Speech by H.E. Hu Jintao

President of the People's Republic of China

At the APEC CEO Summit

Lima, Peru, 21 November 2008

Mr. Chairman,

Ladies and Gentlemen,

Dear friends,

It gives me great pleasure today to meet you again, leaders of the business community, and exchange views with you on the global financial crisis and China's development.

The year 2008 has been truly eventful for China. The Chinese people prevailed over disasters caused by the heavy snowstorms and the massive earthquake that hit Wenchuan, Sichuan Province. And we successfully hosted the Beijing Olympic and Paralympic Games. I wish to take this opportunity to express, on behalf of the Chinese Government and people, heartfelt thanks to friends from the business community of various countries and regions for the support and assistance given to us in our fight against the severe natural disasters and in hosting the Olympic and Paralympic Games.

Ladies and Gentlemen,

Dear friends,

The ongoing financial crisis has caused shockwaves in the international financial markets and seriously affected the economic development and people's livelihood of all countries. An effective response to the financial crisis and the maintenance of global economic stability are crucial to global prospect of growth and the immediate interests of all countries. At this critical juncture, countries should enhance confidence, strengthen coordination, conduct close cooperation and take prompt and effective measures, including all necessary fiscal and monetary means, to stop the spread and development of the financial crisis, bring early stability to the international financial markets, minimize the damage on the real economy, bolster world economic growth and safeguard the common interests of people of all countries.

China welcomes the positive measures taken by relevant countries to tackle the financial crisis and hopes they will produce the desired results soon. China, on its part, is doing its best and has adopted a number of important measures, including ensuring the stability of our banking system, providing necessary liquidity support to the financial markets and institutions and enhancing macroeconomic policy coordination and cooperation with other countries. We will, with a sense of responsibility, continue to work with the rest of the international community to enhance cooperation and preserve stability in international financial markets.

The international community should earnestly draw lessons from the ongoing financial crisis and, based on full consultations among all stakeholders, undertake necessary reform of the international financial system in a comprehensive, balanced, incremental and result-oriented way with a view to establishing a new international financial order that is fair, just, inclusive and orderly and fostering an institutional environment conducive to sound global economic development. It is imperative to step up international cooperation in financial regulation and enhance the early-warning and regulatory capacities. The global responsibility of international financial institutions to fend off financial risks should be strengthened and developing countries should have bigger say and representation in international financial institutions. We should encourage regional financial cooperation and enhance capacity of mutual support in liquidity. The international monetary system should move steadily towards diversification and work more effectively. Financial institutions and intermediaries of various types should improve risk management and increase transparency.

China will continue to promote the building of a sustainable international economic system, an inclusive and orderly international financial system, a just and equitable international trading regime and a fair and effective global development system. While seeking our own development, we will accommodate the legitimate concerns of our cooperation partners, developing countries in particular. We support the international community in helping developing countries strengthen capacity for independent development and improve people's livelihood. We support efforts to promote trade and investment liberalization and facilitation. And we support the joint endeavor of all countries to uphold world economic security and promote common development and prosperity.

Ladies and Gentlemen,

Dear friends,

People now want to know the prospects of China's development and friends from the business community have a particular interest in how China's economic and social policies will evolve under the new circumstances. Let me take this opportunity to give you a brief outline of China's future development.

