Perspectives

I received this in my mail today, which I found quite a wonderful speech.

Wen Jiabao , Premier of the State Council of the People’s Republic of China

2 February 2009

Vice Chancellor Alison Richard, Ladies and Gentlemen,

It gives me great pleasure to come to Cambridge, a world-renowned
university that I have long wanted to visit.. Cambridge has produced
many great scientists and thinkers Isaac Newton, Charles Darwin and
Francis Bacon, to name but a few, and made important contribution to
the progress of human civilization. This year marks the 800th
anniversary of the university. Please accept my warm congratulations.

This is my fourth visit to your country. Despite the great
distance between China and Britain, the friendly exchanges between our
peoples have been on the rise. The successful resolution of the
question of Hong Kong and fruitful cooperation between our two
countries in areas such as economy, trade, culture, education, science
and technology have cemented the foundation of our comprehensive
strategic partnership. Here, I wish to pay high tribute to all those
who have been working tirelessly to promote friendly ties between our
two countries.

The title of my speech today is “See China in the Light of Her
Development”.

My beloved motherland is a country both old and young.

She is old, because she is a big Oriental country with a
civilization stretching back several thousand years. With diligence
and wisdom, the Chinese nation created a splendid civilization and
made significant contributions to the progress of humanity.

She is young, because the People’s Republic is just 60 years old,
and the country began reform and opening-up only 30 years ago. The
Chinese people established the New China after unremitting struggles
and ultimately found a development path suited to China’s national
conditions through painstaking efforts. This is the path of socialism
with Chinese characteristics. Following this path, our ancient
civilization has been rejuvenated.

The key element of China’s reform and opening-up is to free
people’s mind and the most fundamental and significant component is
institutional innovation. Through economic reform, we have built a
socialist market economy, where the market plays a primary role in
allocating resources under government macro-regulation. We have
carried out political reform, promoted democracy and improved the
legal system. People are the masters of the country. We run the
country according to law and endeavor to build a socialist country
under the rule of law.

The essence of China’s reform and opening-up is to put people
first and meet their ever growing material and cultural needs through
releasing and developing productive forces. It aims to give everyone
equal opportunities for all-round development. It aims to protect the
democratic rights of the people and promote stability, harmony and
prosperity across the land. And it aims to safeguard the dignity and
freedom of everyone so that he or she may pursue happiness with
ingenuity and hard work.

Over the past three decades, more than 200 million Chinese have
been lifted out of poverty, the average life expectancy has increased
by 5 years, and the 83 million people with disabilities in China have
received special care from the government and the society. All this
points to the tremendous efforts China has made to protect human
rights. We have introduced free nine-year compulsory education
throughout the country, established the cooperative medical system in
the rural areas and improved the social safety net. The age-old dream
of the Chinese nation is being turned into reality a dream to see the
young educated, the sick treated and the old cared for.

I want to quote from a Tang Dynasty poem to describe what is
happening in China, “From shore to shore it is wide at high tide, and
before fair wind a sail is lifting.” The Chinese people are working
hard to modernize their country. This is a great practice in a large
developing country both ancient and new. The Chinese people, with
destiny in their own hands, are full of confidence in their future.

My beloved motherland is a country that stood numerous
vicissitudes but never gave up.  Earlier in my career, I worked in
northwest China for many years. There, in the boundless desert, grows
a rare variety of tree called euphrates poplar. Rooted over 50 meters
down the ground, they thrive in hostile environments, defying
droughts, sandstorms and salinization. They are known as the “hero
tree”, because a euphrates poplar can live for a thousand years. Even
after it dies, it stands upright for a thousand years, and even after
it falls, it stays intact for another thousand years. I like euphrates
poplar because they symbolize the resilience of the Chinese nation.

Over the millennia, the Chinese nation has weathered numerous
disasters, both natural and man-made, surmounted all kinds of
difficulties and challenges, and made her way to where she proudly
stands today. The long sufferings have only made her a nation of
fortitude and perseverance. The experience of the Chinese nation
attests to a truth: what a nation loses in times of disaster will be
made up for by her progress.

