Ladies and Gentlemen,

    China and ASEAN have a combined population of 1.8 billion, and this represents a huge market. The two sides are complementary in resources, industrial structure and trade, and both are experiencing rapid development. All this promises a great future for our cooperation. We must seize this rare opportunity to broaden, enrich and upgrade our cooperation. To this end, I wish to propose the following:

    First, expand trade. Both sides should work for a more enabling trading environment to facilitate trade. While continuing to promote trade in traditional commodities, the two sides should endeavor to expand trade in high value-added products including mechanical, electrical and hi-tech products. China has a trade deficit with ASEAN. But we are still committed to further opening market and increasing import from ASEAN.

    Second, deepen cooperation in investment. Both sides should provide better investment promotion services to accelerate investment facilitation. The Chinese Government will honor its pledge made last year of providing five billion US dollars of preferential loans to support Chinese companies in investing and setting up business ventures in ASEAN countries. We encourage them to join in the development in ASEAN countries of trade and economic cooperation zones that have sound infrastructure and production chains linking different sectors and will spur local development. China also welcomes more ASEAN investment and greater participation in China's economic development.

    Third, upgrade economic and technological cooperation. The Chinese and ASEAN companies should fully exploit the complementarity between the two sides in industry, technology and resources to enhance cooperation in agriculture, manufacturing, infrastructure, resources development and processing by undertaking investment projects in diversified forms such as project contracting, equity holdings and technological cooperation. China will encourage Chinese companies to transfer applicable technologies to ASEAN. It will continue to provide human resources training to ASEAN and extend economic and technical assistance to less developed ASEAN countries to the best of its ability.