Speech by Li Keqiang, Premier of the State Council
Of the People's Republic of China,
At Luncheon Hosted by Chinese and German Business Leaders

Berlin, 27 May 2013

Vice Chancellor Philipp Rösler,
Chairman Peter Löscher,
Distinguished Guests,
Ladies and Gentlemen,

I am glad to meet you, Chinese and German business leaders, during my visit to Germany.

Vice Chancellor Rösler has just delivered a warm address. He mentioned the German government's official reply to the Commission this morning, in which Germany voiced its opposition to the launch of anti-dumping and countervailing duty investigations against Chinese wireless telecommunication equipment. Germany could have replied three days ago. Yet it did not do so until this morning in order to hear the position of the Chinese government. This is a common position between our two countries, which I highly appreciate. The AD&CVD investigations launched by the European Union against Chinese photovoltaic products and wireless telecommunication equipment will cause severe adverse impact on Chinese industries, businesses and employment and hurt European consumers, companies and employment. China hopes to work with the EU to fight against trade protectionism, oppose the abuse of trade remedies and address trade frictions through dialogue and consultation. The world economy is slowly recovering. Europe still faces challenges in overcoming its own difficulties, and China is undergoing economic adjustment. Against this backdrop, opposing trade protectionism is crucial to overcoming these difficulties and meeting challenges.

In his address, the Vice Chancellor also hoped to see more Chinese investment in Germany. Indeed, compared with the bilateral trade volume and German investment in China, Chinese investment in Germany is still modest. We encourage more well based Chinese companies to invest in Germany. This morning, I met with the heads of the Chinese Chamber of Commerce in Germany, whose job is to assist more Chinese companies to make investment in Germany. Chairman Löscher also hopes that China will open wider to the outside. I am paying this visit to promote greater openness and cooperation, in particular, openness towards and cooperation with Germany and Europe.

During my visit, I have had cordial and friendly meetings with German leaders. I had meeting lasting seven hours with Chancellor Merkel and we reached new agreement on boosting China-Germany strategic partnership. I also had a dialogue with German business leaders. China and Germany will continue governmental consultation and annual meeting between heads of government, and make more progress in several dozen mechanisms on cooperation. I have just met with representatives of the China Advisory Council, whose chairman and vice chairmen are heads of well established and influential financial and industrial corporations of both countries. The founding of this Council not only shows the importance both governments attach to bilateral business relations, but also opens a new channel for conducting business cooperation. This is the first council of its kind set up between China and Germany, an EU country and a major global economy, and it has become a second track for boosting China-Germany business relations. A train can only run fast on two tracks. When governments and businesses work together, both tracks will be able to play their roles and both wheels will turn. In short, China-Germany relations, driven by a powerful hybrid engine, are speeding up along the fast track.

Ladies and Gentlemen,

Since you are quite interested in the Chinese economy and its growth prospect, I will give you a brief update on them.

China will continue to pursue peaceful development. We are making untiring efforts to build China into a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious, and realize the Chinese dream, which is the great renewal of the Chinese nation. Our goal is to turn China into a country of initial prosperity in all respects by 2020. This requires us to unswervingly advance reform and opening-up, and promote the balanced development of industralization, IT application, urbanization and agricultural modernization. These endeavors will create huge opportunity for Germany and Europe's cooperation with China.

China's total economic output is increasing, and it has maintained a proper rate of growth. Its GDP grew by 7.7% during the first quarter, higher than the 7.5% annual target set at the beginning of the year. At the same time, 4.32 million new jobs were created in urban areas, slightly more than the same period last year. To achieve the goal of doubling China's GDP and per capita income of 2012 by 2020, we need to maintain an annual growth rate of around 7%. This is not easy for such a large economy as China's. But we have the condition and the ability to meet this goal. We also need to redouble our efforts. China is a big country with 1.3 billion people, and its accelerating industrialization and urbanization drive will unleash huge development potential. With a per capita GDP of 6,000 US dollars, China has reached the level of a middle income country and there is huge space for upgrading consumption. China's reform will generate huge dividends, which will further boost market vitality and the internal growth momentum of the economy. China's economy has reached 52 trillion yuan in size. Each 7.5% growth means an increase of 3.9 trillion yuan in GDP, which is much bigger in size than in the past. We need to maintain sustained, stable and sound growth of China's economy. The market will thus have a clear and long-term expectation of China's economic trend.

