Ladies and Gentlemen,

Let me begin by thanking the Organizing Committee of the APEC CEO Summit for its gracious invitation, which gives me this opportunity to meet all of you here and discuss with you some of the critical issues concerning world economic development.

Gathered from the economic performance of various countries now, world economy has begun to show signs of recovery, which is indeed gratifying. Such a recovery, however, is not solidly based as evidenced by fluctuations in the economies of certain countries and regions. This, of course, is worrisome. At this important juncture, governments and business communities should make concerted efforts to place world economy on a sound track of virtuous development.

APEC economies make up more than half of the world economic aggregate, hence the critical bearing of their performance on the direction of the world economy. APEC members need to take more vigorous steps both for the sake of their own economic development and in the interest of the world economy.

In the past two years, China, like other countries, has been confronted with multiple difficulties in development due to readjustments in world economy and changing demands on the international marketplace. To boost economic growth, the Chinese Government has opted for stimulating domestic demand by implementing a proactive fiscal policy and a prudent monetary policy, accelerated economic restructuring and made vigorous efforts to promote reforms in various sectors and greater openness to the outside world. China's economy has maintained a sustained, rapid and sound growth since the beginning of the year, and the year's growth rate is expected to be over 7 per cent. A world economic recovery serves China's development, and vice versa.

In the face of current economic situation in the world, it is all the more necessary for the governments and business communities of APEC members to increase trust and cooperation as passengers in the same boat. To reactivate world economic growth, APEC members should make their market more accessible and create more business opportunities for both domestic and foreign firms. Thanks to years of hard work, APEC trade and investment liberalization (TILF) and economic and technical cooperation (Ecotech) have made a considerable headway. At their last year's meeting in Shanghai, leaders of APEC members reached a consensus reaffirming TILF and Ecotech as the core elements of the APEC process. Trade protectionism, in the short run, may have protected domestic companies by securing the home market. However, in the longer run, it not only constrains business opportunities of foreign companies, but also hamstrings the development of the domestic companies. It behooves us to keep in mind the larger interests of regional economic cooperation and world economic development, rein in trade protectionism and work unswervingly to promote TILF and Ecotech.

Last December, China officially acceded to the WTO. The past ten months has seen a substantial amount of work on the part of China to reduce the general level of tariffs, remove non-tariff barriers, straighten out and amend foreign-related economic laws and regulations, and further open its service industry. China will make good on its promises, deepen reforms and open still wider to the outside world. China will take an active part in the new round of multilateral trade negotiations and continue to play its constructive role in seeking, together with other parties, a balance of interests between the developing and developed members in the multilateral trading system.

China's development and opening-up have already turned the country into one of the major global markets recognized by international business communities, a market that presents a greater deal of opportunities for foreign goods and services. What happened in recent years has proved that China's growing economy represents a positive contribution to the global, particularly Asia-Pacific economic development. To the developed countries, China's development means tremendous demands for their capital-intensive, technology-intensive and knowledge-intensive products. In fact, such products are being imported by China by an increasingly large margin. At the same time, China's growing economy and rising export may satisfy the huge demands for labor-intensive products on the part of developed countries. China's import from other developing countries is also on the fast increase. With greater technological capability and economic strength, China has gradually expanded its investment in and economic and technical cooperation with other developing countries. China stands for developing economic and trade relations with all countries in the world on the basis of equality, reciprocity and mutual benefit, and hopes to increase cooperation with them in the effort to achieve common development.

China has extensive economic and trade links with countries and regions in Latin America, and the recent years have witnessed rapid development in the economic and trade relations between the two sides. Bilateral trade volume stood at US$14.9 billion in 2001. Economic and technical cooperation as well as mutual investment have also made gratifying progress. The level of China-Latin America cooperation keeps improving and the scope of cooperation expanding.

Mexico, our host for the meeting, is China's important partner in Latin America. The two countries signed a trade treaty as early as in 1899. Since 1972 when China and Mexico established diplomatic ties, we have made continuous progress in trade, economic and technical cooperation and mutual investment. Mexico is now a major recipient of Chinese corporate investment in Latin America. In 2001, China's import from Mexico rose by 56% over the previous year, signifying an increasing inflow of Mexican goods into the Chinese market. The two economies are highly complementary, which promises broad prospects for stronger economic and trade relations between the two countries.

China has an abiding interest in the economic development of Latin America. Uncertainties in world economy and the turbulent international financial market have had a severe impact on Latin American economies and their financial markets. At the moment, the governments and business sector in Latin America are working hard on countermeasures aimed at restoring financial stability and ensuring economic recovery. I am convinced that with the joint efforts of Latin American countries, there will surely be better development in their economies. It is my hope that China can lend a helping hand to the Latin American economy with its own development.

Ladies and gentlemen,

Since the new century started, the world has undergone profound changes, evidenced by rising instability and new difficulties in world economic development. However, maintaining peace and promoting development remain the common aspiration of people of all countries in the world. So long as we join hands and work together, we can surely continue to carry forward the lofty cause of peace and development.

Thank you.