Mr. Chairman,

After our useful discussion yesterday, I believe our meeting today will produce further consensus on the important matters of APEC cooperation with your able chairmanship.

There have been profound and complicated events on the world scene since the Shanghai Meeting a year ago. Striving for peace, development and cooperation remains the principal trend of the world, but the international community is also faced with a number of new challenges. Global economic development is riddled with uncertainties. Much needs to be done in building a stronger multilateral trading system and rolling back trade protectionism. Local wars and turmoil keep cropping up. And non-traditional security threats against peace stand out in sharper relief. How to reactivate economic growth, promote free and fair trade and investment and strengthen cooperation against terrorism is a pressing task before us.

Given the challenging situation, inaction will mean retrogression. APEC must keep pace with the times by strengthening cooperation on the basis of the region's diversity and creating a new situation of common prosperity.

The theme of this year's APEC meeting: "Expanding the Benefits of Cooperation for Economic Growth and Development-Implementing the Vision" reflects the consensus view of the members as it is designed to implement the results of the successive APEC meetings including the Shanghai Meeting. Now I would like to make a few observations on the main issues before us.

First, we should work together to promote the new round of WTO negotiations and implement the contents of the Shanghai Accord. APEC should give full play to its advantages, step up the capacity building, conduct dialogue on the relevant agenda items of the WTO, promote a sound development of the multilateral trading system and make contribution to the establishment of a fair and equitable new international economic order.

APEC has played an important role in promoting Trade and Investment Liberalization and Facilitation in the Asia-Pacific region. China has been an active participant in this process. While attaching great importance to trade facilitation, we have announced the decision to join the APEC Business Travel Card project. Preparations are well under way for a formal launching as soon as possible.

Second, we should vigorously promote economic and technical cooperation and step up the capacity building. Given the uncertain economic prospect in the world, a mutually beneficial and reciprocal Ecotech would help stabilize the market, restore confidence and accelerate economic recovery. Facts have proved that stronger Ecotech and capacity building meet the long-term need of all APEC members for common development. It is my hope that the relevant APEC activities will get further improved in coordination as they go deeper and deliver more tangible benefits by attracting more resources and securing more input from the members.

China supports APEC in its Ecotech efforts and has made its contributions to this end. At the Shanghai Meeting last year, President Jiang Zemin announced the APEC Human Capacity Building Promotion Program and the APEC Finance and Development Program. Thanks to the strong support and enthusiastic participation of the members, these programs have made gratifying progress. In addition, we have set up China APEC Academy, devoted to research, scholarly exchanges, and training programs for businesses. Next year, China will sponsor more cooperation programs such as APEC Medium and Small Enterprises Technology Conference and Fair and the Training Workshop on Developing Government Bond Markets in the Asia Pacific Region. We would like to see an active participation by all members.

Third, we should boost a robust development of the new economy. The rapidly advancing science and technology are changing people's life by the day, making it possible to create more wealth in increasingly short time. But the new economy is neither smooth sailing nor evenly developed as evidenced by the widening "digital divide". It is thus an important area of APEC cooperation to promote the new economy while narrowing the "digital divide". Last year's Shanghai Meeting adopted the e-APEC Strategy aimed at boosting the development of the new economy. It is a forward-looking and action-oriented blueprint of medium- and long-term strategy. I am delighted that APEC has done a great deal of work and scored positive results in implementing the Strategy and developing e-business. I hope that APEC will cooperate still more closely in this regard and let all members benefit from its activities.

Dear Colleagues,

From Shanghai to Los Cabos, APEC has harvested new fruits, but also encountered new challenges. APEC cannot grow without the unity and coordination among all its members. I am convinced that as long as we keep following the "APEC Approach" based on voluntarism and consensus, our cooperation will move forward. Through the unremitting efforts of all of us, an Asia-Pacific family that enjoys common prosperity and an all-win situation will surely emerge to serve the welfare of all the people in the region.

Thank you.