Speech by Ambassador Zhou Wenzhong

At the CNA Luncheon

May 21, 2008

Mr. David Finkelstein,

Ladies and Gentlemen,

 

Thank you very much for your kind introduction. I am very glad to come to the CNA luncheon. I still keep a fresh memory of my visit to the CNA shortly after my arrival as ambassador in 2005.

I wish to thank David and all the others here today for your condolences and sympathy to the families of the victims and injured during the tragic earthquake in Sichuan Province of China. We have been working day and night to find any survivors. We are also trying our best to resettle the massive number of displaced people. We are confident that, with your support and blessings, the Chinese Government and people will overcome the difficulties and bring life back to normal as soon as possible.

 

I would like to use this opportunity to brief you on the development of China-U.S. relations. The Chinese Government attaches great importance to China-U.S. relations. It is one of China's most important bilateral relationships. We are committed to building long-term friendship and cooperation with the United States based on the principles of the three Sino-U.S. Joint Communiqués.

In recent years, our two countries have worked together and kept a steady and positive momentum in our constructive and cooperative relationship.

 

First, there are close high level exchanges and dialogue between  our two countries. President Hu Jintao and President Bush held 16 meetings and had over 20 telephone conversations since 2001 when President Bush came into office. Just a couple of days ago, they had another phone conversation over the devastating earthquake, Tibet and other important issues. In less than a month's time, China and the United States will hold the 4th round of the Strategic Economic Dialogue.  Early this year, Deputy Secretary of State Negroponte went to China for the 5^th round of the Strategic Dialogue. He was there again two weeks ago. These dialogues have provided an important platform for the two countries to have strategic and substantive communications with each other in political and economic fields. In addition, we also keep in close contact with each other through more than 60 bilateral working mechanisms in various areas.

 

Second, China-U.S. trade and economic cooperation have brought enormous and real benefits to the peoples of our two countries.

Mutual economic complementarity has enabled our economic cooperation and trade to grow fast and be mutually beneficial. In 2007, China-US trade hit a new record of over 302 billion U.S. dollars, which was 15% more than 2006 and over 120 times the trade total when our countries established diplomatic relationship in 1979. Now, China and the United State are the second largest trading partners of each other. The United States is the second largest market for Chinese products and China is the third largest and fastest growing market for US exports. From 2000 to 2007, US total goods export increased by 44%. Its export to China alone grew by 301% in the same period.

According to the estimate by Morgan Stanley, about 4 to 8 million job opportunities in the United States are related to trade with China. The quality and affordable products from China satisfied the consumer demands in the United States and saved American consumers roughly 600 billion dollars in the past decade.

 

Direct US investment in China proves profitable for US companies. In 2006, US companies realized over 80 billion dollars sales in China. With the total profit of 10 billion dollars, the returns on investment ratio is 17%. According to the 2008 White Paper on American Business in China released on April 28 by AmCham China, AmCham Shanghai and AmCham South China, 74% of US businesses in China were profitable. A survey by US-China Business Council published in October 2007 showed that two-thirds of the US companies confirmed that their China-based operations had an equal or higher profitability rate than the company's global rate.

 

Third, the educational, cultural, scientific and technological, and military exchanges between our two countries continue to increase. They have greatly contributed to mutual understanding  of Chinese and American peoples.

In the past thirty years, nearly 400,000 Chinese studied in the United States, and right now, there are over 90,000 Chinese students, researchers or visiting scholars enrolled in the universities here. Over 10,000 American students are studying in China.

Over 40 Confucius Institutes are established throughout the United States. In addition, over 100,000 elementary, high school and college students in America are studying Chinese.

 

Fourth, better relations and cooperation between our two countries contribute to peace, stability and prosperity in Asia Pacific and the rest of the world.

Recent years have seen increasingly frequent interactions between China and the United States in the global context. On many issues affecting our world today, from terrorism, proliferation, regional hot spots, cross-border crimes to energy security, climate change, disease control and prevention, and disaster mitigation and relief, China and the United States have more and more common interests and broader areas for cooperation.

On the nuclear issue of the Korean Peninsula, the Iran nuclear issue, the Darfur issue of Sudan, Myanmar, Pakistan and the Middle East, China and the United States always stay in touch and engage in dialogue. Such cooperation further demonstrates the strategic and global significance of China-US relations, and effectively upholds and advances peace, stability and prosperity in the Asia-Pacific region and the rest of the world.

 

Fifth, developing China-US relations requires both countries to adopt a strategic approach and continue to advance the shared interests.

We believe that both China and the U.S. have significant influence in the world, and the two countries should always proceed from a strategic height when judging and approaching the bilateral relationship so as to push for continued progress of the constructive and cooperative relationship. President Bush has also said that when China and the United States work together, we can achieve great things. We must always steer our bilateral relations in the right direction, bear in mind the fundamental interests of our peoples and commit ourselves to expanding mutually beneficial cooperation.

 

The common interests of China and the United States are more extensive and interwoven. On the strategic level, we both want peace and prosperity in the Asia-Pacific region and the world at large, and we are both committed to stabilizing, developing, reforming and improving the existing international order.

 

In the security area, the growing challenges, such as terrorism, proliferation of WMD, energy security, financial security, infectious diseases and environmental degradation, threaten the interests and well-being of all mankind.

