Speech before the Los Angeles World Affairs Council on August 28, 2001:

 

His Excellency Yang Jiechi
Ambassador of the People’s Republic of China to the United States

Thank you, Mr. Williamson, for your very warm introduction.  Mrs. Ahmanson, Mr. Mack, Mr. Williamson, ladies and gentlemen.  It is a great honor for me to be invited by the L.A. World Affairs Council, the Asia Society, and the L.A.-Guangzhou Sister City Association to this podium in front of this distinguished audience.  This is not the first time that I come to L.A.  I’ve been here many times, but today I feel exceedingly glad to have a chance to meet you as the new Chinese Ambassador.  This is a great city, and in the last one and one-half days I have already intermingled with quite a few people in this great city and in the southern area of California. 

Today I propose to talk about Sino-American relationships and to share my thoughts with you to see how can we further promote this very important tie between our two nations.  I would like to cite three events, they are current events, and they might also be called a process, an exciting process, starting from this year.  First is Beijing’s successful bid for the Olympics.  Now, the Chinese people really love the idea of hosting the Olympics, and about 400,000 people poured out into Tiananmen Square to cheer for the success and, while they congratulate themselves, they’re also very appreciative of what others have done for us, friends around the world, particularly those in the United States.  We want to make it one of the greatest sports events in the world, and I think we need to pick the brains of people here in L.A. 

I still remember back in 1984 when the Chinese sports team made their debut here in L.A., and I think they had very good luck here: they got 15 gold medals.  What’s more important, they made lots of friendships here.  I think you know how to run a successful Olympics, and I hope that the two sides will have more interaction to exchange ideas.  I think the Olympics will offer lots of opportunities for American businessmen, for American thinkers, and this process will also be a process of creating more friendship and understanding between Chinese and American people, hence consolidating the relationship between our two countries. 

The second event is China’s entry into WTO [World Trade Organization] and I’m glad to say this entry is within sight.  In September, the working party on China’s entry will hold its next meeting in Geneva and they will finalize the text of the protocol to China’s entry as well as the working party’s report and then these documents will be submitted to the Doha ministerial meeting.  I’m sure that, with your blessing, China will enter into WTO pretty soon.  China’s entry into the WTO at an early date will be in everybody’s interest, particularly those in the United States. 

I believe that the agreement that we have reached with each other is a good one.  The United States is strong in many different areas, and U.S. exports to China have increased by about 17.9 percent during the first half of this year.  It’s way above the average increase of China’s imports from the world.  China’s exports to the United States has also increased, but by a lesser amount, about 6 percent.  We do have a trade surplus with the United States, but I’m very glad that the United States is actually exporting more to China and particularly from the Greater Los Angeles area and from the State of California.  Actually, China is the fastest-growing market for the State of California. 

What are the priorities for China, in nation-building?  Economically, it is the infrastructure, its energy, telecommunications, new materials, and also the opening up of the financial sector of China, the services trade.  I think the United States, and particularly the Greater Los Angeles area, is strong in all those areas.  Recently, we signed contracts with quite a few companies for the introduction of the CDMA telecommunications systems to China to the amount of about 1.4 billion U.S. dollars or so.  It’s a lot of money, and this is only the first phase.  I would like to tell you that now we already exceed the United States in the number of subscribers to cell phones.  It shows that the consumer market in China is a very big one -- and remember we have 1.25 billion people. So there will be a lot more people who tend to use cell phones in China.

How about tourism in China?  Many Chinese would like to go abroad these days.  They go to New Zealand, Australia, and they even go to the Netherlands in Europe.  Before I took this job, I went to the Netherlands.  To my great surprise, many tour guides there spoke Chinese to me.  It means there are a lot of Chinese touring Europe, and I hope that soon they will come here. 

Because of this rapid development of business interaction and tourism, China needs a bigger air fleet.  We will buy more Boeing and other airplanes.  How about entertainment?  People’s living standards have gone up, and they would like to see more movies and they would like to go amusement parks, and I think Los Angeles has a lot to offer in these areas as well. 

So I think China’s early entry into the WTO is in everybody’s interest.  Of course, we want to see great competitive strength from Chinese companies as well and I think they’re doing just that.  I really believe in competition and the opening up of China is really about the introduction of competition to a certain extent, in a certain way, and I believe that China’s entry into WTO will make China a more dynamic country and make the economic and trade relations between our two countries more solid. 