China also faces many challenges in its development endeavor, such as improving the performance of stable growth, addressing energy, resource and environmental constraints on development, and ensuring food security and safety. The challenges we face are enormous, but making proper response to these challenges will create new sources of growth and new space of development.

China is committed to reform and opening up. It is reform that has ensured the rapid growth of China's economy in the past three decades, and healthy growth of the economy will still hinge on reform. We will deepen market-based reform in all areas. To transform and upgrade China's economy, we need to open the country wider and engage in more exchanges and cooperation with other countries. In the next five years, China will import 10 trillion dollars worth of goods. China welcomes foreign investment and new managerial expertise and technologies from foreign businesses. We will study the common rules on market access of other countries so as to provide a level playing field and facilitation to all foreign companies operating in China. All companies, whether Chinese or foreign, wholly-funded or joint venture, as long as they are registered in China, are treated as equals. China will take concrete steps to step up IPR protection. To upgrade the economy, it is imperative to protect IPR. Otherwise, foreign companies will be discouraged from making investment and setting up business in China and it will be difficult to keep Chinese companies, entrepreneurs and researchers motivated. IPR protection, which is important for China's economy, is a strategic decision we have taken.

Ladies and Gentlemen,

In the past 40 plus years since the establishment of diplomatic ties, China-Germany relations, like the Yangtze River and the Rhine, are surging forward despite twists and turns. Our two countries now enjoy ever-stronger mutual trust, and our pragmatic cooperation in all fields is deepening. Both China and Germany are global economies, manufacturers and trading countries. Both the Chinese and the Germans are talented and hard working. Both our countries pursue a free trade policy, have a keen sense of forestalling potential crisis, and are innovation driven. Our interests converge in broad areas; we have a lot to offer each other in cooperation, and there are great prospects for such cooperation. The growing "made in China" and the mature and reliable "made in Germany" products are a perfect match, and we can join hands to explore the third market. Our cooperation in manufacturing, trade in goods, services and trade in services has great potential of growth. The service sector is a major source of job creation. China has reached a stage where it needs a stronger service sector to create more jobs. To make life better for the Chinese people, we need both quality goods and quality services. China and Germany can do a lot together in urbanization, modern logistics, education and training, medical care, etc. We hope Germany will give equal treatment to Chinese companies in market access, visa and work permit.

Germany is an important country in Europe and the EU. So my visit to Germany in a sense is also a visit to Europe and the EU. Europe is an important pole of the world today. China wants to see a united, prosperous and stable Europe and a strong euro. China has always been a firm supporter of European integration and given our due support to Europe in tackling the debt issue. China and Europe have far more common interests than differences. This year marks the tenth anniversary of China-EU comprehensive strategic partnership. China will work with the EU to increase strategic trust and dialogue and cooperation in financial stability, urbanization, energy security and global governance, and properly handle our problems. As outstanding representatives of eastern and western civilizations, China and Europe have the vision and capability to resolve disputes and frictions that may emerge to achieve mutual benefit. We have full confidence in the development of China-EU relations and the ability of Europe to advance the process of European integration and overcome temporary difficulties.

Ladies and Gentlemen,

Yesterday afternoon, Chancellor Merkel and I attended the ceremony of inaugurating the China-Germany Language Year. Language embodies progress of human civilization; it is an important medium that makes communication between people living in a diverse world possible. The Chinese, who value both knowledge and action, have written many great works in Chinese. The Germans, masters of speculative philosophy, have done the same in German. After my visit to the site of the Potsdam Conference yesterday, I met with two old friends whom I first met 23 years ago when I visited Germany. We recalled with great fondness the time we spent together along the river at the Tubingen University talking about Confucius, Lao-Tzu and Hegel. It is still fresh in my mind. To enhance language and people-to-people exchanges between our two countries will cement the foundation of our relations. Gottfried Wilhelm von Leibniz, a German philosopher in the 17th century, was well known for his knowledge on China although he had never been to China. He was immersed in the study of China and saw something in common between the binary system of his invention and hexagrams of the Book of Changes. What he observed shows there is a meeting of minds between our peoples. Many of you here have traveled frequently between our two countries. Many have become China hands or Germany hands through friendly exchanges. We hope to see more China hands and Germany hands who will serve as bridges of minds and cooperation and help open a new and splendid chapter of China-Germany friendly relations and cooperation based on mutual respect and better understanding.

Thank you.