Speech by Chairman Wu Bangguo
Of the Standing Committee of China's National People's Congress
At the Fifth Western China International Cooperation Forum

Chengdu, 26 September 2012

Ladies and Gentlemen,
Dear Friends,

I am glad to join so many old and new friends here in Chengdu, known as the Land of Abundance, in the pleasant season of autumn, for the 13th Western China International Fair and the 5th Western China International Cooperation Forum. Let me begin by expressing, on behalf of the Chinese government, our warmest congratulations on both the Fair and the Forum and our sincere welcome to all distinguished participants coming from around the world. I wish this Fair and the Forum a complete success.

The Western China International Fair and Western China International Cooperation Forum have, since their inauguration, witnessed concerted efforts from various quarters and attracted extensive attention at home and abroad thanks to distinct themes and down-to-earth styles. Representatives of world organizations, senior officials of national governments, industrial and business leaders, experts and scholars have come here in large numbers to discuss issues of development and cooperation and conduct such activities as trade and investment promotion, international procurement and project negotiations. The fruitful results of win-win cooperation have given the Fair and Forum an increasing appeal, and made them an important platform for enhanced economic cooperation between China's western region and other countries, Pan-Asian countries in particular. Indeed, they have become a key window on what China's western region achieves in economic and social development.

In keeping with its 12th Five-Year Plan that calls for scientific development and faster shift of the growth model, China is focusing greater attention on shifting the growth model, adjusting the economic structure, promoting industrial upgrading, enhancing innovation, and ensuring continued improvement of people's livelihood. We are giving top priority to the quality and cost-effectiveness of economic growth, and to a balanced and more sustainable growth, so as to make a substantive progress in shifting the growth model. Since the beginning of the year, despite facing a more complicated domestic and international economic landscape, we have adhered to scientific development and persevered in making progress while maintaining stability. Our overall economic and social situation is sound. Both economic growth rate and CPI rises are kept within the targeted range. Thanks to fairly rapid growth in employment and people's income, social harmony and stability have been maintained. We have full confidence in China's economic future.

Ladies and Gentlemen,

Dear Friends,

China's western region is a vast expanse of land with rich resources and a time-honored history. Covering 12 provinces, autonomous regions and municipalities, it accounts for 71.5% of China's territory and 27.5% of its population, and has 85% of China's total land boundary. All this gives the region a huge potential for development. The implementation of China's Western Development Strategy since 2000 has injected a strong growth impetus to the region, which is booming with vigor and vitality.

The advantage of a late comer has become more obvious. In the

11th Five-Year Plan period, the western region reported an average annual GDP growth of 13.6%, an average annual investment growth of 28.5%, and an average annual fiscal revenue growth of 26.1%, which are 2.4, 2.8 and 4.2 percentage points higher than the national average. Major economic indicators of the western region in 2010 more than doubled those in 2005 and more than quadrupled those in 2000. In the course of 10 years, income of urban and rural dwellers increased by 2 times and 1.7 times respectively. In the first half of the year, despite volatility on the global economic scene and growing economic difficulties at home, China's western region maintained a high growth rate of 12.3% and a high investment growth rate of 26.5%, 4.5 and 6.1 percentage points higher than the national average.

Capacity to support economic and social development has grown stronger. A total of 165 key projects have been launched so far with a combined investment of 3.1 trillion yuan. Road traffic mileage has increased by 1.09 million kilometers, 22.8 thousand kilometers of which are high-way. Rail traffic mileage has increased by 15 thousand kilometers. The number of civil airports has increased to 90, accounting for 50% of the national total. A comprehensively structured transportation network has taken shape initially. Such landmark projects as the west-to-east gas pipeline and electric power transmission line have become operational. And such key ecological projects as reclaiming forests from agriculture and grassland from animal farming and building the Sanjiangyuan nature reserve are in full implementation.

A framework of international opening has basically taken shape.As things stand now, foreign direct investment totaling 55.7 billion US dollars has been utilized in China's western region. Some 20,000 foreign-invested enterprises, including over 200 of the world's top 500, have been allowed to operate in the region. Chongqing, Chengdu, Xi'an, Kunming and other in-land economic heavy weights are emerging vigorously. Kashi, Huo'erguosi and other development zones in Xinjiang, and the key experiment zones of development and openness in Dongxing of Guangxi, Ruili of Yunnan and Manzhouli of Inner Mongolia are coming of age. The layout of border ports and infrastructure development has become more complete. Policies for border trade are more flexible. Such platforms as the Western China International Fair, China-ASEAN Expo and China-Eurasia Expo have become increasingly effective in advancing regional economic cooperation.

Today, China's western region has emerged as a key growth pole in the country's economy, offering not only broader horizon for China's development but also rare opportunities for other countries, particularly Pan-Asian countries, to step up economic cooperation with China. Giant multinationals and competitive small and medium-sized enterprises alike will find in this region cooperation projects that are suited to their conditions and promise handsome returns.

What I want to emphasize here is that the western development strategy is a major policy decision made by the Chinese government in accordance with the overall need of China's socialist modernization and it is very high on China's agenda for coordinated regional development. We are determined to implement the strategy for a new round of western development with more forceful and effective measures. We will step up the central budgetary input in the western region, put in place preferential policies conducive to faster development in western China, and open the region still wider to the rest of the country and the world at large. We are convinced that China's western region will have an even better future.

Ladies and Gentlemen,

Dear Friends,

The profound impacts of the international financial crisis have gone on unabated. Pondering on the lessons of the crisis, both the developed and emerging economies have recognized the crucial importance of the real economy. This has been proved by the fact that the Forum, with the theme "Pan-Asian Cooperation and Real Economy Development", has attracted over 800 participants, the highest since the inception of the event. As a large developing country with a huge population and a weak economic foundation, China has all along attached top priority to the development of the real economy. In implementing the western development strategy, it is imperative to take advantage of the region's competitive edge in land, resources, labor force and other factors, vigorously upgrade existing traditional industries, properly make room for industrial relocation home and abroad, foster strategic emerging industries, and accelerate the development of a modern industrial system. Much can be done in the cooperation between China's western region and other countries, particularly Pan-Asian countries, over the development of the real economy, which holds out a promising future.

We need to make closer real economy cooperation a key handle on deepening trade and economic ties, and combine real economy cooperation with industrial upgrading and transformation, as this will allow us to draw on each other's strengths and achieve common prosperity. We should step up cooperation for infrastructure development. While giving emphasis to transportation, energy and telecommunications, we should build more railways, highways, waterways, civil aviation facilities and pipeline and internet networks so as to enhance connectivity with inter-regional and cross-border infrastructure. We should expand industrial cooperation, bringing out greater potential of modern agriculture, strategic emerging industries, advanced manufacturing and modern services, jointly developing new and renewable energy sources, intensifying cooperation in R&D and technology transfer, and promoting the development of green and circular economies. We should improve cooperation mechanisms, doing a good job with existing free trade areas, accelerating regional economic integration, promoting trade and investment liberalization and facilitation, jointly resisting trade protectionism of all forms, and building a new international economic order that is more just and more equitable.

Ladies and Gentlemen,

Dear Friends,

China's western region is beaming with vitality, and Pan-Asian cooperation is full of opportunities. Let us join hands and work towards a better future through win-win cooperation and common development.

Thank you.