I am reminded of the experience that I had in Wenchuan, Sichuan
Province after the devastating earthquake there last May.. That
earthquake shocked the whole world. It flattened Beichuan Middle
School and claimed many young lives. But only 10 days after the
earthquake, when I went there for the second time, I had before my
eyes new classrooms built on debris by local villagers with planks.
Once again, the campus echoed with the sound of students reading
aloud. I wrote down 4 Chinese characters on the blackboard, meaning “A
country will emerge stronger from adversities.” I have been to
Wenchuan seven times since the earthquake and witnessed countless
touching scenes like this. I am deeply moved by the unyielding spirit
of my people. This great national spirit is the source of strength
which has enabled the Chinese nation to emerge from all the hardships
stronger than before.

With hard work over the past half century and more, China has
achieved great progress. Its total economic output is now one of the
largest in the world. However, we remain a developing country and we
are keenly aware of the big gap that we have with the developed
countries. There has been no fundamental change in our basic national
condition: a big population, weak economic foundation and uneven
development. China’s per capita GDP ranks behind 100 countries in the
world and is only about 1/18 that of Britain.

To basically achieve modernization by the middle of this century,
we must accomplish three major tasks: first, achieve
industrialization, which Europe has long completed, while keeping
abreast of the latest trends of the scientific and technological
revolution; second, promote economic growth while ensuring social
equity and justice; and third, pursue sustainable development at home
while accepting our share of international responsibilities. The
journey ahead will be long and arduous, but no amount of difficulty
will stop the Chinese people from marching forward. Through persistent
efforts, we will reach our goal.

My beloved motherland is a country that values her traditions
while opening her arms to the outside world.

The traditional Chinese culture is rich, extensive and profound.
Harmony, the supreme value cherished in ancient China, lies at the
heart of the Chinese culture. The Book of History, an ancient classic
in China for example, advocates amity among people and friendly
exchanges among nations.

The Chinese cultural tradition values peace as the most precious.
This has nurtured the broad mind of the Chinese nation. The Chinese
nation is generous and tolerant, just as Mother Earth cares for all
living things. She is in constant pursuit of justice, just as the
eternal movement of the Universe.

In the 15th century, the famous Chinese navigator Zheng He led
seven maritime expeditions to the Western Seas and reached over 30
countries. He took with him Chinese tea, silk and porcelain and helped
local people fight pirates as he sailed along. He was truly a
messenger of love and friendship.

The argument that a big power is bound to seek hegemony does not
apply to China. Seeking hegemony goes against China’s cultural
tradition as well as the will of the Chinese people. China’s
development harms no one and threatens no one. We shall be a
peace-loving country, a country that is eager to learn from and
cooperate with others. We are committed to building a harmonious
world.

Different countries and nations need to respect, tolerate and
learn from each other’s culture. Today, 300 million Chinese are
learning English and over one million of our young people are studying
abroad. The cultures and arts of various parts of the world are
featured daily on China’s television, radio and print media.. Had we
not learned from others through exchanges and enriched ourselves by
drawing on others’ experience, we would not have enjoyed today’s
prosperity and progress.

In the 21st century, economic globalization and the information
network have linked us all together. Different cultures live together
and influence each other. No culture can flourish in isolation. How
much a country or a nation contributes to the culture of humanity is
increasingly determined by her ability to absorb foreign cultures and
renew herself. That is why China will remain open and receptive, value
her own traditions while drawing on others’ successful experience, and
achieve economic prosperity and social progress in a civilized and
harmonious way.

I stress the importance of seeing China in the light of her
development, because the world is changing and China is changing.
China is no longer the closed and backward society it was 100 years
ago, or the poor and ossified society 30 years ago. Thanks to reform
and opening-up, China has taken on a new look. What the Beijing
Olympic Games showcased is a colorful China, both ancient and modern.
I therefore encourage you to visit China more often and see more
places there. This way, you will better understand what the Chinese
people are thinking and doing, and what they are interested in. You
will get to know the true China, a country constantly developing and
changing. You will also better appreciate how China has been tackling
the ongoing global financial crisis.

