Ladies and Gentlemen,

Dear friends,

First of all, I would like to thank ECAN for his kind invitation. I should be here to share with you my feelings about the 11th China-EU Summit and brief you on the outcomes. However, due to reasons you all know, I'm unable to do so tonight.

What has happened is unfortunate. But for us, who are involved in the work and study of China-EU relations, it might be an opportunity to have a cool-minded reflection about our relations.

These days, I always recall what General De Gaulle had said. He was very much respected in China. He said, and here I quote, "Going to the moon isn't very far. The greatest distance we have to cover is still between us".

It is not always easy to understand a person; it's more difficult to understand a nation. It's of course even much more difficult to understand China, a country with 1.3 billion population, and the EU with 27 member states. I hope that the distance between China and Europe is not so far as that between the earth and the moon.

However, what happened this year do make me feel that there is indeed an urgent need for better understanding between China and the EU. There used to be very friendly feelings between Chinese and Europeans. The travelogue of Marco Polo about China, a land of prosperity and beauty, was a source of inspiration and curiosity for many in Europe. And Europe, thanks to its brilliant culture, civilization and advanced science and technology, was the admiration of many Chinese.

However, some changes seem to have taken place in terms of the mutual perception and feelings between the two peoples. Now, when some Chinese talk about Europe, the first thing coming to their mind is probably the unpleasant attack on the Olympic torch in the streets of Paris in April this year.

From the disruption of the Olympic torch relay in Europe, to the struggle against the devastating earthquake in Sichuan, from the success of the Beijing Olympic Games, Paralympic Games and ASEM, to the recent postponement of the China-EU Summit. There have been mixed feelings of both joy and sadness for me, as our relations went through these ups and downs. When I look back and reflect on the twists and turns this year, I can only say, China and the EU is sometimes so close to each other, whereas at other times so far away from each other.

No doubt, We have many views and interests in common. I have emphasized on this in all my meetings with EU leaders and friends. Our relationship is very important. With our respective development and changing international situation, China-EU relations are going beyond the bilateral scope and acquiring more and more global strategic importance. Whether it's for resolving regional hotspot issues, or for addressing major global challenges such as energy and climate change, particularly, for overcoming the ongoing financial an economic crisis, we need more than ever to strengthen coordination and cooperation. This is not only for our own interests of development, but also contributes to world peace and prosperity. I am very happy that President Barroso visited China twice this year. First in April together with 9 commissioners, later in October for the 7th ASEM. These two visits have given strong impetus to our consensus and cooperation on the above-mentioned areas.

On the other hand, we do have some differences or disagreements. These are caused by our different histories, cultures, traditions and the levels of socio-economic development. But I never believe these differences are insurmountable. Instead, I believe many misperceptions are results of lack of knowledge and understanding.

Mr. Lee Kuan Yew, former senior minister of Singapore, wrote an article for the Forbes magazine in June this year. He wrote, "It's sad to see the gulf in understanding between Chinese and Westerners." Take Tibet as an example. He said, "The West has always thought of Tibet as a romantic Shangri-la, high in the Himalayas, populated with a meditating Dalai Lama and monks in serene monasteries. To China, however, Tibet was a backward society of feudal landlords that kept its farmers-90% of the population-illiterate surfs".

Imagination always tends to glorify or mystify reality, but reality after all has to take root in truth. China believes, that like every one else in China and in Europe, the Tibetan people are entitled to embrace the 21st century, benefit from social and economic development and enjoy the political and cultural progress that ensues.

It is my firm belief that state-to-state relations are just like people-to-people relations. They both need honesty, sincerity, openness and mutual respect. It is always a pleasure to be open and frank, exchange and learn from each other. However, when it comes to the questions involving sovereignty and territorial integrity, there is no room for compromise and concession for China. Applying pressure on China on issues of this kind by whomever and in whatever forms, is not wise, nor will it work, and will only end up in hurting our common interests.

An ancient Chinese sage once said, "Spilt water cannot be gathered up". I think there is a lot of wisdom in that. I agree with Mr Cameron from ECAN, unless we act promptly to expand contacts and enhance mutual understanding, we will be falling short of our expectations on making real progress in our relations. In this sense, so long as our mutual trust is there, so long as the political foundation and public support are preserved, we can always expect a better future for China-EU relations.

I have to admit, to develop a comprehensive understanding about China and the EU is not an easy job. But what's important is that we both take a more objective and balanced view and be more tolerant with each other. Particularly when it comes to issues of core interests, we need to pay more respect and take more care of each other's feelings.

Dear friends,

Through the struggle against the Sichuan earthquake and the successful Beijing Olympic Games and the Paralympic Games, the world has come to see a brand new China. A China which is unifying, open, civilized and progressing. China is embracing the world with unprecedented enthusiasm and openness. We desire to see that the sincerity, devotion, and hard work of the Chinese people, one fifth of the world's population, will be understood, acknowledged and reciprocated by the world.

Ladies and Gentlemen, Dear Friends,

China-EU relations is good on the whole. Over the past 10 years, our political relations has made three major strides: from constructive partnership to comprehensive partnership, and then the comprehensive and strategic partnership. Multi-level and wide-ranging political dialogue mechanisms have been established. Negotiation on China-EU Partnership and Cooperation Agreement was progressing well since its launch early last year. Our bilateral trade volume has grown by 6 times, from 48.9 billion US dollars in 1998 to 356.2 billion in 2007. From January to October this year, It reached 359.3 billion US$, up 25% than the same period last year. The figure for the whole year is expected to exceed 400 billion. The EU continues to be China's biggest trading partner and China the second largest of the EU. A close economic relationship of mutual interdependence has come into shape. The fields of cooperation have expanded from a dozen to almost 50. We have signed a series of important cooperation documents in areas such as science and technology, energy, climate change, tourism, customs, quality inspection and social affairs. Facts have proved that, the tremendous progress we achieved in our bilateral cooperation has not only brought tangible benefits to our two peoples, but also contributed substantially to world peace and development.

Ladies and Gentlemen, Dear Friends,

China has always attached great importance to developing relations with the EU. In 1987, Mr. Deng Xiaoping said in his meeting with visiting European friends, "It is our established policy to develop friendly relations and cooperation with Europe, including West and East Europe. This is not only for China's own development, but also to promote world peace."

To further develop China-EU comprehensive and strategic partnership is not only the consensus of both leaders, but also a set policy of China. There will not be any change in our determination and confidence in this regard.

Just a few days ago, Premier Wen Jiabao met with former President of the European Commission Mr. Prodi in Beijing. During the meeting, Premier Wen pointed out, it is the comprehensiveness and strategic nature that make China-EU partnership so important and valuable. As comprehensive partners, we need to reinforce political mutual trust and mutually beneficial cooperation. As strategic partners, we must take a long-term and overall perspective and work together for the long-term stable and healthy development of China-EU relations.

China cherish the hard-earned fruits of our relations. We're ready to build up more trust on the basis of mutual respect, equality and mutual benefit. We are prepared to work hand in hand with the EU to overcome the current international financial and economic difficulties, address various global challenges and ensure a long-term healthy and stable China-EU relationship.

To achieve this, we need a better and more comprehensive understanding between us. We need a stronger foundation of public support. I believe ECAN and friends present here can contribute to this end.

Thank you.