Respected Chairman Mr. Syed Manzur Elahi,

Excellencies, Distinguished Guests, Dear friends,

Ladies and Gentlemen,

First of all, I would like to extend my sincere thanks to Mr. Debapriya Bhattacharya for his kind invitation. I would also like to express my appreciation to keynote speaker(s) for the intensive study and analysis on the development of China and India and their implications, and extend congratulations to him (them) for the impressive presentation, though it is a little pessimistic in a few points regarding rising China's implications. It is my pleasure and honor to have this opportunity to share with you some highlights about China's development and its implication on the development of Asia, and China's foreign policy towards neighboring countries.

I. Highlights of China's Economic Development

Since adopted the policy of reform and opening up in 1978, China has made remarkable headway in its modernization drive and enjoyed fast and continuous economic growth. From 1978 to 2005, China's GDP grew by an average rate of 9.6%, increasing from US$147.3 billion to US$2.23 trillion, ranking the fourth of the world. Its import and export volume went up from US$20.6 billion to US$1.42 trillion. Its reserve of foreign currencies soared to US$819 billion, five thousand times larger than US$167 million in 1978. The number of its poor rural population dropped from 250 million to 23 million. But we are keenly aware that China remains the world's largest developing country with per capita GDP ranking behind the 100th place. The Chinese people are yet to live a well-off life, and China still faces many difficulties and challenges. To make China's modernization drive a success and bring a prosperous life for all the Chinese people, China has adopted a new concept of development in line with its national conditions and the requirement of the times. That is, to pursue a scientific outlook on development that makes economic and social development people-oriented, comprehensive, balanced and sustainable. We will work to strike a proper balance between urban and rural development, development among regions, economic and social development, development of man and nature, and domestic development and opening wider to the outside world.

II. China's Engagement in Mutual-beneficial Economic Cooperation with other Asian Countries

The process of economic globalization brings both the development opportunities and grave challenges to China. China's sustainable development requires harmonious and prosperous neighboring environment. For years, China has attached great importance and spared no efforts to develop Mutual-beneficial economic cooperation with other Asian countries.

Bilateral trade between China and other Asian Countries has witnessed a fast growth. With import growing at an average annual rate of over 15% in recent years, China is ranked the world's third largest and Asia's largest importer. In 2005, China's import from other Asian countries and areas grew by 19.5% over 2004 to about US$442 billion, accounting for 67% of its total import. The size of China's market will grow even larger with its future development.

The Chinese government takes seriously with the issue of trade imbalance with certain countries, especially LDCs in the region, and has made substantial efforts to raise import from these countries, including sending purchasing missions, providing government subsidies, and according tariff-free access and preferential tariff treatment to many categories of commodities imported from developing countries. The Chinese government will continue to take into positive consideration to grant tariff-free access for more categories of commodities from relevant countries.

Meanwhile, in recent years, overseas investment by Chinese companies has also registered over 20% annual growth, with 80% of it made in Asia. China will encourage more enterprises with reputation and competence to invest in the region. I firmly believe that with China's development, the overseas investing capability will grow even larger.

It is significant to mention that after the Multi-Fiber Arrangement (MFA) expired at the end of 2004, in order to achieve smooth transition of textile trade, the Chinese government on its own initiative took the following measures: adjusting and controlling textile exports through taxation; further lowering the threshold of market access to expand textile import; expanding import from developing countries and LDCs whose textile industries play a pillar role; adjusting and controlling investment in textile industry; further strengthening self-discipline and popularizing international industry standards; enhancing the protection of intellectual property rights including textile products; encouraging Chinese enterprises to make investment overseas, especially in LDCs; strengthening dialogues between bilateral, multilateral governments, industry organizations and enterprises. We are pleased to see that in 2005, export of textile products from related countries experienced significant expanding rather than declining as some had predicted.