This unprecedented financial crisis has inflicted a severe impact
on both China and Britain as well as other European countries. The
crisis has not yet hit the bottom, and it is hard to predict what
further damage it may cause. To work together and tide over the
difficulties has become our top priority.

I believe that closer cooperation is needed to meet the global
crisis, and the level of cooperation hinges upon the level of mutual
trust. The Chinese Government maintains that countries should: first
and foremost, run their own affairs well and refrain from shifting
troubles onto others; second, carry out cooperation with full
sincerity and avoid pursuing one’s own interests at the expense of
others; and third, address both the symptoms and the root cause of the
problem. A palliative approach will not work. We should not treat only
the head when the head aches, and the foot when the foot hurts. As I
reiterated at the World Economic Forum Annual Meeting in Davos,
necessary reform of the international monetary and financial systems
should be carried out to establish a new international financial order
that is fair, equitable, inclusive and well-managed. We should create
an institutional environment conducive to global economic growth.

Let me talk briefly about how China has been responding to the crisis.

The fallout of the financial crisis on China’s real economy is
becoming more evident. Since the third quarter of last year, our
exports have declined sharply, economic growth has slowed down, and
the pressure on employment has been rising. In the face of the grim
situation, we have acted decisively. We have made timely adjustment to
the direction of our macroeconomic policy, promptly introduced ten
measures to expand domestic demand, and formulated a series of related
policies. Together, they make up a systematic and comprehensive
package plan aimed at promoting steady and relatively fast economic
growth. Its main contents are:

First, substantially increase government spending to boost
domestic demand. The Chinese Government has announced a two-year
investment program that will generate, through fiscal spending, a
total investment of RMB 4 trillion nationwide, equivalent to 16% of
China’s GDP in 2007. The money will mainly go into
government-subsidized housing, projects related to the well-being of
rural residents, the construction of railway and other infrastructural
projects, social development programs, environmental protection and
post-earthquake recovery and reconstruction. The Chinese Government
has introduced a massive tax-cut program, which will reduce the tax
burdens on businesses and individuals by about RMB 500 billion each
year. We have also cut interest rates by a large margin, increased
liquidity in the banking system and adopted a range of financial
measures.

Second, implement a large-scale industrial restructuring and
rejuvenation program. We are pushing forward industrial restructuring
and upgrading across the board and formulating plans for the
restructuring and revitalization of ten key industries, including
automobiles and iron and steel. We will take economic and
technological measures to boost energy conservation and reduce
emissions, and promote merger and reorganization of enterprises to
raise the level of industry concentration and the efficiency of
resource allocation. We encourage and support the extensive
application of new technologies, techniques, equipment and materials
and the development of marketable products by enterprises.

Third, make energetic efforts for progress and innovation in
science and technology. Science and technology are of fundamental
importance in overcoming the financial crisis. A major crisis is
usually followed by a revolution in science and technology, and no
economic recovery is possible without technological innovation. We are
stepping up the implementation of the National Program for Medium- and
Long-Term Scientific and Technological Development, with special
emphasis on 16 major projects including core electronic devices,
development and use of nuclear energy and advanced numerically
controlled machine tools. We will strive to make breakthroughs in a
host of core technologies and key generic technologies to support
sustainable economic growth at a higher level. We will promote the
development of high-tech industrial clusters and cultivate new
economic growth areas. All in all, we will rely on major breakthroughs
in science and technology to foster new social demand and bring about
a new round of economic boom.