The third event is the holding of APEC in Shanghai in October of this year.  We believe in the dynamism of the Asia-Pacific region.  In this region, there are both developed and developing countries.  We believe that cooperation in meeting the new challenges will bring a more meaningful tomorrow for the Asia-Pacific region.  So this APEC is a lot about how to sustain economic development in the new economy era.  People will talk about e-mail and e-commerce and other things, and people will think not only about trade, but about how to have more technical cooperation with each other, because we are really in the same boat and one good thing leads to another.  We need to help each other in the face of the challenges in the current economic picture, which is not all that good at the moment.  China will be the host for the first time, and we are very glad and honored to be the host of APEC in the first year of the new century.  But we believe that the United States, and the larger Los Angeles area, can have a lot to offer.  I hope that many businessmen from here will go to the APEC meetings.  There are quite a few economic meetings on the sideline as well and we hope to receive fresh ideas from you about how to make this meeting most productive and rewarding.

Ladies and gentlemen, the Sino-American relationship, as you can see, has many dimensions.  There is the bilateral dimension as well as the multilateral one.  In the first half of this year the Sino-American relationship did go through some difficulties, but fortunately, now things are looking up.  We see a positive trend now. Secretary Colin Powell’s visit to China was a success.  It enhanced mutual understanding and cooperation, and it went a long way to pave the ground for President Bush’s visit to China.  Our Foreign Minister will come to the United States for a visit soon.  What is really catching everybody’s attention is the summit between President Jiang and President Bush in October of this year and the subsequent visit to Beijing by President Bush.  This is a very important event.  I believe and I’m sure that the summit and the visit will contribute a lot to even more dynamic and positive developments of the Sino-American relationship, which is really in the interest of all.

Ladies and gentlemen, China and the United States are both big countries.  We’re at different developmental levels.  We have different cultural backgrounds and different histories, and it’s natural that there will be some differences.  But I believe that it’s important to concentrate on the common interests between our two countries. There are some issues which really deserve people’s attention, and I would like to talk about two issues today.  One is the Taiwan issue. 

The Taiwan issue is the most critical and sensitive issue in the Sino-American relationship.  There are the three joint communiqués guiding Sino-American relationships.  The United States, including this administration, has publicly announced that they would adhere to the one-China policy and to the three joint communiqués.  We believe that strict adherence to the one-China policy and the three joint communiqués is most important for a stable and healthy development of the Sino-American relationship.  We have emphasized this point to the American side.  Taiwan is part of China.  The Chinese people on both sides of the Taiwan Strait, and Chinese all over the world, they want to see the reunification of China.  People are working towards that end.  Peaceful reunification, one country two systems, is the best formula for bringing about the peaceful reunification of China.  We urge the leaders in Taiwan to recognize the one-China principle very soon because this will really lay the base for the resumption of dialogue between the two sides.  The peaceful reunification of China will be in the interests of all.  It will be in the interests of the United States.  I do hope that there will be more people of vision in this country, especially those in power, who will see things that way.

The second issue is how to look at China as a country.  There are many visitors who go to China these days from the United States.  Somebody told me about one million people go to China each year.  I and my colleagues have come across quite a few of them, and they invariably say that China is quite different from what they thought when they first went there.  It shows that, to some degree, there is still a lack of understanding of China.  Of course, on our part we also need to learn more about the United States.  You are a superpower, so people not only in China but in other parts of the world, they, too, pay lots of attention to what’s going on in the United States.  As regards China, I do hope that more people will come to visit China, to see China as it is, to experience the sights and sounds and feel of China. 

As I look at my own country there are five points which I would like to talk briefly about from this podium.  First is that you have a dynamic system going on in China.  The Chinese economy is going forward, in spite of the slow-down of the world economy.  During the first half of this year, the economic growth rate was about 7.9 percent.  We think that for the whole year it will be anywhere between 7 to 8 percent.  The IMF has just come out with a report saying that it will be 7.5 percent.  They do have confidence in the Chinese economy.  They think that we are on the right track and that the economy will continue to grow. 