This year marks the 30th anniversary of China's reform and opening-up program. Through reform and opening-up in the past 30 years, China has made unprecedented achievements in economic and social development. The country's economic strength, overall national strength and people's livelihood have all improved significantly. However, we are keenly aware that China is still the largest developing country in the world. There is a long way to go before China can achieve modernization. On the way ahead, we will continue to follow the Scientific Outlook on Development by putting people first and making development comprehensive, balanced and sustainable. We will unswervingly pursue reform, improve the socialist market economy and build systems and institutions that are dynamic, efficient, more open and conducive to scientific development. We will follow a new path of industrialization with Chinese characteristics and transform the mode of economic growth. Instead of relying mainly on investment and export, we will adopt a coordinated approach that combines consumption, investment and export to boost the economy. And instead of relying heavily on higher consumption of material resources, we will achieve development by making scientific and technological progress, improving the quality of the workforce and developing innovative ways of management. We will build a modern industrial system. We will balance urban and rural development, development among regions and economic and social development and form a new pattern that integrates urban and rural economic and social development to achieve balanced development among regions. We will adhere to the basic state policy of resource conservation and environmental protection. We will encourage "green" production and way of living, increase resource efficiency and control the total discharge of pollutants in an effort to form a national economic system of intensive and clean development and ensure that the natural eco-system and the social and economic system are mutually reinforcing. We will accelerate the implementation of all social undertakings that focus on improving people's livelihood. We will address the issues affecting people's immediate interests in areas such as education, employment, income distribution, social security, poverty alleviation, medical care and public health and work safety so that all people can enjoy the fruits of reform and development. We will adhere to the basic state policy of opening-up, raise the level of the open economy, expand the scope of opening-up, and take a more active part in international economic cooperation.

Since the beginning of this year, China has taken robust measures to address the complex changes in the international economic environment and the severe challenges of major natural disasters. We have maintained relatively fast economic growth and steady development of the financial sector. The fundamentals of the Chinese economy have not changed. On the other hand, however, the global financial crisis has noticeably increased the destabilizing factors and uncertainties in China's economic development. Sound growth of the Chinese economy is in itself an important contribution to maintaining global financial market stability and promoting world economic development. To boost economic development, the Chinese Government has lowered the required reserve ratio, cut the deposit and lending rates and eased the corporate tax burdens. We have recently adopted even stronger measures to generate greater domestic demand. The Central Government has decided to invest an additional 100 billion RMB yuan this year in projects related to people's livelihood, infrastructure, the eco-environment and post-disaster reconstruction. This is expected to generate a total of 400 billion RMB yuan of investment nationwide. Between the fourth quarter this year and the end of 2010, investment in these projects alone will reach nearly four trillion RMB yuan. Implementation of these measures will give a strong impetus to China's economic development and contribute to world economic growth.

Ladies and Gentlemen,

Dear friends,

As one of the most vibrant and promising regions in the world, the Asia-Pacific is now an important driving force for global economic growth as it plays a bigger role and exerts increasing influence in the world economic arena. At the same time, sound and steady growth of the region's economy is threatened by the grim world economic situation, serious issues concerning energy and food security, rising trade protectionism and environmental degradation. The rich diversity and great interdependence and complementarity among the APEC economies have enabled us to deepen regional cooperation and jointly respond to challenges. We the APEC members have long been committed to the Bogor Goals and promoting economic and technical cooperation. The rich experience we have gained serves as a good foundation for enhancing policy coordination and practical cooperation. We should work together to ensure sustained economic development of the Asia-Pacific region.

The business community is a major player in promoting world economic development and sound and stable international economic and trade relations. It has an important role to play in tackling the global financial crisis and keeping the world economy on an even keel. A review of world economic development shows that if the global financial situation is to stay stable and if the world economy is to grow in a sound and steady manner, it is imperative to bring into play the role of enterprises, especially multinational corporations. It is true that enterprises must make money in order to survive and grow. But they all exist and operate within a society and as such, they must also consider what benefits and impact their actions may bring to the society, particularly to economic security and people's livelihood. It serves the interests of all enterprises if they can work together to foster a good environment for development. As globalization deepens, enterprises should be keenly aware of their global responsibilities, incorporate social responsibilities into their business strategies, comply with local as well as international laws and business practices, improve business models and strike a balance between economic benefits and benefits to the society. While trying to maximize returns through market operations, enterprises should adopt a responsible attitude, pursue mutual benefit and complementarity, bear in mind the need to maintain overall economic stability and avoid risks, both real and potential. Governments must strengthen guidance and oversight and introduce and improve laws to create conditions for enterprises to fulfill their social responsibilities on their own.

Ladies and Gentlemen,

Dear friends,

Let us join hands and make unremitting efforts for the sustained development of the Asia-Pacific region and an Asia-Pacific family of enduring peace and common prosperity.

Thank you.