Fourth, significantly raise the level of social security. We will
continue to increase basic pension for enterprise retirees and upgrade
the standard of unemployment insurance and workers’ compensation. We
will raise the level of basic cost of living allowances in both urban
and rural areas and welfare allowances for those rural residents
without family support. We are advancing the reform of the medical and
health system and working to put in place a nationwide basic medical
and health system covering both urban and rural areas within three
years and achieve the goal of everyone having access to basic medical
and health service. We give priority to education and are now working
on the Guidelines of the National Program for Medium- and Long-Term
Educational Reform and Development. We are following a more active
employment policy with special emphasis on helping college graduates
and migrant workers find jobs. We are endeavoring to create more jobs
and lessen the impact of the financial crisis on employment. The
aforementioned measures will help us boost domestic demand, readjust
and reinvigorate industries, enhance the support of science and
technology and strengthen social security all at the same time. They
will stimulate consumption through increased investment, drive
economic growth while improving people’s livelihood and creating more
jobs, and see us through current difficulties while also improving the
long-term prospect of the Chinese economy.. They will not only benefit
China’s development, but also bring enormous business opportunities to
other countries, Britain included.

This once-in-a-century financial crisis is truly
thought-provoking. It reminds us of the need to have serious
reflections on the existing economic systems and theories.

For many years in the past, China practiced a highly centralized
planned economy and regarded planning as being absolute. This hampered
the development of productivity. The ongoing financial crisis has made
it clear to us, however, that the market is not a cure-all, either. A
totally laissez-faire approach will inevitably lead to economic
disorder and unfair social distribution, and will eventually take its
toll. A credible market-oriented reform should never set the market
against government macro-regulation. The invisible hand of the market
and the visible hand of government and social supervision should both
act, and act vigorously. Only in this way can resources be distributed
according to market rules and distributed in a reasonable,
coordinated, balanced and sustainable manner.

The international financial crisis once again shows how dangerous
a market economy without regulation can be. Since the 1990s, some
profit-driven financial institutions in economies lacking effective
regulation have raised massive capital with a leverage of dozens of
times. While they reaped huge profits, the world was exposed to
enormous risks. This fully demonstrates that a totally unregulated
market economy cannot work. We must strike a balance between financial
innovation and regulation, between the financial sector and real
economy, and between savings and consumption.

To effectively meet the crisis, we must fully recognize the role
of morality. Nothing is greater than morality. It shines even more
brightly than the sun. True economic theories will never come into
conflict with the highest moral and ethical standards. Instead, they
should stand for justice and integrity, and contribute in an equal way
to the well-being of all people, including the most vulnerable ones.
Adam Smith, known as the father of modern economics, held the view in
The Theory of Moral Sentiments that if the fruits of a society’s
economic development cannot be shared by all, it is morally unsound
and risky, as it is bound to jeopardize social stability. The loss of
morality is an underlying cause for the current crisis. Some people
have sacrificed principle and sought profits at the expense of public
interests. They have crossed the moral baseline. We should call on all
enterprises to take up their social responsibilities. Within the body
of every businessman should flow the blood of morality.

Ladies and Gentlemen,

Britain is the last leg of my European trip. I have gained a
deeper understanding of Europe through this visit. China-EU
cooperation is now standing at a new historical starting point and I
am all the more confident about the China-EU comprehensive strategic
partnership. There are no outstanding issues left over from history or
conflict of fundamental interests between the two sides. What we have
is a solid foundation and a bright future for cooperation. As the
first industrialized country, Britain has accumulated rich experience
in economic development and environmental protection. We hope to learn
from your experience and strengthen exchanges and cooperation with
you.

The future belongs to the younger generation. It is incumbent upon
you to build an even more splendid future of China-Britain relations.
Here and now, I cannot but mention Dr. Joseph Needham, a Cambridge
alumnus who made important contribution to cultural exchanges between
China and Britain. With his monumental masterpiece, Science and
Civilization in China, he built a bridge between the two great
civilizations of East and West. To honor tradition and innovation is
the outstanding character of Cambridge. I hope more of you will turn
your eyes to China, see my country in the light of her development,
and act as ambassadors of China-Britain friendship. I believe that as
long as you, the young people of China and Britain learn from each
other and strive for progress hand in hand, you will add a brilliant
new chapter to the annals of our relations.

Thank you!