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Chinese PremierLi Keqiang delivers a keynote speech at the opening of the Boao Forum for Asia(BFA) Annual Conference 2014 in Boao, south China's Hainan Province, April 10,2014.


Thefollowing is the translated version of the full text of his speech:


DearGuests, Ladies and Gentlemen, Dear Friends,


Inthe lovely spring, I am delighted to meet with friends from 52 countries andregions at the Boao Forum for Asia Annual Conference 2014 in the beautifulisland of Hainan. On behalf of the Chinese government, I wish to extend warmcongratulations on the opening of the annual conference and a hearty welcome toall forum participants.


TheBoao Forum for Asia has entered its 12th year, and it has become an importantplatform with an Asian focus and a global vision. "Boao", the site ofthe Forum, means "enchanting water and abundant fish" in Chinese, andI think it is a symbol of the Forum's fruitful achievements. Attending thisyear's annual conference are many heads of government from Asia and Africa, anda great number of business leaders, and think tank and media representatives.Friends, both old and new, are meeting here to discuss ways to boostdevelopment of both Asia and the world. Exchange of views will create newvision, and more interactions bring friends closer. I hope that you will befully engaged in forum discussions, and I look forward to benefiting from yourinsights.


Ourworld today is undergoing profound changes. The international architecturefaces new adjustment. Uncertainties and destabilizing factors affecting theglobal and regional environment are increasing. Hotspot issues emerge from timeto time. The world is moving towards multi-polarity amidst twists and turns.The global economy is in profound adjustment. Developed economies have seen newchanges, while emerging economies have encountered new challenges, and manycountries are on different economic trajectories. The global recovery has beena slow and difficult process and growth remains lackluster. To achieve strong,sustainable and balanced growth is still a daunting challenge facing all of us.


Asiais at a crucial stage of development. Asia is one of the most dynamic regionsin the world. It boasts one third of the global GDP, over 4 billion people andample supply of labor force. It enjoys distinct advantages as a late comer andhas tremendous untapped development potential. That said, most Asian countriesare developing nations, with low per capita GDP and uneven regionaldevelopment. Over 700 million people in Asia still live below the internationalpoverty line. Asia is faced with the huge challenge of growing the economy andimproving people's livelihood.


[en]AndAsian countries have to address both old problems and new ones. Ultimately, thekey to solving Asia's problems lies in development. It is development that willchange the world and shape the future. Development therefore remains the toppriority of Asian countries.


Tosustain its development momentum under the new conditions, Asia needs to find adynamic source of development to re-energize itself. The theme of the annualconference: "Asia's New Future: Identifying New Growth Drivers"cannot be more relevant and is crucial to Asia and the world.


Here,I wish to share with you my views as follows:


First,we should stick to the overarching goal of common development and build anAsian community of shared interests. In the age of economic globalization, noAsian countries can achieve development in isolation from each other, stillless can they pursue development as a "zero-sum game". Rather, withour interests closely entwined, we the Asian countries need to seek mutuallybeneficial cooperation where "one plus one can make more than two"and even produces a multiplying effect in which "two plus two makes morethan four".


Theimpact of the international financial crisis still affects us. Macro-policyadjustments made by developed countries have added uncertainty to theenvironment for development. Some Asian countries have experienced economicslowdown, rising inflation, and even capital flight and currency depreciation.Pessimistic views about the prospects of emerging economies have resurfaced.


Facedwith these new developments and new problems, we countries in Asia shouldcontinue to act in the spirit of solidarity in face of difficulties, turn ourstrong economic complementarity into mutual support for each other'sdevelopment, expand convergence of interests and achieve mutually beneficialcoexistence and win-win development.


Inthe past decade and more, intra-regional trade in Asia has expanded from US$1trillion to US$3 trillion, and its share of total trade of all Asian countriesincreased from 30% to 50%. Yet this is still far less than that in the EU.Regional economic integration meets the interests of all Asian countries. Weneed to work in unison to promote trade liberalization and investmentfacilitation, and upgrade regional and sub-regional cooperation.


