Download Speech by Ambassador Wang Xuexian

Seize Opportunities; Forge a New Future of Asia
Speech by Ambassador Wang Xuexian
at the 6th Asia Economic Forum
（Phnom Phen, Cambodia, January 20, 2010）
Honourable Chairman,
Ladies and gentlemen,
I'm very delighted to come to the beautiful Phnom Penh again to attend the 6th Asia
Economic Forum. First of all, please allow me to express my sincere thanks to the
host of Asia Economic Forum (AEF) for their kind invitation and meticulous
arrangement.
When I was here for the 5th Forum last April, the global financial crisis was still
rampant and world development confronted severe challenges. Many participants at
that time were deeply worried about the future of Asia. However, the year of 2009
witnessed a united Asia making concerted efforts in tackling the challenges brought by
the crisis. Asian countries have taken a series of active measures to overcome
difficulties they confronted and scored remarkable achievements. Today, Asian
economy as a whole has restored some growth momentum and is widely expected to
become the very first region in the world to walk out of the shadow of the financial
crisis.
Asia accounts for over 60% of the world population and 25% of both world GDP
and international trade. Bestowed with great potential in markets and vast space for
development, Asia is playing an increasingly important role in world affairs. In the
past years, a dynamic Asian economy with its high growth rate not only brought hope
and confidence to world economy, but also laid a solid foundation for Asia to gain a
favorable strategic position in the world. Asia should and is capable of maintaining
economic growth tempo and realize full recovery so as to continue to lifting its
strategic position and making greater contribution to world peace, development and
cooperation.
To this end, the following objectives should be pursued and concrete actions taken:
1. Consolidate the foundation to stabilize Asian financial and economic situation
through continued effective measures. Since the breakout of the international financial
crisis, Asian governments had in response taken large-scale economic stimulus
programs, which proved to be crucial for reducing the severity of the crisis. At present,
the full recovery of Asian economy is still faced with uncertainties and destabilizing
factors. We should continue to implement proper financial and monetary policies and
maintain the stimulus measures until recovery is assured, and at the same time be
cautious in adopting the “exit strategy”.
2. Build a solid basis for sustainable development in the post-crisis era through the
restructuring of economic system. The financial crisis exposed structural weakness in
many Asian economies, China included. Accelerating the process of restructuring is
not only the fundamental means to overcome the crisis but also the key measure to
deal with the harsh international competition in the post-crisis era. In order to gain the
initiative, Asian countries should take new strategic actions in line with their domestic
situation.
a. Gradually improve foreign trade structure and advance the upgrading of export
product. Most Asian countries' growths are excessively dependent on export. Primary
processing trade has taken up disproportional large share in foreign trade volume
while high value-added products are often absent. Western capital have taken the lion
share of the profits whereas Asia only got some marginal processing profits along with
consumed resources and polluted environment, and was even labeled as
"environment-polluter". In order to dramatically change this unreasonable situation,
Asian countries have to resolutely promote export of products with self-owned brands
and independently innovated key technology so as to fundamentally reverse the
low-level circulation of simple processing and exporting, which will also help to
optimize and upgrade our economic system.
b. Reform the income distribution system to continuously expand domestic demand.
As it is often the case that most Asian countries place more emphasis on growth than
consumption, and the driving force of economic growth by consumption has been
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somehow hurdled. Therefore, Asian countries have to work hard to enhance domestic
consuming capacity and improve consuming environment. More importantly, many of
our countries should adjust national income distribution practice, formulate a rational
and fair policy of primary distribution in order to narrow the gap between the rich and
the poor, and make sure that public consumption demand at various level are all
properly satisfied. We not only need to make our "cake" of bonus much bigger by
raising all people's income, but also distribute it fairly so as to provide more tangible
benefits to low-income group in particular.
c. Focus on developing tertiary-industry and improve industrial structure and layout.
The global financial crisis has exposed the truth that tertiary- industry, especially the
service sector, consists too small a part in many Asian countries' economy, Hence,
Asian countries must change the concept that industry is more important than service,
and coordinate the overall development of agriculture, industry and service industry.
Meanwhile, service industry should become leading sector in national economy so as
to facilitate the formation of a new pattern of economic growth driven by the parallel
expansion of tertiary industry sectors.
d. Foster and develop emerging strategic industries. Emerging strategic industries
mainly include green energy, three networks connection (connecting
telecommunications, TV and radio networks), information industry, biotechnology,
nanotechnology, etc. The development of these industries will not only contribute to
the recovery of the Asian economies, but also put the Asian economies in a better
position in leading the sustainable social and economic development in the future.
Asian developed countries such as Japan and South Korea had increased their
investment in these areas. If Asian developing countries don't wish to remain
‘developing’ forever, we must devote more efforts to developing those emerging
industries despite various difficulties. Joint efforts in research and development should
be explored for common benefits in due course.
