Shanghai, 19 October 2001

Mr. Chairman,

Ladies and Gentlemen,

It is a pleasure to meet you, friends from the Asia-Pacific  business community in this thriving city of Shanghai. And I  am delighted to have this opportunity to discuss with you the  future development of the Asia-Pacific region and the world  at large.

How should the world evolve in the new century? Where should  the world be heading for? What should the Asia-Pacific look  like in the future? These are the questions we should think  very hard and address with a vision and practical measures.

The ancient Chinese philosopher Confucius once said, "Peace  and harmony are the supreme virtues of heaven and earth". This  maxim may well reflect man's long-cherished aspiration for peace,  tranquillity, development and prosperity.

However, the world is not tranquil and is still plagued  by regional conflicts and flagrant terrorism. The September  11 terrorist attacks have disrupted world peace and stability,  and terrorism has become a global scourge.

The history of human civilization, mankind's successes and  failures, sufferings and glories, have left us a profound lesson.  The realities of today have given us a mandate¨C a mandate to  usher in a new era.

We must bear in mind the universal desire of the people  for peace, development and cooperation. We must seek to create  a new era when disputes are replaced by consultations, confrontation  by dialogue, when mutual respect prevails and different cultures  develop side by side in this diverse and colorful world, and  when people throughout the world live in peace and enjoy development  and prosperity, free from terrorist threats.

With the advent of the 21st century, economic globalization  is gathering pace. Science and technology are advancing rapidly  and have become an important driving force behind the world  economic growth.

But unfortunately, this process is accompanied by a widening  gap between the North and the South and an uneven development  among countries and regions.

It is therefore essential to have a correct assessment of  what positive impact economic globalization and scientific and  technological advancement have had and may continue to have  on the expansion of productive forces, creation of social wealth,  dissemination of knowledge and civilization and even world peace  and stability so that we can seize the historical opportunity  and bring about a leapfrog development.

It is equally essential, if not more, to address the negative  effects of economic globalization and the side effects of scientific  and technological advancement and work real hard for common  development and prosperity of all members of society. To this  end, the whole world should join hands to ensure that all nations  enjoy the benefits of scientific and technological progress,  economic globalization and the New Economy through full participation  and cooperation.

The Asia-Pacific region achieved great economic progress  in the last century, playing an important role in boosting regional  and global economic development. This is attributable to the  concerted endeavor, closer cooperation, pioneering work and  enterprising spirit of APEC members and all other economies  in the region.

In the new century, the Asia-Pacific economic development  is faced with both opportunities and challenges. The region-wide  and world economic slowdown and, particularly, the September  11 attacks have added to the difficulties and uncertainties  of our regional economy. Having said that, I wish to stress  that in the long run, the Asia-Pacific economic prospect is  broad and bright.

As long as we seize the opportunities brought by economic  globalization and scientific and technological revolution, stick  to open regionalism, enhance regional cooperation and adopt  strong macro-economic measures to speed up restructuring, we  will be able to overcome difficulties and open up new dimensions  for growth and prosperity in our region. We have full confidence  in that.

The theme of APEC 2001 is so designed as to reflect this  historical need.

If we are to promote the development of a multilateral trading  system and promote greater openness of our region, we must strengthen  trade and investment liberalization.

If we are to ensure that all APEC members benefit from economic  globalization and the New Economy, we must enhance capacity  building to open up opportunities for future development.

If we are to create a sound environment for regional economic  development, we must have dialogue on financial policies.

That is why "Achieving common prosperity through participation  and cooperation" has been made the theme of APEC 2001.

The APEC Business Advisory Council (ABAC), the most important  organization representing APEC business community, has since  its inception put forward a series of constructive ideas and  recommendations concerning the two main areas of APEC cooperation  -- Trade and investment liberalization and Ecotech.

Many of them have been endorsed by our leaders and have  been put into practice, becoming a catalyst of the APEC process.  ABAC has served as an easily accessible and interactive bridge  between business and government and set a fine example of cooperation  between government and the business community.

The ABAC Report 2001 to APEC Leaders, which is entitled  "Common Development through Market Opening, Capacity Building  and Full Participation", tallies well with the theme of APEC  2001. The Report contains many constructive ideas and suggestions  on trade and investment liberalization and facilitation, human  capacity building, financial cooperation, SME development and  Ecotech. I am sure that they will be carefully considered by  our leaders and implemented in real earnest, once adopted.

With your permission, I would like to make some personal  observations about what should be the priorities of ABAC in  the years to come.

Firstly, it is important that ABAC continues to support  SME development in the region. SMEs are a new force of regional  economic growth and technological innovation. You may wish to  offer some advice as to what should be done to help SMEs more  effectively with their technological innovation, financing and  corporate governance. You may also wish to take some practical  actions to help SMEs, which do need such help and assistance.

Secondly, it is imperative that ABAC helps to promote human  resources development and capacity building in the region. People  of talent are the prime assets that underpin the success of  all undertakings. Without these assets, there will no prosperity  of a nation or enterprise to speak of. Opportunities favor only  those countries and regions that have done a good job of human  resources development. In this connection, I sincerely hope  that ABAC will play a greater role in training and fostering  talented men and women who can stand up to the challenges of  the new century.

Ladies and Gentlemen,

Friends,

China cannot develop in isolation of the world, and the  world cannot achieve global prosperity without the development  of China. China is an important member of the Asia-Pacific and  international community. Over the past 20 years and more, China  has maintained a sustained, rapid and healthy economic development.  An all-directional opening-up pattern is basically up and running.

In the new century, we will continue to adhere to our independent  foreign policy of peace, which is aimed at promoting world peace  and stability, common growth and prosperity. We will continue  to develop friendly relations and cooperation with the rest  of the world on the basis of equality, reciprocity and mutual  benefit. And we will continue to pursue the policy of opening-up,  deepen the reform and devote ourselves to economic development.

China's economy will converge with that of the world faster  with more solid strides. China's WTO entry will open a new page  for our economy. As we enjoy our WTO rights, we will fulfill  our obligations and honor our commitments. We will accelerate  the opening of the infrastructure sector, such as energy, communications  and telecommunications and provide, step by step, more opportunities  for foreign businesses to invest in such areas as banking, insurance,  tourism, retail sales, foreign trade and legal consulting services.  We will improve our laws and regulations regarding foreign investment  and provide better services to overseas-funded ventures.

China's development and the process of reform and opening-up  augur well for trade and economic ties between China and the  rest of the world, particularly the Asia-Pacific. Tremendous  business opportunities in China are awaiting all entrepreneurs  who have the vision.

Ladies and Gentlemen,

Friends,

I do hope that all of you present here and all other people  who love peace and aspire development will work together to  build a lasting world peace and promote growth and prosperity  throughout the Asia-Pacific region.

To conclude, I wish to propose a toast to the bright future  of the Asia-Pacific region.

Thank you.