Thenegotiation on the Regional Comprehensive Economic Partnership (RCEP) is thelargest trade agreement negotiation with the most extensive participation inEast Asia, and the RCEP is integration of existing mature free trade areas.Being highly inclusive and based on Asia's industrial structure, economic modeland social tradition, the RCEP is a phased-in arrangement that accommodatesmember countries at different levels of development, and it does not excludeother regional trading arrangements.


Chinawill work with all other parties to accelerate the negotiating process. At thesame time, the launching of a feasibility study on a Free Trade Area of theAsia-Pacific (FTAAP) may be considered to maximize the benefits of trade andinvestment in the Asia-Pacific.


Chinatakes an open position towards the Trans-Pacific Partnership (TPP). As long asthe TPP is conducive to the development of global trade and the fostering of anequitable and open trading environment, China is happy to see its conclusion.We are committed to upholding the central role of the WTO multilateral tradingsystem in global trade development. Both the RCEP and the TPP should becomeimportant supplements to the multilateral trading system, and these twomechanisms should go hand in hand and reinforce each other. We hope thatagreement can be reached on the RCEP by 2015.


Asa Chinese saying goes, "When everybody puts firewood in the fire, theflame rises high." As long as the Asian countries make concerted efforts,we can ensure that Asia will continue to serve as an important engine drivingthe global economy.


[en]Second,we should foster a general environment for integrated development and form anAsian community of common destiny. Economic integration is central to achievingcommon development in Asia. Asia's beautiful future hinges upon not only thedevelopment of each and every country but, more importantly, the commonprogress of the whole region.


Asa Chinese adage aptly puts it, "A single thread cannot be spun into acord. And a single tree cannot create a forest." We the Asian countriesneed to deepen result-oriented cooperation in all fields, pursue integrationthrough opening-up and development through integration, strengthen economicties, seize the opportunity of innovation-driven development, and thus hold thedestiny of development in our own hands.


Infrastructureconnectivity is a basic condition for integrated development. Countries in theregion should join hands and speed up infrastructure construction includingrail, road, air and water transportation. China is ready to work with countriesinvolved to draw up plans for building the Bangladesh-China-India-Myanmar(BCIM) Economic Corridor and the China-Pakistan Economic Corridor, and upgradeChina-ASEAN FTA. China will continue to promote the important projects of theSilk Road Economic Belt and the 21st Century Maritime Silk Road this year.


Chinais ready to intensify consultations with relevant parties in and outside Asiaon the preparations for the Asian Infrastructure Investment Bank and hopes thatthe bank can be officially launched at an early date. Industrialcomplementarity is a key aspect of integrated development. We the Asiancountries should take advantage of our geographical proximity to deepencooperation across the upstream, mid-stream and downstream industrial chains,and build an industrial network and economic system that draw on our respectivecomparative strengths.


Thedestiny of the Asian economy hinges on reform, innovation and structuraladjustment. Asian countries need to ride the global trend of new technologyrevolution, enhance exchanges, and draw on each other's experience to advancescientific and technological progress and personnel training, especially youngpeople, boost the "new economy" featuring green development, energy,environmental protection and the internet so as to seize an advantageousposition in future development and raise industrial and economiccompetitiveness.


Thiswill not only increase the internal impetus for achieving sustained developmentin our region, but also create new opportunities for global economic recovery.


Third,we should maintain the general environment of peaceful development and build anAsian community of shared responsibilities. Regional turbulence courts disasterwhile stability in the neighborhood brings prosperity. Asia owes its progressto a peaceful and stable regional environment, and peace and stability are thefundamental safeguards for Asia's development.


Sixtyyears ago, China, India and Myanmar jointly initiated the Five Principles ofPeaceful Coexistence, which have become basic norms governing internationalrelations. These principles embody Oriental wisdom and represent a majorcontribution to human civilization, and we should pass on the vision ofpeaceful coexistence from generation to generation.


Aclose neighbor is better than a kinsman afar, and close neighbors can becomebest friends. To achieve peace and stability in Asia, we the Asian countriesshould build consensus, make active efforts and jointly fulfill our dueresponsibilities. We should promote security dialogue and consultation,strengthen cooperation on non-traditional security issues, including disastermanagement, maritime search and rescue, counter-terrorism and combatingtransnational crimes, and actively explore the establishment of a regionalsecurity cooperation framework in Asia.


