Li Keqiang, Premier of the State Council of the People’s?Republic of China

Berlin, 27 May 2013

Vice Chancellor Philipp R?sler,

Chairman Peter L?scher,

Distinguished Guests,

Ladies and Gentlemen,

I am glad to meet you, Chinese and German business leaders, during my visit to Germany.

Vice Chancellor R?sler has just delivered a warm address. He mentioned the German government’s official reply to the Commission this morning, in which Germany voiced its opposition to the launch of anti-dumping and countervailing duty investigations against Chinese wireless telecommunication equipment. Germany could have replied three days ago. Yet it did not do so until this morning in order to hear the position of the Chinese government. This is a common position between our two countries, which I highly appreciate. The AD&CVD investigations launched by the European Union against Chinese photovoltaic products and wireless telecommunication equipment will cause severe adverse impact on Chinese industries, businesses and employment and hurt European consumers, companies and employment. China hopes to work with the EU to fight against trade protectionism, oppose the abuse of trade remedies and address trade frictions through dialogue and consultation. The world economy is slowly recovering. Europe still faces challenges in overcoming its own difficulties, and China is undergoing economic adjustment. Against this backdrop, opposing trade protectionism is crucial to overcoming these difficulties and meeting challenges.

In his address, the Vice Chancellor also hoped to see more Chinese investment in Germany. Indeed, compared with the bilateral trade volume and German investment in China, Chinese investment in Germany is still modest. We encourage more well based Chinese companies to invest in Germany. This morning, I met with the heads of the Chinese Chamber of Commerce in Germany, whose job is to assist more Chinese companies to make investment in Germany. Chairman L?scher also hopes that China will open wider to the outside. I am paying this visit to promote greater openness and cooperation, in particular, openness towards and cooperation with Germany and Europe.

During my visit, I have had cordial and friendly meetings with German leaders. I had meeting lasting seven hours with Chancellor Merkel and we reached new agreement on boosting China-Germany strategic partnership. I also had a dialogue with German business leaders. China and Germany will continue governmental consultation and annual meeting between heads of government, and make more progress in several dozen mechanisms on cooperation. I have just met with representatives of the China Advisory Council, whose chairman and vice chairmen are heads of well-established and influential financial and industrial corporations of both countries. The founding of this Council not only shows the importance both governments attach to bilateral business relations, but also opens a new channel for conducting business cooperation. This is the first council of its kind set up between China and Germany, an EU country and a major global economy, and it has become a second track for boosting China-Germany business relations. A train can only run fast on two tracks. When governments and businesses work together, both tracks will be able to play their roles and both wheels will turn. In short, China-Germany relations, driven by a powerful hybrid engine, are speeding up along the fast track.

Ladies and Gentlemen,

Since you are quite interested in the Chinese economy and its growth prospect, I will give you a brief update on them.

China will continue to pursue peaceful development. We are making untiring efforts to build China into a modern socialist country that is prosperous, strong, democratic, culturally advanced and harmonious, and realize the Chinese dream, which is the great renewal of the Chinese nation. Our goal is to turn China into a country of initial prosperity in all respects by 2020. This requires us to unswervingly advance reform and opening-up, and promote the balanced development of industralization, IT application, urbanization and agricultural modernization. These endeavors will create huge opportunity for Germany and Europe’s cooperation with China.

China’s total economic output is increasing, and it has maintained a proper rate of growth. Its GDP grew by 7.7% during the first quarter, higher than the 7.5% annual target set at the beginning of the year. At the same time, 4.32 million new jobs were created in urban areas, slightly more than the same period last year. To achieve the goal of doubling China’s GDP and per capita income of 2012 by 2020, we need to maintain an annual growth rate of around 7%. This is not easy for such a large economy as China’s. But we have the condition and the ability to meet this goal. We also need to redouble our efforts. China is a big country with 1.3 billion people, and its accelerating industrialization and urbanization drive will unleash huge development potential. With a per capita GDP of 6,000 US dollars, China has reached the level of a middle income country and there is huge space for upgrading consumption. China’s reform will generate huge dividends, which will further boost market vitality and the internal growth momentum of the economy. China’s economy has reached 52 trillion yuan in size. Each 7.5% growth means an increase of 3.9 trillion yuan in GDP, which is much bigger in size than in the past. We need to maintain sustained, stable and sound growth of China’s economy. The market will thus have a clear and long-term expectation of China’s economic trend.