China stands ready to continue to strengthen the existing exchanges and cooperation with the United States in a wide range of areas, including counter-terrorism, non-proliferation, military exchanges, law enforcement, energy, environmental protection, aviation, science and technology, education, culture, public health as well as friendship between the younger generations. We should also vigorously explore new areas of cooperation and build more powerful "engines" for China-U.S. relations.

 

On the other hand, there are also some complicated factors and issues in China-U.S. relations that we should not ignore, including the  Taiwan issue, Tibet issue, Olympic Games, IPR protection issue, human rights issue and the so-called China threat. In the limited time available, I will only touch upon some of them.

 

First, about Taiwan. Yesterday,Mr. Ma Ying-jeou became the new leader. At present, situation in the Taiwan Strait is moving toward relaxation. People on the two sides of the Strait are showing a stronger desire for more exchanges and cooperation. During a recent meeting with Mr. Lien Chan, the Honorary Chairman of the Kuomintang Party,  General Secretary Hu Jintao pointed out that there have been positive changes in Taiwan, and that relationship across the Taiwan Strait is showing a good momentum. The two sides should make joint efforts to build mutual trust, put aside their disputes, seek common ground while preserving differences, and work for win-win. The two sides should truly work for the wellbeing of the compatriots on both sides of the Strait, and for a new phase of peaceful development of cross-Strait relations.

We hope that the United States will honor its commitment of pursuing the one China policy and the three joint communiqués, properly handle the Taiwan question, and work with China to safeguard cross-Strait peace and stability. This is our common interest.

 

Second, about Olympic Games. In less than 100 days, the 29^th Olympic Games will be held in Beijing. "One world, one dream" speaks volumes for the yearning of the Chinese people to be an active part of the international community, and the sincerity in their commitment to world peace and development. The Beijing Olympics is not the business of China only, but that of the whole world. It is more of a world's grand gathering for peace and friendship. We are confident that with the support of the international community, we will have a unique and successful Olympic Games in Beijing. Any attempt to politicize the Olympic Games, or use it for any political agenda, runs counter to the purpose of the Olympics, and will get nowhere.

 

Third, about China's military modernization. I have noted that due to lack of knowledge of China, some people in the Untied States still have misunderstandings of and concern over China's defense. I will talk a little bit more about modernization of China's national defense.

 

We are trying to achieve modernization of our defense in the context of the overall development of the nation. But China's national defense policy is defensive in nature. It mainly includes: protect national security and unity and the interest of national development; realize comprehensive, balanced and sustainable development of China's national defense and armed forces; enhance efforts to improve the competence of the armed forces featuring information technology; carry out the strategic principle of active national defense; adhere to the nuclear strategy of self defense; and build a security environment for peaceful development of China.

 

The Chinese military is working vigorously to carry out the new security concept featuring mutual trust, mutual benefit, equality and coordination. China has published five white papers on national defense since 1995. The Chinese armed forces are actively engaged in bilateral defense consultation and multi-lateral security dialogue with the Untied States, Russia, Japan, Australia, the United Kingdom, France, Pakistan, Mongolia, Thailand, Vietnam, the Philippines, South Africa and Italy. Face-to-face dialogue has helped improve the channels for increasing military mutual trust.

 

The Chinese armed forces are widening its areas of opening up to the outside world. Since 2000, we have invited foreign military observers and military attachés in China to view China's military exercises on a number of occasions. Since 2001, the Chinese armed forces has conducted more joint exercises with foreign militaries from more countries, and covering more areas.

 

As for China's military spending, I can responsibly say that we have a very strict legal procedure for defense budget. What we made public is true and credible. A very large part of defense budget growth is used to make up the increase of commodities prices, improve the livelihood of the servicemen, and ensure better logistics. China's military will not catch up with those of developed countries in a short period of time. China's defense expenditure is at a low level vis-à-vis China's geographical environment, land area, and per capita defense spending. And China is steadily improving its transparency following the principle of mutual trust, responsibility, security and equality.

 

All in all, China's military modernization will always be defensive in nature. It is in the need of maintaining sovereignty, security and unity. It features openness and cooperation. We are ready to show that the improvement of China's defense capability means the growth of the forces for world peace. China's modernization is not arms race, and it will not threaten anyone.

 

In recent years, there were frequent exchanges of visits at the senior level. Deputy Chief of General Staff of the People's Liberation Army Ge Zhenfeng and Chinese Navy commander Wu Shengli visited the United States. Defense Secretary Gates, the then Chairman of the Joint Chiefs of Staff Pace, and the then Navy Chief of Operations and now Chairman of the Joint Chiefs of Staff Michael Mullen visited China. These senior exchanges have increased mutual understanding and mutual trust, and expanded areas for practical cooperation between the two sides.

 

Early this year, U.S. Pacific Commander Keating visited China again. The Chinese side agreed with the U.S. proposal to enhance exchanges among mid-aged and young officers, and mutual visits by the two navies, and to view multi-lateral and bilateral joint military exercises. The two sides concluded the bilateral working defense consultation by signing an agreement on opening a direct secure telephone line between the two defense ministries. This is a new step toward greater political and military mutual trust and closer exchanges and cooperation. On the whole, China is positive toward developing relations between the two militaries. We look forward to increasing mutual understanding and trust through senior visits and exchanges in various areas.

 

Ladies and Gentlemen,

 

China, a country with one-fifth of the world's population, is committed to the path of peaceful development, building a harmonious society, and promoting the building of a harmonious world. This has been proved, and will continue to be proved, to be an important positive factor in international relations, and that China will make greater contribution to world peace and common development.

 

Thank you.