Hanoi, 26 July 2001

Mr. Chairman,

In the first year of the new century, the international situation is, on the whole, moving towards relaxation. The trend towards multi-polarity is growing amidst twists and turns. The process of economic globalization is gathering speed. Science and technology are advancing day by day. All this has brought new development opportunities to all countries and regions.

But the world has not developed all harmoniously. The survival and security of mankind are still faced with challenges and threats. Economic globalization has increased risks for the world economy. The gap between North and South and the "digital divide" are still widening. Regional conflicts have kept cropping up. Transnational issues are plaguing the peaceful life of mankind in a more and more direct manner.

Since the beginning of this year, the US economy has visibly slowed down and the Japanese economy even got a negative growth rate of 0.2% in the first quarter. The economic slowdown in some developed countries has contributed to a sluggish global demand for the electronic industry, an unstable financial market and a growing trend towards trade protectionism. It has also led to an economic slowdown in many developing countries in Asia. It has gradually reduced the demand for their exports and hence trade surplus. It has made their industries operating under capacity. The main stock and foreign exchange markets have shown a falling trend. It is estimated by authoritative agencies that the GDP of the main countries and region in Asia is expected to have a lower growth rate this year.

How to manage challenges and risks in the complicated and grave situation and achieve development on their own efforts has become a pressing task for Asian countries to tackle. In this context, the Chinese side believes it imperative to make efforts in the following areas:

? To introduce more drastic reform and readjustment measures so as to increase our abilities to fend off risks. Having been baptized by the financial crisis, Asian countries have notably become more keenly aware of the necessity to guard against financial crises and have increased their capabilities of managing market fluctuations. But crisis-prone factors still exist. Under these circumstances, we should redouble our efforts to deepen the reform of the financial regime, establish and improve the social security system, readjust the export mix, promote the development of science and technology, particularly the information industry and constantly upgrade our industrial structures.

? To ensure political and social stability so as to create a favorable environment for economic development. Political and social stability is the basic precondition for economic development. The aftermath of the financial crisis, which remains in some countries to varying degrees, has led to political fluidity in some countries. In addition, ethnic, religious and other social conflicts have become acute. All this has seriously damaged the confidence of national and foreign investors. We sincerely hope to see all Asian countries enjoy political and social stability so that they may focus on invigorating the economy and achieve further growth.

? To strengthen cooperation and coordination and actively promote the process of regional cooperation. Closer regional cooperation will enable the countries concerned to complement each other and increase their abilities to fend off financial risks to the benefit of common development. At present, the 10+3 mechanism is enjoying a good cooperation momentum. The Chiang Mai Initiative is being implemented. The APEC Economic Leaders' Meeting is expected to be held in Shanghai, China in the coming October. However, Asia-Pacific cooperation is still at a level lower that that of other regions. We should enhance our cooperation.

On the other hands, developed countries that are main beneficiaries of economic globalization should assume main responsibilities for stimulating a growth of the world economy. We have noted that many of them have pledged to take prompt measures to promote a recovery of the world economy. Besides, developed countries should render developing countries greater support and more assistance. They should cancel or reduce the debts of developing countries or reschedule their repayment. Meanwhile, they should give the latter necessary economic assistance, particularly technical assistance and technology transfer. They should provide the latter with more market accesses and less trade barriers, as exports are particularly important to the restoration of the economic growth of developing countries.

In order to further improve the global development environment, both developing and developed countries should continue to promote the reform of the international financial regime, start a new round of WTO trade negotiations, narrow their gap in development and work together for the establishment of a new world order which will be more equitable and reasonable.

Mr. Chairman.

As the biggest developing country in Asia and the world, China has spared no efforts in building on its own stability and development. It has also worked vigorously for the peace and development of Asia and the world. This is the first year for China to implement its Tenth Five-Year Plan. Although the current international economic situation is not favorable, China has confidence in a smooth realization of the development objectives set forth in the Tenth Five-Year Plan. In formulating the Tenth Five-Year Plan, China already took into consideration uncertainties in the international economic situation. We are going for development on the basis of boosting our domestic demand. Our economic growth rate reached 8.2% in the first quarter of this year, which is a good beginning for the implementation of the Tenth Five-Year Plan.

A sustained, rapid and sound development of China's economy is conducive to the economic development of Asia and the world at large. Once in the WTO, China will strictly comply with the universally followed rules of the market and open wider to the world. A big open market of 1.3 billion people will give a big impetus to the development of the world economy. In recent years, China's import has maintained a strong growing momentum. It increased by 18.2% the year before last and by 35.8% last year. China's imports have amounted to over 800 billion US dollars in the past five years, more than half of which have come from Asia. In the five years to come, China is going to import about 1.4 trillion US dollars worth of equipment, technologies and products. This undoubtedly spells out a huge market and business opportunities.

As a matter of fact, China's development has generally remained at a fairly low level. We are still faced with many problems in our economy and society. In particular, uneven development is still a serious problem. The grand strategy of developing its west that China has adopted covers six provinces, one municipality and five autonomous regions. With 56% of the country's land area and 23% of its total population, China's west only contributes to 10% of the country's total industrial output. After China joins the WTO, the weak industries in China will face serious challenges. China will have many problems to solve in such areas as environment, energy, water resources, economic restructuring and narrowing the gap between the rich and the poor. China is ready to further its cooperation with other countries to their mutual benefit.

The Chinese government is ready to work with other countries and make greater contribution to prosperity and development of the Asia-Pacific and to peace and progress of the mankind.

Thank you.