Our target is to get our GDP doubled in the next decade or so.  It means 7 percent growth rate straight for the next decade.  I think things are going our way, although there are still some challenges lying ahead, but we want to improve our market economy.  We want to introduce more foreign investment into China.  We want to pick the brains of smart people all around the world.  I think you will see that the Chinese economy will remain dynamic because we, as a large country, we just have more means to maintain the growth of the country.  The economy in terms of growth is basically composed of three things: investment, consumption and foreign trade.  We just don’t put all our eggs in one basket. Now we pursue a pro-active fiscal policy. We have this developed strategy.  We’re trying to lay a natural gas pipeline from the northwestern part of China all the way to the eastern coast.  Besides, as Mr. Williamson has just said, we’ve tried our luck in the offshore areas for natural gas as well.  We have the Yangtze Gorge dam project going on, and we want to do a lot more. 

Second is the people’s attitude toward society.  With this economic growth rate of about 9 percent for twenty years, the Chinese people’s living standards have really gone up.  If few people believe that the average people vote from the pocketbook, you have to believe that most people in China support the government’s policy because they live a much better life then.  There is social progress in China as well.  So when people talk about the attitude of China sometimes those people with prejudice say, “Well, it’s the government’s policy.”  They try to conveniently forget that it’s the feeling, it’s the will, of the Chinese people.

My third point is about the leadership in China.  It’s an effective and strong leadership that has led China through a lot in the last one or two decades.  I think China is in good hands, and China will continue to be in good hands.

My fourth point is about the attitude of China’s neighbors.  China is improving its relationship with its neighbors and China is on good terms with its neighbors.  As a mater of fact, when things were not going so well between the United States and China in the first half of the year, it was our neighbors, their prime ministers, their foreign ministers, who came to Washington and tried to urge people here who have the power, the clout, to fix the whole thing so that they will not suffer, because they want to see good relationships between China and the United States.  They want to be friends with both sides. 

My fifth point is about China’s attitude towards the relationship with the United States. China wants to have a good relationship with the United States.  We think that it should be a constructive, a cooperative, relationship.  Never mind the differences.  If you have a constructive attitude you know how to go about the differences.  You seek common ground and you have to shelve some of the differences.  Each side will respectfully table its point of view.  You have to assume that the people in China know how to go about their own business.  You have to assume that China wants to have a good relationship with the United States because it’s in our mutual interests.  China does not seek confrontation with the United States because it serves nobody’s interests.  We believe that the commonality of interests between our two sides outweigh our differences.  Look at Asia, look at the Pacific. We tried to work very hard, both sides tried very hard, to pull Asia out of the economic crisis in 1997-98.  Both sides tried to keep some regions in a stable condition, and we all worked against the nuclear proliferation.  So I believe that there is a lot that we can do together.

In light of the actual situation in China and our attitude towards the United States, I believe that Cold War mentality is not something called for.  A China threat does not exist.  As I look at this relationship, it’s a win-win situation.  It’s a grow-grow situation.  If you grow, we grow with you and vice versa.  This relationship needs effort from all sides, not only from the government, but from the people, from the various walks of people around the United States and in China. 

I feel sentimental about my own connection with Los Angeles.  The first time I came here was in 1977.  That was two years before the establishment of diplomatic relations between China and the United States, and I can see in this audience quite a few pioneers of the relationship.  They worked very hard for the establishment of diplomatic relations between the two countries.  It was not so easy in those days and our relationship has come a long way.  I remember the L.A. games, I remember the standing ovation of the audience, the spectators when the Chinese sports team entered the stadium.  I remember President Jiang’s trip to L.A. and Prime Minister Zhu Rongji’s trip to this city, people’s warmth, even tears, for these two very important visitors.  Only last night there was a gathering of 800 people to celebrate Beijing’s successful bid for the Olympics.  

I believe to tackle Sino-America relationship we kind of need the spirit of the Olympics.  We need to be good runners, to run faster, to push the relationship forward.  We need to be good high jumpers.  We should aim high.  We need to have team spirit, because only together can we pull this worthy relationship up.

Ladies and gentlemen, I’m very grateful for your time.  I know Labor Day has not come yet.  This is still the summer vacation, and some of you have sacrificed your time at the beach to come here to listen to me.  But we are all working for a very good cause.   I’m glad to be in this great city, and you will see me back quite a few times, because there’s a lot that we can do together for a brighter and more beautiful tomorrow for the Sino-American relationship.

  Thank you very much.