We have noticed that the United States is pushing forward negotiations on the Trans-Pacific Partnership (TPP) and preparing to launch negotiations with Europe on a Transatlantic Trade and Investment Partnership (TTIP). Given the number of participating countries and the combined size of their economies, these agreements will have a major impact on the pattern of international trade and the process of trade and investment liberalization. In principle, China is open to all cooperation initiatives that are conducive to trade liberalization and regional economic integration. We are happy to see them come to fruition as long as they are consistent with multilateral trading rules and the principles of openness, inclusiveness and transparency. The United States and Europe are major economies and important players in the multilateral trading system. We hope that the relevant negotiations will contribute not only to their respective trade growth, but also to the progress of Doha Round negotiations so that the benefits of free trade can be better shared by the people of developing countries. China is taking active steps to get the wheel of multilateral trading system and the wheel of regional trade arrangements moving at the same time, and we are opposed to trade and investment protectionism in all forms.

I want to point out that the Chinese side is highly concerned about the anti-dumping and countervailing duty investigation recently launched by the EU against Chinese PV products and wireless telecommunication equipments. Anti-dumping and countervailing duty investigation against these two types of products will not only seriously hurt the relevant industries, companies and jobs in China, but also undermine the vital interests of European users and consumers. It serves no one’s interests, but only fuels the rise of protectionism. That is why we are firmly opposed to it. In the current economic environment, countries should work together to uphold a stable and open international trade environment and exercise caution with the use of trade remedy measures. China has consistently called for settling trade frictions through dialogue and consultation. We hope the EU will properly deal with the cases of PV products and wireless telecommunication equipments, uphold the larger interests of China-EU economic relations and the principle of trade liberalization.

Ladies and Gentlemen,

Switzerland is an important international financial center with a well-established and dynamic financial sector. It is home to numerous renowned financial firms and known as the country with the highest density of banks. The city that hosts today’s event, Zurich, is an international financial center. During my visit this time, I will announce with the Swiss leaders the establishment of a financial dialogue mechanism to enhance cooperation on bilateral and international financial issues. Now, I wish to share with you some of my observations on economic and financial issues.

First, we are committed to deepening reform and opening-up of China’s financial sector. Since the beginning of reform and opening-up, China’s financial sector has enjoyed rapid growth together with the modernization of the country. However, to sustain this momentum of growth remains a long and arduous task. Currently, China’s financial sector has a total asset of over RMB 150 trillion and a foreign exchange reserve of US$3.4 trillion. There is a huge potential for making full use of China’s financial assets and reinvigorating the financial market. Going forward, we will unswervingly advance market reform of the financial sector, build a sound modern financial system, accelerate the development of a multi-tiered capital market, and steadily advance the liberalization of interest rate and exchange rate. In the meantime, we will deepen cooperation between Chinese banks and their foreign strategic investors, open the stock, bond and insurance markets in an orderly way, promote the cross-border use of the RMB and, over time, achieve the RMB’s convertibility under the capital account and expand the breadth and depth of opening-up in the financial sector. We will promote reform, development, economic transformation and innovation in the course of opening-up to achieve the sustainable and healthy growth of the Chinese economy. This will also create opportunities for the economic growth and development of the financial industry of the world.

Third, we hope the international financial system will be reformed and improved. China is committed to upholding and building the international political and economic order, and stands ready to fulfill its due obligations as a developing country and an emerging economy. China believes that we need to give priority to and actively advance the reform of the International Monetary Fund (IMF) and the World Bank, and make fuller use of the role of the IMF in resolving the European debt issue. We believe that the existing sound and effective international economic system and rules must be upheld. In the meantime, efforts should be made to push forward reform, strengthen international financial supervision and regulation, encourage regional financial cooperation, and enhance the voice and representation of developing countries. We will continue to work with the international community to pool our wisdom and build consensus, and jointly reform and strengthen the international financial system.

Ladies and Gentlemen,

Switzerland is a front-runner among European countries in growing relations with China, and has set many records in this regard. In the beginning of 1950, soon after the People’s Republic was founded, Switzerland became one of the first countries in the West to recognize China. In 1980, when China had just opened its door to the outside world and when many foreign companies were still unsure about China, a Swiss company launched the first industrial joint venture in China. Entering the new century, when trade protectionism was resurfacing in some countries, Switzerland became the first European country to recognize China’s full market economy status. And this time, Switzerland is again the first country on continental Europe to sign an FTA agreement with China. I am confident that with the joint efforts of the two countries, there will be many more “firsts” in our future relations.

Although China and Switzerland are situated respectively in Asia and Europe, the vast Eurasian continent has brought us together. The Himalayas and the Alps, where the highest peaks of Asia and Europe are, inspire us to meet difficulties head on and scale new height of global economic cooperation. China and Switzerland both have the courage and determination to always be the first in the world, and that is exactly why our bilateral relations have grown from one generation to another and become a model of friendly exchanges between countries with different social systems and culture. We should preserve and promote this enterprising spirit, and ensure China-Switzerland relations will always stay ahead of history, ahead of the times and at the forefront of the world and continue to strive for excellence.

Thank you.