Meeting the Challenges: A Historical Record of China’s Development—Speeches by Wen Jiabao at the World Economic Forum Events

2. Premier Wen Answers Questions at the Opening Ceremony and at a Meeting with Entrepreneurs

191 PREMIER WEN ANSWERS QUESTIONS AT THE OPENING CEREMONY AND AT A MEETING WITH ENTREPRENEURS (14 September 2011, Dalian) On 14 September 2011, Premier Wen Jiabao attended the opening ceremony of the fifth Summer Davos Forum in Dalian and also met with entrepreneurs. He answered questions from Klaus Schwab, the Executive Chairman of the World Economic Forum, and business representatives. Q: Mr. Premier, you mentioned in your speech the challenges facing many countries in the world, especially in the financial sector. My question is: What measures can China take to help the international community, especially the affected European countries and the United States, cope with these financial challenges? Wen Jiabao: If we take a look at the current international and financial situation, we will see that uncertainties and destabilizing factors are growing in the context of a slowly recovering world economy. Some major economies are experiencing sluggish growth MeetingTheChallengesEN_FA02_17Dec2013.indd 191 MeetingTheChallengesEN_FA02_17Dec2013.indd 191 19/12/13 11:26 AM 19/12/13 11:26 AM MEETING THE CHALLENGES 192 and high unemployment. The United States now faces three tasks: the control of debt, the reduction of the budget deficit, and the creation of jobs through economic growth. Some European countries are in a sovereign debt crisis, and what is most important is that they stem the spread of the crisis. The volatility of the US dollar has destabilized international commodity prices, bringing inflationary pressures to the emerging economies. Under these circumstances, China has become inextricably linked with global development. We must first put our own house in order, and at the same time, play our part in reforming the international economic and financial systems, maintaining world economic stability and development, and promoting robust, sustainable , and balanced economic growth. As the largest developed country in the world, the United States has a strong economy, a solid scientific and technological foundation, and a rich talent pool. We are confident that the United States can overcome its difficulties and achieve sustained economic recovery. We hope that the United States will pursue the right economic policies, maintain fiscal and financial stability, and uphold the interests and confidence of global investors. When I met President Obama last year, I proposed that China and the United States should engage in largescale financial and economic cooperation. This proposal has two key components. First, the United States needs to open its markets to investments by Chinese enterprises to turn debt into investment and enhance U.S. employment. Second, the United States needs to export more to China. The United States now holds the key to this problem and should relax its export restrictions. Former U.S. Commerce Secretary Gary Locke once said that every 1 percent increase in U.S. exports to East Asia will create 100,000 new jobs in the United States. President Obama appreciated my proposal, and I hope that China and the MeetingTheChallengesEN_FA02_17Dec2013.indd 192 MeetingTheChallengesEN_FA02_17Dec2013.indd 192 19/12/13 11:26 AM 19/12/13 11:26 AM 2011 SUMMER DAVOS FORUM 193 United States will adopt such a positive approach to address their trade imbalances and enhance their business cooperation. Europe is China’s comprehensive strategic partner, and we have followed closely the economic development and difficulties in Europe.1 When some European countries run into sovereign debt crisis and economic distress, we reiterated on many occasions that we are ready to help and will continue to invest in Europe. In a recent phone call with President Barroso of the European Commission, I again clearly told him that China believes in Europe’s ability to overcome the difficulties and is willing to make more investments in Europe.2 At the same time, I hope that leaders of the EU and some European countries will also view China-EU relations from a strategic perspective. For instance, they should recognize China’s full market economy status. As a matter of fact, according to the agreed-upon terms of China’s WTO membership, China will be internationally recognized as a full market economy in 2016. To show goodwill a few years in advance is the way friends should treat each other. Next month, I will meet with the EU leaders and I hope breakthroughs can be made on this issue during that meeting.3 Japan is a close neighbor of China. Both countries have a lot to offer each other economically and through large bilateral trade. The challenges confronting Japan now...