magnificent Chinese culture nourishes the Chinese on both sides of the Straits. It represents strong cohesion and is an important source of the Chinese nation's creativity. In the process of peaceful development of the cross-Straits relationship, people should increase their common interests, but more importantly should strengthen their sentimental cultural connection. Only when compatriots on both sides of the Straits jointly uphold fine Chinese culture and tradition, strengthen the common identity of the Chinese nation, and take the revitalization of the Chinese nation as the common goal, can we expect to see the two sides in a unity that is inseparable. When that happens, cross-Straits peaceful development will be truly filled with vitality and rich culture. To this end, we should continue deepening cross-Straits exchanges and cooperation in terms of culture, education, press and publications and movies and TV, art, religion, as well as civilian customs and beliefs. We must consolidate communication mechanisms, innovate in the ways of exchange, improve the quality of communication and pay close attention to their results. In this way, we will be able to jointly inherit and develop the Chinese culture, foster shared pride in being a member of the Chinese nation with the same ancestors, and aim to revitalize the Chinese nation to lay down a solid cultural and spiritual foundation for the peaceful development of the cross-Straits relationship.

Fourth, we must benefit compatriots across the Straits and increase the power of peaceful development. The fundamental target of our efforts to push forward the cross-Straits relationship is to increase welfare to the compatriots on both sides of the Straits and to realize solidarity, harmony and prosperity of the whole nation as well as the revitalization of the Chinese nation. We sincerely hope to see a stable society, prosperous economy and happy life in Taiwan. We warmly welcome and encourage compatriots across the Straits to join hands in pushing forward common economic and social development. In the future, we will continue to put people first and center on the needs of the people. We'll take into careful consideration people's realistic demands, particularly among the ordinary people in Taiwan. More measures will be taken to benefit Taiwan as we sincerely try to do more good and tangible things for our Taiwan compatriots, so that more Taiwan people will benefit from cross-Straits communication and cooperation. We are trying to create favorable conditions for people from Taiwan, particularly the young generation, to follow their dreams and realize the value of life on the mainland. By doing so, we expect to see more people take in the idea of pushing forward peaceful development of cross-Straits relationship and also to continuously strengthen the internal driving force in the compatriots to contribute to the great revitalization of the Chinese nation.

As the old saying goes, "Rounding up public power will allow us to overcome any difficulties and setbacks on the way forward." The Chinese across the Straits are one family of the same blood who share the same fate. Therefore, as long as we all emphasize the fundamental interests of the Chinese nation and are willing to consider questions from the perspective of members in the same family, there is nothing that can't be negotiated or solved. No difficulties can hinder our efforts to press ahead with peaceful development across the Straits. It's my sincere hope that compatriots on both sides of the Straits will join hands to engage in the wave of peaceful development of the cross-Straits relationship, so as to jointly create a bright future for the Chinese nation.