Speech by H.E. Li Keqiang
Vice Premier of the State Council of the People's Republic of China
At the Opening Ceremony of
The 2012 China (Ningxia) International Investment and Trade Fair
And the 3rd China-Arab States Economic and Trade Forum

12 September 2012

Your Excellency President Francois Bozize,
Your Excellency President Emanuel Mori,
Your Excellency Prime Minister Peter O'Neill,
Distinguished Guests,
Ladies and Gentlemen,
Dear Friends,

Today, the beautiful city of Yinchuan is graced by a galaxy of guests and friends. This year's China (Ningxia) International Investment and Trade Fair and China-Arab States Economic and Trade Forum has brought together so many distinguished guests from Arab countries, other emerging markets and developing countries, and developed countries. This testifies to people's shared wish to seek opportunities through opening up and promote development through cooperation. Hereby, let me extend, on behalf of the Chinese government, warm congratulations on the opening of the fair and forum and sincere welcome to all the friends from afar.

The international financial crisis is not yet over, the recovery of the world economy is difficult and tortuous, and the downward pressure on the economy still exists. No country can stay immune to it. We have noted that, countries across the globe have moved faster to adjust and innovate in their response to the crisis. Developed countries, with solid strength in science and technology, human and financial resources, and economic foundation, are searching for an effective way to revitalize their economies. Developing countries, by further harnessing their strengths as a late comer and tapping into their own potentials, have maintained relatively fast economic growth, acquired greater importance in the world economy and become an important driving force for the global economy.

Economic progress of emerging markets and developing countries is attributable to their efforts to make full use of their resources and strengths, and to explore and innovate. It is also attributable to the economic globalization and trade liberalization, as well as the ever expanding opening up and sincere cooperation. Most of these countries have long histories and time-honored tradition of exchange and cooperation. Over the years, developing countries have worked relentlessly for national independence, sought strength through unity and played an active role in promoting solidarity and development, advancing South-South cooperation and deepening North-South cooperation. In recent years, cooperation among emerging markets and developing countries has been blossoming, and their mutual trade and investment have grown fast. Coordination and interaction have picked up speed under regional cooperation frameworks such as China-ASEAN cooperation, the Arab free trade area, the Economic Community of Central African States and the Pacific Islands Forum. Dialogue and exchanges among the BRICS countries are increasingly close. Cooperation among emerging markets and developing countries is based on mutual respect, equality and mutual benefit, underpinned by the inherent needs and huge potential of their economic growth and driven by their diversifying markets. Such cooperation echos the call of our time and promises sustainable growth.

Ladies and Gentlemen,

China, being the largest developing country in the world and also an emerging market, is at a critical juncture of development and revitalization. Going forward, we will focus on innovation, transformation and strategic restructuring of our economy. We will anchor our development strategy in expanded domestic demand and parallel advancement of industrialization, urbanization and agricultural modernization. Modernization of China, a country with a population of 1.3 billion, is an unprecedented endeavor in human history. The urbanization of several million people holds out the biggest potential of domestic demand the world will ever see. If we go ahead with structural adjustment, reform, opening up and institutional innovation, this potential will be unleashed and sustain China's long-term, steady and fast economic development. China's enormous market which continues to expand and its complete and multi-tiered industries will provide a variety of options for cooperation between China and other countries and create more development opportunities.

Opening to the west is a major step of China's all-dimensional opening up. We are working toward greater balance and coordination in the regional layout of opening up. While striving for a higher level in opening the coastal areas and the eastern region, we will further open the hinterland and border areas and be vigorous in opening to the west. We are building a number of special economic zones, pilot areas of opening up and development and key border ports in the western region in order to make them gateways for opening to the west. This shows that China, in order to open new markets, places greater importance on coordination between increasing domestic demand and opening wider to the outside, between development and opening up of the western region, and between opening to developed countries and developing countries.

In the past five years, China's trade with other emerging markets and developing countries has nearly doubled. China's direct investment in these countries has increased by over two times. Fruitful results have been made in market liberalization, human resources training and technological exchanges. We are ready to work with emerging markets and developing countries to build even closer business ties. This will enable more countries to join the process of common development and sustained prosperity and lend new vigor and vitality to the world economic recovery.

Ladies and Gentlemen,

Emerging markets and developing countries account for three quarters of all the countries in the world and have four fifths of the world's population. We are an important part of the international community and represent huge potential for global development. While expanding cooperation with developed countries, we should also advance cooperation among emerging markets and developing countries to a new level.

