London, 8 September 2011

The Rt. Honorable Chancellor Osborne,
Dear Colleagues,

I am very pleased to co-chair with Chancellor Osborne the Fourth China-UK Economic and Financial Dialogue. The Chinese delegation thanks the UK side for the thoughtful arrangements.

During Prime Minister Cameron's visit to China in last November, leaders of the two countries pointed out the need to draw a good plan for our bilateral relations from a global and strategic perspective of the 21st century. When Premier Wen Jiabao paid an official visit to the UK last June, the two sides identified new cooperation priorities and signed a total of 12 cooperation documents. The main task of this round of dialogue is therefore, to act on the important agreement reached by our leaders and promote the healthy development of China-UK comprehensive strategic partnership with concrete steps.

The current world economic situation is highly complex and uncertain, and there is increasing fluctuation in the international financial market. As every family has its own problems, so does every economy. Europe is confronted with a severe sovereign debt crisis, the United States continues to face sluggish job and property markets, Japan is plagued by weak economic growth, while emerging markets and developing countries suffer from mounting inflationary pressure. To ensure economic and financial stability and promote strong, sustainable and balanced growth of the world economy is the top priority for all countries. To resolve the European debt crisis requires the European Union, the Euro zone countries in particular, to reach consensus on effective rescue measures, and put them into speedy implementation through cooperation and coordination. A stable European economy is not only essential for global economic recovery, but also bears on the healthy and steady development of the Chinese economy. China has confidence in the European economy and the euro. We support the measures adopted by the Euro zone, the EU and IMF and believe that the Europe has the ability and wisdom to overcome its current difficulties and come out of the crisis.

China's economy is in good shape on the whole. But we also face multiple challenges at home and from abroad. In response to the challenges, the Chinese government has put and are putting in place a series of macroeconomic policy adjustments. By pursuing a proactive fiscal policy and a prudent monetary policy, and endeavoring to adjust the structure and curb inflation while securing growth, we strive to maintain sustained and steady economic growth. We hope that the steps taken by the UK to revitalize its economy and maintain fiscal sustainability will produce results as soon as possible. The two sides should share information and strengthen communication on major issues concerning our two economies.

The economies of China and the UK are highly complementary and enjoy enormous cooperation potential. China is implementing its 12th Five-Year Plan, while the UK has rolled out the Plan for Growth and will host the Olympic Games in London next year. All these will bring new opportunities for China-UK economic cooperation. The two sides should harness their respective strengths, deepen cooperation in such fields as the economy, trade, investment, finance, science, technology and tourism, create new bright spots of cooperation in infrastructure, advanced manufacturing, new energy, energy conservation and environmental protection, and work hard to bring bilateral trade to US$100 billion by 2015. I hope our two sides will step up exchange and cooperation in areas such as financial regulatory reform, risk prevention, product innovation, information sharing and personnel training.

Full accommodation of each other's concerns constitutes an important basis for cooperation and dialogue. China has made good progress in addressing the concerns of the UK side, including those on IPR protection and market access. The special campaign of the Chinese government to combat IPR infringement and counterfeiting products has produced marked results and the use of legal software is being promoted across the board. We hope the UK will render active support to Chinese companies in making investment in the UK and continue to encourage the European Union to relax its control over high-tech exports to China and recognize China's market economy status at an early date.

As important members of the G20, China and the UK should maintain close communication at all levels and work with other G20 members in the spirit of solidarity to strengthen macroeconomic policy coordination, steadily advance the reform of the international monetary and financial systems, oppose trade protectionism, prevent the politicization of economic issues and ensure the success of the Cannes summit.

Dear colleagues,

The China-UK Economic and Financial dialogue is an important platform for China-UK economic cooperation. I am confident that as long as our two sides work in a constructive spirit of cooperation, bear in mind both the short-term interests and long-term ones, conduct exchanges in a candid and in-depth manner, this round of dialogue will produce more results that benefit both countries.

I wish this round of dialogue full success.

Thank you.