3. Strengthen the overall Asian inner dynamism of the economic development and
master the destiny of Asia’s own development. The economic growth of Asia is highly
dependent on the European and American markets. Anytime when Europe and US get
cold, Asia will have to take medicine. And this time the financial crisis has once again
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exposed the weakness of lacking of inner dynamism in Asian economies. Asia, proud
of its big population, diversity, broad domestic markets, high saving rate, sufficient
foreign exchange, has actually great inner growth potential. Hence, Asia should give
full play to this advantage, deepen our cooperation and take our own needs and
innovation as the main driving force for the economic growth in the future. Each
country should develop the industries of its own characteristics, complement each
other, arrange the industry layout in a more rational manner, and try every means to
enlarge the inter-regional trade so as to achieve common prosperity. This January
witnessed the formal launch of China-ASEAN Free Trade Area and Asian countries
should take this momentum to push regional integration and continuously enhance the
inner dynamism of economic growth.
4. Join hands to combat global challenges such as climate change, environmental
degradation, energy security and food security etc.. Protecting environment and
guaranteeing energy and food security is closely related to the stable economic
development and people's welfare of Asia. With the fast economic growth, many
countries in Asia have paid dearly in terms of the incessant environmental degradation,
and the environmental problems have put Asia at a crossing-road. In this sense, each
Asian country should raise environmental awareness, push forward circular economy
and pursue the path of green development. By implementing sustainable development
strategy, economic growth should be obtained on the basis of resource-efficiency and
environmental friendliness, challenges of climate change should be tackled together
and good environment should be the result of economic growth rather than its
sacrifice.
Global climate change is a major challenge calling for concerted efforts to respond.
International community should adhere to the principle of common but differentiated
responsibilities, and keep international cooperation on climate change on the right
track in line with the provisions of the UNFCCC and its Kyoto Protocol. Developed
countries should fulfill the task of emission reduction set in the Kyoto Protocol and
take up their responsibility and provide new, additional, adequate and predictable
financial support to developing countries and enable developing counties to have
access to climate-friendly technologies. Developing countries should, in light of their
national conditions and with the financial and technological support of developed
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countries, work hard to adapt to climate change and do their best to reduce greenhouse
gas emissions.
In recent years, Asian countries' demands for energy have been rising persistently.
Asia need to develop and implement a new energy security concept that calls for
mutually beneficial cooperation, diversified forms of development and common
energy security through coordination, enhance cooperation for mutual benefit in
energy development and utilization, improve energy structure and build a global
energy supply system that provides stable, clean, economical and safe energies.
Food security concerns the livelihood of hundreds of millions of Asian people. Each
country should, in the spirit of common development, actively coordinate policy and
action, stabilize food prices and strengthen mutually-beneficial cooperation. A
favorable condition can be created for food security though multiple efforts to increase
food production, improve trade environment, enhance macro-coordination and hold
down over- speculation.
5. Reform the international rules of game of globalization and increase the
speaking right and leadership of Asian countries. The financial crisis has exposed the
irrationality and injustice of present international economic system and rules of the
game, and given rise to the call for international economic and political reforms.
Before the financial crisis, the western countries promulgated its economic
neo-liberalism, and the "Washington Consensus", which takes privatization,
marketization and deregulation as its core, was worshipped and blindly followed by
many countries. The move of "reforming the world" by the political neo-conservatives
was nearly crazy.
The facts have proven that these theories did great harm to many countries,
especially the development of the developing countries, including many Asian
countries. With a view to learning from past lessons and experience and avert falling
into the same old trap again, the Asian countries should carefully and thoroughly
reflect on these "mainstream" development modes and concepts, resolutely promote
reform of international economic governance structure, increase the representation and
voice of developing countries and help to advance globalization in the direction of
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mutual benefit, win-win progress and shared benefits. There is no one-size-for-all
development path and mode in the world, neither is there any development path and
mode that never changes. The point is that it should suit the time, people's will and
national conditions. We should blaze and follow our own path.
6. Seize the historic opportunity and build a harmonious Asia of lasing
development and common prosperity. At present, the historic trend of seeking peace,
development and maintaining cooperation has provided unprecedented opportunity for
peaceful and harmonious co-existence of Asian people. Asia should conform to the
trend and make great effort to push for the establishment of a harmonious Asia of
lasing development and common prosperity, in which each country is equal, people
live peacefully and harmoniously together with each other and with nature.
In this regard, all Asian countries should politically respect each other and associate
with each other on an equal footing in a common endeavor to promote democracy in
international relations. Economically, we should cooperate with each other, draw on
each other's strengths and work together to advance economic globalization in the
direction of balanced development, shared benefits and win-win progress. Culturally,
we should learn from each other in the spirit of seeking common ground while
shelving differences, respect the diversity of the world, and make joint efforts to
advance human civilization. In the area of security, we should trust each other, uphold
good-neighbor policy and settle disputes through consultation, negotiation and other
peaceful means, and work together to safeguard peace and stability of Asia.
China belongs to Asia. China's development cannot be achieved without Asia and
vice versa. China will continue to unswervingly follow the path of peaceful
development and uphold a mutually beneficial and win-win strategy. We will take full
advantage of the opportunity brought by Asian development to develop ourselves, and
at the same time contribute to safeguarding peace and promoting common
development of Asia though our own development. As an important force of
safeguarding peace and development in Asia, China will continue to adhere to the
foreign policy of building amicable relationship and partnership with our neighbours,
and develop friendly cooperation with other Asian countries. China will continue to
support Asia in playing an important role in international arena and make our
contribution to further upgrading Asia's strategic position in the world.
Thank you.
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