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NO.12 (June 15, 2005)
2005/06/15


--Speech by President Hu Jintao of the People's Republic of China at the Opening Ceremony of the 2005 Fortune Global Forum

--Communique on the Meeting of CPC General Secretary Hu Jintao and KMT Chairman Lien Chan

--Communique on the Meeting of CPC General Secretary Hu Jintao and PFP Chairman James Soong Chu-yu

--Mainland to Facilitate Entry-Exit of Taiwan Compatriots

--Third Round of Fortune

 

Speech by President Hu Jintao of the People's Republic of China

 at the Opening Ceremony of the 2005 Fortune Global Forum

Distinguished Mr. Ricllald D. Parsons, Honored Guests, Ladies and Gentlemen,

Good evening!

It is a great pleasure for me to join all of you here at the opening ceremony of the 2005 Fortune Global Forum on this pleasant evening. Let me begin by extending, on behalf of the Chinese Government and also in my own name, my warm welcome to all of you and my sincere congratulations to the sponsor of the forum, Time Warner Inc. of the United States.

The theme of the forum, "China and the New Asian Century, "gives full expression to the widespread interest in the prospects of development in China and Asia as a whole, as well as in the impact of their development on global economic growth. It also shows that with surging economic globalization, China and Asia are quickly becoming a new growth engine for the world while the global boom also generating more important opportunities for China and Asia. Continued mutually-beneficial economic cooperation and rising interdependence among the world's countries will usher in an even better future for a global economy in development.

Ladies and Gentlemen,

China is an ancient civilization with a history dating back over 5,000 years. The Chinese people have made a major contribution to human progress by creating the splendid Chinese civilization with hard work and ingenuity. The city of Beijing, with its long history of over 3,000 years, is testimony to that effort. It became the nation's capital over 800 years ago. A short distance from the Great Hall of the People, where we are right now, is the world-renowned Forbidden City. First built some 600 years ago, the former imperial palace is the largest and most complete existing ensemble of ancient royal architectures in the world, From Beijing's time-honored past and the majestic Forbidden City itself, people can learn vividly the originality, greatness and profound richness of the Chinese civilization and feel for themselves the vigor, resilience and pioneering spirit of the Chinese nation.

Beginning in the mid 19th century, China was reduced to dire misery as the country suffered one humiliating defeat after another and the people languished in poverty and starvation as a result of brutal foreign aggression and corrupt and incompetent feudal rulers. Refusing to submit to a fate of agony and woe. The Chinese people fought back persistently and finally built up a New China under the leadership of the Communist Party of China. Since 1949, when the New China was proclaimed, and particularly since the implementation of reform and opening-up program pioneered by Mr. Deng Xiaoping in 1978, China has undergone a profound transformation never seen in the country before. In a short span of 26 years from 1978 to 2OO4, China's GDP increased from $147.3 billion to $1.6494 trillion with an average annual growth rate of 9.4 percent. Its foreign trade rose from $20.6 billion to $1.1548 trillion, averaging an annual growth rate of over 16 percent, China's foreign exchange reserves increased from $167 million to $609.9 billion. The number of rural poor has dwindled from some 250 million to 26 million, The overall national strength of China has increased remarkably and the texture of life of its people improved steadily. While inheriting and carrying forward their proud past, the 1.3 billion Chinese people are writing a new chapter in history as they march with one heart and one mind on the road of building socialism with Chinese characteristics.

We in China have identified the goal for the first 20 years of this century. That is to firmly seize the important strategic opportunities to build a moderately prosperous society of a higher standard in an all-round way for the benefit of our big population. By 2020, we will quadruple China's GDP of 2000 to approximately $4 trillion with a per-capita level of some $3,000, and further develop the economy, improve democracy, advance science and education, enrich culture, foster greater social harmony and upgrade the texture of life of the people. We are deeply aware that China, for a considerably long period of time to come, will remain a developing country. The population figure of 1.3 billion alone will make the fulfillment of the above goal a formidable challenge, and we must be prepared for a long and uphill journey ahead.

To realize this goal, we must uphold the scientific approach in achieving economic and social development of the country. We must put the people first, making the fundamental interests of the broadest masses of people our point of departure and endeavoring to satisfy their growing material and cultural needs to pursue the comprehensive development of man. We must focus on economic development as our central task, making development our top priority and facilitating and all-round progress in economic, political and cultural aspects and in the building of a harmonious society. We must stick to the direction of reform for a socialist market economy, step up institutional innovation, deepen reforms aimed at galvanizing creative vitality of society and increase the inherent dynamics for economic and social development. We must adhere to our basic policy of opening to the outside world, building a more open market place and allowing the country to participate more broadly in international economic and technological cooperation and competition with still wider and higher dimensions. We must follow a new course of industrialization, endeavor to overhaul the economic structure, quickly transform the ways of economic growth by improving its quality and efficiency, vigorously develop the cyclical economy and build a resource-effective and environment-friendly society, thus blazing a trail of development characterized by higher productivity, comfortable life for the people and a sustainable eco-system. We believe, as long as we firmly follow the path of development that is consistent with China's national conditions, we will be able to realize our goal and play a greater and more constructive role in the promotion of world peace and common development.

