Mr. Chairman,


At this historic moment of the dawn of the new century, it is of great significance for ASEM leaders to get together to discuss the important matter of cooperation.


Since the inaugural Summit in Bangkok in 1996 and the second Summit in London in 1998, the partnership based on equality between the Asian and European continents has kept progressing. ASEM members have conducted fruitful dialogue and cooperation in the political, economic, trade, scientific, technological, cultural, educational and other fields, thus promoting the mutual understanding and friendship between the people of the two continents.


Currently, the Asian economy is presenting a gratifying momentum of recovery while the European integration continues to proceed steadily. In 1999, the overall GDP of ASEM member states reached US$15 trillion, accounting for about half of the world?s total. The sustained economic growth of Asia and Europe and continued advancement of their science and technology will give a new impetus to an all-round development of the Asia-Europe partnership. With a view to expanding cooperation between Asia and Europe in the economic, trade, scientific, technological and other fields, I recommend that at present we focus our efforts on the following areas:


First, respond to the needs of optimizing the industrial structure and enlarge Asia-Europe cooperation in trade and investment. Industrial restructuring is taking place on a global scale, thus bringing about new opportunities of bilateral cooperation. Under the current circumstances, there must be a new breakthrough in the economic cooperation between Asia and Europe. Firstly, our two sides should strengthen cooperation in developing high-tech industries and upgrading traditional industries with high and new technologies. ASEM?s European members should make greater efforts in technology transfer, increase their investment in other countries, encourage and help their transnational corporations to establish technology and development centers in Asian countries while making investment and setting up companies there, participate in the reorganization and reform process of Asian?s large and medium-sized enterprises, and develop joint equity or joint ventures there. Secondly, we should promote our financial cooperation. We should carry out mutually beneficial cooperation and exchanges in such areas as strengthening financial supervision and regulation, enhancing the monitoring of the flow of international short-term capital and training international finance and management professionals. Thirdly, our two sides should further open our respective markets, and take more aggressive steps to give more market access to each other, reduce quantitative restrictions and remove non-tariff barriers, etc., so as to boost our two-way trade.


Second, step up scientific and technological exchanges and deepen cooperation. The scientific and technological cooperation between Asia and Europe holds out tremendous potential. Since the convocation of ASEM Science & Technology Ministers? Meeting in Beijing in October 1999, our two sides have made further progress in this field. In light of the new developments in modern science and technology, we should focus on the research and development of high technology, and conduct all forms of cooperation and exchanges in the development of information technology and its application in particular, so that government administration, public services and the production and operation of enterprises will be more information-based.


Third, attach importance to training and fostering talented people and promote cooperation in education. Human resources development is an important factor for economic growth and an essential sector of Asia-Europe cooperation. Our two sides may increase educational funds for the disadvantaged areas and population through a number cooperation projects, and support ASEM?s developing members in their conducting cooperation with the developed members in running schools with urgently-needed disciplines. We should intensify cooperation in training personnel of high caliber, encourage cooperation in scientific research and academic exchanges between institutes of higher learning, and prompt business communities to the joint training of personnel versed in management and technology innovation.


Fourth, focus on sustainable development and promote cooperation in the fields of environmental protection and agriculture. ASEM?s developed members have their strengths in environment-related technological research and development, while the developing members in Asia are attaching increasingly greater importance to sustainable development. In this connection, the environmental cooperation between Asia and Europe has a bright prospect. It is my suggestion to hold an ASEM Meeting of Environment Ministers to push forward our environmental cooperation within ASEM framework. It is of importance in many respects to Asia and Europe to advance the sustainable agricultural development. Our two sides may boost cooperation in improving comprehensive farming production capacity, upgrading techniques concerning intensive processing of agricultural produce and developing eco-agriculture.


Fifth, strive to create conditions for opening up new dimensions of cooperation between Asia and Europe. Our two sides have much to do in respect of carrying out extensive cultural exchanges and cooperation and intensifying consultation and cooperation in combating cross-border crimes and banning drugs. We should vigorously initiate and enhance cooperation and exchanges in these fields in an orderly manner.


With no conflict of fundamental interests, Asia and Europe have maintained good political relations. Of course, it is inevitable that frictions of one kind or another may occur between the two sides in the process of cooperation and contacts. However, so long as our two sides adhere to the principles of respecting each other, treating each other as equals, seeking common ground while shelving differences and seeking consensus, and earnestly conduct political dialogue, we will be able to deepen mutual understanding, reduce differences, increase trust, expand consensus by seeking the convergence of our common interests, and make ASEM a model for intercontinental cooperation based on equality and an important force for promoting the establishment of a fair and reasonable new international political and economic order. We look forward to and are full of confidence in the establishment of a long-term stable partnership based on equality between Asia and Europe. China stands ready to work with other ASEM members for an even brighter future for Asia and Europe and the world as a whole.