First, we should strengthen strategic cooperation. Emerging markets and developing countries have similar historical experiences and a lot in common. We should strengthen political mutual trust from a strategic height, respect and accommodate each other's core interests and major concerns, coordinate closely in international affairs, and promote the establishment of a new international political and economic order. It's worth emphasizing that there is still a long way to go before the United Nations Millennium Development Goals can be attained, and it is important to keep up the efforts and help each other. The pressing task is to address the impact of the international financial crisis. We need to work together to tide over the difficulties, sustain the momentum of stable development and contribute to strong, sustainable and balanced growth of the world economy.

Second, we must expand mutually beneficial cooperation. Emerging markets and developing countries have distinctive strengths in resource endowments and our markets are mutually complementary. We should further promote trade and investment liberalization and facilitation and transform our comparative strengths into economic strengths by deepening cooperation. We are at similar development stage with overlapping or complementary industrial structures. We can match our industries to extend the industrial chain and deepen cooperation in upgrading traditional industries and cultivating emerging industries. Regional economic integration is the main trend of our times and regional cooperation boasts enormous potential. We should carry out close exchanges to advance regional cooperation.

Third, we should sustain our cooperation. The longer the cooperation, the more productive it will be. An effective mechanism for cooperation between developing countries is not yet fully established and should be built at a quicker pace. Amity between the people holds the key to sound relations between states. We need to carry forward our traditional friendship, deepen people-to-people exchanges, respect diversity of culture and civilization, promote exchanges in such areas as science, education, human resources, culture, tourism and health, expand cooperation in improving people's livelihood, protecting the eco-environment and promoting sustainable development so as to consolidate popular support for cooperation.

In a changing world, neither developed countries nor developing countries can seek development behind closed doors, nor can they address various risks and challenges single-handedly. We need to not only deepen South-South cooperation but also strengthen North-South cooperation, for such cooperation will help developing countries get funding and technologies they need from developed countries and help the latter expand access to rich natural resources and huge markets in developing countries, thus promoting greater development for all. It will also help countries work together to address such global challenges as the financial crisis, natural disasters and food and energy security. At the same time, cooperation among emerging markets and developing countries should also be open to the entire international community and welcome the participation of developed countries so that the cooperation can be further expanded.

Ladies and Gentlemen,

China and Arab states are both cradles of human civilizations and have long been connected by the ancient Silk Road and the Spice Route. With the establishment of the strategic cooperative relations and expanding exchanges and communication across the board, China-Arab states relations have demonstrated strong momentum of growth in the 21st century. Business cooperation is the most dynamic factor in China-Arab states relations. Trade between China and Arab states is approaching US$200 billion, and two-way investment has grown by eight times in the past decade. We are good friends on the international stage, good partners in economic exchanges and good brothers in development affairs. Our cooperation is mutually beneficial cooperation between developing countries. It is all-round, open and inclusive. It embodies cultural exchanges and interactions and mutual respect of different ethnic customs and religious traditions, and therefore has strong appeal, cohesion and vitality.

The Arab world is strategically located and enjoys unique advantages in natural resources. Many countries in the region are committed to accelerating economic transformation, promoting industrial diversification and urbanization, strengthening infrastructure development and improving people's livelihood. China has enjoyed sustained and fast economic growth and boasts comparative advantage in technology, industry and market. China-Arab states cooperation has broad prospects and should be further expanded and upgraded. China is a major, long-term and stable market for the competitive products of Arab states. We need to strengthen cooperation between upstream and downstream industries while consolidating relations in energy trade. We are ready to buy more competitive consumer products from Arab states, and we hope more Arab businesses will come to China to invest, do business, and expand cooperation with China in financial, petrochemical, renewable energy and other areas. China will continue to encourage Chinese enterprises with solid strength to develop manufacturing industry and participate in infrastructure development in Arab states.

Ningxia has been an important bond for China-Arab exchanges and cooperation since ancient times. Today's Ningxia is more vibrant and open. Recently, the Chinese government has approved the establishment of an inland open economic pilot zone in Ningxia and a comprehensive bonded area in Yinchuan. The decision will be supported by a full range of measures. We support Ningxia and the Arab region in strengthening business and cultural exchanges and building a new platform for China-Arab states cooperation.

Ladies and Gentlemen,

As an old saying in China goes, to see further, one needs to stand on higher ground. There is a similar saying in the Arab world: the deeper you dig, the sweeter the water is. I believe as long as countries stand on higher ground and deepen their efforts on opening-up, cooperation and development, they will create a win-win situation, bring more benefits to people of all countries and further promote global development.

To conclude, I wish the 2012 China (Ningxia) International Investment and Trade Fair and the 3rd China-Arab States Economic and Trade Forum a complete success. I wish all the guests good health and a happy stay in Yinchuan. Thank you.