HereI wish to emphasize that China is committed to peaceful development. We pursuea neighborhood policy of building amity and friendship, and we are firm in ourresolve to uphold China's territorial sovereignty. We also follow a clear-cutpolicy of seeking peaceful solutions to disputes. We will give full support toinitiatives that help strengthen maritime cooperation. We will not accept actsthat undermine stability in the South China Sea.


WeChinese believe in repaying kindness with kindness and meeting wrongdoing withjustice. We value friendship and never treat friends unfairly, and we alsostand by principles and firmly uphold our fundamental position.


Apeaceful and stable South China Sea is in the interest of all littoralcountries, including China. China is ready to steadily advance consultation ona code of conduct in the South China Sea within the framework of theDeclaration on the Conduct of Parties in the South China Sea, and work withother countries to ensure peace, stability and freedom of navigation in theSouth China Sea. China loves peace and cherishes development. It is ready towork with other countries in the region to build a peaceful, prosperous andopen Asia and maintain peace, stability and tranquility in our neighborhood byenhancing political mutual trust.


Ladiesand Gentlemen,


Asia'sdevelopment is important to the future of the world, and China's development isclosely bound up with Asia.


Tokeep China's economy running within a proper range is both a basic target ofChina's current macro-control and its medium-to-long-term policy goal. We haveset this year's target of economic growth at about 7.5%. The word"about" indicates that there is a range for the GDP growth. As longas there is fairly sufficient employment and no major fluctuations, the actualGDP growth will be considered to be within the proper range, be it slightlyhigher or lower than the 7.5% target.


Statisticsshow that urban employment continued to increase, individual income, corporateprofits and fiscal revenue registered steady growth, consumer prices remainedstable, growth of electricity consumption started to rise and there werepositive dynamics in structural adjustment. In short, the Chinese economy hasgot off to a stable and good start.


Onthe other hand, the upturn of the Chinese economy is not yet on a solid footing,downward pressure still exists, and difficulties in some fields must not beunderestimated. These problems show the impact exerted on China by the complexinternational environment; they also reflect the prominent challenges andeconomic slowdown that China faces.


Preparednessensures success. Faced with this complex situation, we need to calmly assessthe current developments, stay focused, and take initiatives as called for. Inexercising macro-control, we will endeavor to strike a balance betweenaggregate supply and demand, focus on improving the economic structure, ensureproper policy intensity of macro-control in the light of changing situation andtake targeted and differentiated measures as appropriate.


Lastyear, we pursued creative thinking and methods in exercising macro-control andgained new experience in this regard. We will not resort to short-term massivestimulus policies just because of temporary economic fluctuations and we willpay more attention to sound development in the medium to long run and strivefor sustained and sound economic development. With all the principlesestablished and policy options at our disposal, we can handle all possiblerisks and challenges. China's development has strong resilience. We have thecapabilities and confidence to keep the economy functioning within the properrange.


Thereare conditions in place for the Chinese economy to achieve sustained soundgrowth. China has a big economy and large foreign exchange reserves. There issteady and coordinated progress in advancing the new type of industrialization,IT application, urbanization and agricultural modernization. And the Chinesemarket has broad space. There is much we can do to boost China's development.In particular, there is a large urban-rural gap in development. Population inthe central, western and northeastern regions accounts for over 60% of thenational total. And per capita GDP has just exceeded US$5,000. To narrow thegap between urban and rural areas and among different regions will unleash hugepotential of growth. We have introduced a series of policies to advance reform,adjust structure and benefit the people, and more such measures are underconsideration. All these will help ensure such steady growth.


Steadygrowth is possible only with a solid foundation just as long distance can becovered only by a vehicle with a high-powered engine. The Chinese economy hasthe basis for steady growth. It not only enjoys good conditions for maintainingmedium to high speed growth in the time to come, but also inexhaustible impetusfor sustained development. Under the theme of identifying new growth drivers,we will make multi-pronged efforts in the following three areas:


First,we will create impetus by deepening reform. The market has huge vitality andthe people have indefinite creativity. We will work harder to streamlineadministration and delegate more power to lower level governments. We willintroduce a system of listing government powers, consider the adoption of amanagement model based on a negative list approach, accumulate usefulexperience through the development of the China (Shanghai) Pilot Free TradeZone and spread it to other areas. This will enable us to expand market access,foster a better business environment, encourage fair competition, develop alaw-based economy, unleash greater dividends of reform, spark socialcreativity, and stabilize market expectations.