As a medium- and low-income developing country, China has done its utmost to support and assist other developing countries in speeding up their development and overcoming economic vulnerability. Back in the year of 1997, when financial crisis struck Asia, China resisted pressure to devalue its currency, thus contributing to Asia's economic stability. At the UN summit last year, Chinese President Hu Jintao declared five measures to increase assistance to other developing countries, including: according zero tariff treatment to certain products from all the 39 LDCs having diplomatic relations with China; expanding its aid programs to the Heavily Indebted Poor Countries (HIPCs) and LDCs and writing off all the overdue parts of the governmental loans owed by HIPCs; providing US$10 billion in concessional loans and preferential export buyer's credit to developing countries to improve their infrastructure and promote cooperation between enterprises on both sides; increasing its assistance by providing anti-malaria drugs and other medicines; helping train 30,000 personnel of various professions for developing countries within the next three years to help speed up their human resources development.

As President Hu Jintao said, "China's development is closely bound up with the development of the whole world." We believe that China's development will certainly contribute to the prosperity of Asia while prosperity in Asia will in turn benefit China.

III. China-South Asia Cooperation

China's development injects fresh vigor to regional cooperation in Asia. China has been extensively involved in the various mechanisms of Asia-based regional cooperation, emphasizing its cooperation and coordination with all the parties and promoting regional economic integration.

South Asia is an important part of Asia and enjoys increasing influence in Asia and even in the world. The region of China and South Asia contains the world's largest potential market of 2.8 billion people, almost half of the world population, has vast territory and rich resources, was undeveloped but is reviving through its internal development and regional cooperation. South Asia occupies an important position in China's diplomatic relations with neighboring countries.

Maintaining the common wish to seek peace, strive for stability and promote development, China and South Asia are partners for peaceful development with strong economic complementarities, great potentials and bright prospects for cooperation. In the past several years, significant developments have been achieved through enhanced top-level exchanges, expanded economic and trade cooperation, frequent exchanges in various fields as well as deepened coordination in international and regional affairs. China's current trade volume with all South Asian nations has reached close to US$27 billion in 2005. However, compared to US$128.9 billion trade volume with ASEAN countries and US$218.7 billion with European Union in 2005, we still have a long way ahead of us to exploit the potential of our economic cooperation.

As the most important regional cooperation organization in South Asia, SAARC enjoys huge potential and bright prospects. It is delighted to mention that the 13th SAARC Summit held in Dhaka last November decided to accord observer status to China. I firmly believe that the establishment of relationship between China and SAARC will substantially contribute to the mutual-beneficial cooperation for a win-win result between China and South Asian countries.

IV. China's Foreign Policy towards Neighbouring Countries

Several weeks ago, China central meeting on foreign affairs was held in Beijing, with most of Chinese top leaders attended. The meeting stressed foreign affairs work should center around the primary task of development, hold high the banner of "peace, development and cooperation", adhere to an independent foreign policy of peace, "unswervingly" pursue the peaceful development road and be multidimensional. China will adhere to a "mutual benefit and win-win" strategy to pushing forward the construction of a harmonious world of abiding peace and common prosperity. It is an inevitable choice for China to implement the diplomatic guideline of "being a good neighbor and partner" and the policy of "fostering an amicable, peaceful and prosperous neighborhood" and is committed to developing friendly cooperative relations with neighboring countries and achieve peaceful development.

V. Conclusion

"One single flower does not make a spring; it is spring only when all the flowers are blooming." The development of one or several countries does not constitute the real development or prosperity of Asia, the sustained prosperity and progress of Asia is in the common interests of all countries in the region.

It is true that China is a big country with fast development. At the same time China has proved and will continue to prove that it is a responsible country. What China pursues is not hegemony but harmony, not command but contribute, not super power but sustained peace, not threat to the neighbors but thriving for the neighbors. That is the concept of "peaceful development", and that is, what I have learned during my 30-year diplomatic career, one half of which working in Bangladesh, the most important implication of China's rising.

Thank you.