Dear President Wuttke, members of the Chamber,

Good Evening. I'm very happy to join you again for an exchange of views on our business cooperation.

Today, I would reserve more time for discussion, so I will make a very brief introduction on China's economic situation and China-EU economic cooperation. I prepared a hand-out version with more facts and figures for your reference.

Ladies and Gentlemen,

As you know, in face of the financial crisis, China reacted quickly and resolutely with an proactive fiscal policy, a moderately loose monetary policy and a stimulus package. We intensified policy coordination with other economies and initiated new cooperation schemes. These measures produced positive results. From the second quarter of this year, growth was speeding up on all important economic indicators, but we know very well that this momentum is far from steady and solid.

Therefore, we'll hold on with this fiscal and monetary policy, expand this stimulus package and make it better working. We'll be on high alert against all potential risks and new challenges, so we'll be able to take preemptive measures or give effective remedies. We'll do everything we can to keep our economy in good shape.

At the same time, China joined hands with the EU to combat the crisis. We share a firm resistance againt protectionism and a common aspiration for closer cooperation. We made joint effort to create more business opportunities. During previous summits and high-level economic dialogues, agreements were signed on further cooperation in many fields. And China sent six procurement delegations to the EU countries. Thanks to these efforts, the contraction of trade and investment between us is less severe than the average.

All these reinforced my confidence for the future. As China is reconfiguring its economy towards long-term growth, it will provide more opportunties to the European enterprises, which enjoy a leading edge in technical application, managerial expertise and marketing capability. On this point, I find a voice from this Chamber expressing the same confidence. The very first line of this year's Position Paper reads: European Business views the Chinese market as more important than ever.

Ladies and Gentlemen,

The Chinese Government has always encouraged and tried its best to facilitate foreign investment in China. There should be no doubt that China will continue pursuing such an open policy. The government will continue improving the environment for foreign investment. In fact, a policy review is underway right now, which will provide a framework for modifications on the current regulatory portfolio of foreign investment.

So, are there anything new?

Let me name a few.

First, there will be broader market access. I read the Chamber's paper and understand this is where you have most complaints. Today, I want to make it clear that China is ready to expand market access to foreign investors, particularly in service industries, and the limitation on share-holding percentage will relax.

Secondly, there will be new models and new areas for investment. China will permit domestic listing of foreign companies once they fit in all relevant conditions. We are directing more investment into high-tech industires, service industries, and industries involving clean energy, energy saving and environmental protection. I hope they will become the new growth points for the EU companies.

Thirdly, there will be a better legal and policy framework. China has been working hard to build an environment for foreign investment that is open, transparent, business-friendly and fair for competition. To achieve this goal, reforms in investment management system will continue. We will improve the services to foreign-invested enterprises, granting them national treatment in the end.

Fourthly, there will be stricter protection of intellectual property rights. Recent investigation and the court ruling of the "Tomato Garden" Windows system piracy was widely regarded as a landmark victory in software protection. We will continue strengthening our IPR protection mechanism and the law enforcement against IPR violations.

Ladies and Gentlemen,

I feel very inspired and excited, when a survey shows that most members of this Chamber are comtemplating new strategy for business expansion in China. I sincerely appreciate your confidence and commend your vision. I know that not every business in China went on well as expected at every time. But I do wish you look at China from a strategic and long-term point of view and find new niches in this constantly broadening market. I wish your business in China great success and your investment as profitable as ever before, or even more rewarding.

Finally, I'd like to express my gratitude to the Chamber for promoting EU's investments in China over the past 9 years. My special thank goes to President Wuttke for your effort in bringing up the role of the Chamber and putting through more useful suggestions and recommendations. I hope that the Chamber will play a more prominent role in pushing business cooperation between China and the EU. My colleague and I are always ready to give you a hand.

I also hope that the Chamber will help the Chinese side to address our concerns, such as China's market economy status, anti-dumping cases, EU's restrictions on high-tech export and difficult visa access to Chinese business people. I believe when we work together more closely, there will be a brighter future for China-EU economic cooperation.

Thank you for your attention. I look forward to your comments and suggestions.