Opening-upis also a kind of reform and can boost reform. We will carry out a new round ofopening-up at a high level. An important part of this endeavor is to furtheropen up the services sector, including the capital market. For example, we willactively create conditions to establish a Shanghai-Hong Kong stock exchangesconnectivity mechanism, and further promote two-way opening-up and healthydevelopment of the capital markets on the mainland and Hong Kong. We willcontinue to raise the level and quality of opening-up through deeperintegration with the international market.


Second,we will create impetus by adjusting economic structure. We will narrowurban-rural and regional development gaps and address the unreasonableindustrial structure to push forward structural adjustment through structuralreform. We will speed up efforts to improve the services sector, which is ourweak link, extend the pilot VAT reform to postal, telecommunications and otherservices sectors, use tax tools to develop producer and consumer services, anduse more private capital to increase the supply of old-age support, health,tourism, cultural, sports and other services.


Wewill implement a new type of people-centered urbanization, address thebifurcation between urban and rural areas and within cities, and grant urbanresidency in an orderly manner to rural people who have moved to cities. Thegovernment will increase support and use market tools to rebuild more rundownareas this year.


Wewill expand development from the coastal areas to the inland regions in aphased way and nurture new economic support belts along the Yangtze Riverwaterway and important land transportation trunks. We will push forward theconstruction of rail, road and other transport infrastructure in central andwestern regions to foster favorable conditions for industrial relocation.


Wewill also promote the development of green industries, new energy, andenergy-conserving and environment friendly technologies and products to fosternew growth areas, and resolutely eliminate backward production facilities inthis process to ease the resources and environmental constraints. We willincrease the size of the national guidance fund for venture capital in emergingindustries, leverage the role of innovation in spurring development, moveindustries up the value chain, and raise the productivity of factors ofproduction.


Third,we will create impetus by improving people's livelihood. The purpose ofdevelopment is to improve people's lives. The 1.3 billion Chinese represent thelargest consumer market and source of demand in the world. And as people'slives improve, the domestic demand will play a greater role in driving economicgrowth. We need to increase people's income as the economy grows. Andemployment is the source of income and crucial for people's lives. We will implementa more energetic policy for employment and entrepreneurship and give greaterfiscal, tax and financial support and services to university graduates andunemployed people when they seek jobs or start their own businesses.


Wehave substantially raised the limit of annual taxable income of small and microcompanies eligible for halved corporate income tax from 60,000 yuan to 100,000yuan. We will also introduce more tax breaks to encourage individually-ownedbusinesses and enterprises to hire more. We want to steadily raise people'sincomes by creating more jobs and start-ups. We will improve the social safetynet and public services so that people will have no worries. We will take acomprehensive set of policies to boost consumer spending, raise people'sspending power, increase consumption of goods and services and reducedistribution costs so that consumption can provide greater support for economicdevelopment.


Havingregistered rapid growth over the past three decades and more, the Chineseeconomy has entered a new stage of improving quality and performance. We needto overcome stumbling blocks on the way forward and make steady progresstowards achieving our long-term goals. We will pool the courage, vision andstrength of over one billion people to write a new chapter in the "Chinastory" and endeavor to realize the great Chinese dream of nationalrenewal.


Ladiesand Gentlemen,


Welive in an era of interdependence. Never has the world been so closelyconnected as it is today; and never has Asia needed win-win cooperation so muchas it does today. Success can only be achieved when the wisdom of all ispooled. We the Asian countries should work closely to uphold regional peace andstability, promote development in our region, build a common homeland for usand contribute more to world peace, development and cooperation. China willforge ahead and share weal and woe with other Asian countries in a joint effortto open up new vistas for Asia's development.


Inconclusion, I wish the forum full success and all the guests coming from afarand friends attending the conference a fruitful and enjoyable stay here andgood health. Thank you!

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