Ladies and Gentlemen,

China and the rest of Asia and the world at large are closely related when it comes to development. A developing China will, as always, generate cooperation opportunities with win-win results for other countries in Asia and the world. By the end of 2004, China had attracted a total of $562.1 billion in foreign direct investment, approved the establishment in China of more than 500,000 foreign funded enterprises and created a huge import market of some $560 billion annually. At present, most countries and regions have had enterprises with investment in China, and over 400 firms out of the Fortune 500 have invested in China. The number of R&D centers set up by foreign investors in China exceeds 700. As China becomes more developed, its cooperation with other countries and their corporations of various types is bound to increase in scale. China will keep opening up its market, find new ways of using foreign capital, improve on legislations and regulations for encouraging and protecting foreign investors, revamp foreign economic management, step up protection of intellectual property rights, and work still harder to help foreign investors and create an even better environment for trade and economic cooperation between China and the rest of the world.

Ladies and Gentlemen,

All of you are important corporate leaders participating in and promoting international economic activities. Many of you and the companies you represent have been vigorously involved for years in pushing economic and technological cooperation with China and made significant contribution to China's sustained economic growth and technological upgrading in certain industries. Facts have proved that such cooperation serves our mutual interests. We look forward to continued expansion of your investment in China and your still closer economic and technological cooperation with Chinese enterprises, I believe that you will give greater scope to the advantages of your companies and your rich managerial expertise and play a critical role in facilitating international economic and technological cooperation and promoting economic development in regions and globally. Let us join hands and work together to contribute a greater share to world peace and common development.

May 1 conclude my remarks by wishing the 2005 Fortune Global Forum in Beijing complete success.

Thank you!

 

Communique on the Meeting of CPC General Secretary

Hu Jintao and KMT Chairman Lien Chan

(April 29, 2005)

At the invitation of Hu Jintao, General Secretary of the Central Committee of the Communist Party of China (CPC), Lien Chart, Chairman of the Chinese Kuomintang (KMT) Party, led a KMT delegation to visit the mainland from Apii126 to May 3. It heralded an important opportunity for the two parties to communicate. Based on the common understanding of "facing the reality and opening the future," Hu and Lien held a meeting in Beijing on April 29, exchanging views on promoting the improvement and development of cross strait relations and issues of communication between the two parties. This was the first meeting between the top leaders of the CPC and KMT in six decades, which has significant historic and realistic implications. Leading officials involved with the operational side of the two parties also held talks.

Based on the promises of the two parties to promote the peaceful and stable development of cross-strait relations, as well as the concerns of people's interests, General Secretary Hu and Chairman Lien decided to issue a joint press communique on the "Common Aspiration and Prospects for Cross Strait Peace and Development." The communique reads as follows:

The two sides across the Taiwan Strait have developed different social systems and adopted different ways of life on their respective paths over the past 56 years. More than a decade ago, we started consultation, dialogues and people to people exchanges across the Taiwan Strait on the basis of goodwill and "seeking common ground while reserving differences." These moves brought about hopes for peace and chances for cooperation in cross-strait relations. In recent years, however, the foundation for mutual trust across the strait was repeatedly sabotaged, while the situation for cross-strait relations kept worsening. Presently cross-strait relations are at a critical point of historical development. The two sides across file strait should step into a virtuous cycle of cooperation rather than slump into a vicious cycle of confrontation, join hands to seek opportunities for promoting peace, stability and development across the strait, trust and help each other, and recreate a peaceful, win-win situation. Only by doing so could we achieve a bright prospect for the Chinese nation.

The two parties have realized that:

Both the CPC and KMT adhere to the "1992 Consensus" and oppose "Taiwan independence," and it is their common stance to seek peace and stability across the Taiwan Strait, promote cross strait relations and safeguard the interests of the Chinese compatriots on both sides of the strait.

Promotion of exchanges and visits between people across the Taiwan Strait and concerted efforts to carry forward the Chinese culture will help end estrangement, enhance mutual trust and build up consensus.

Peace and development are the general trend of the gist century; peace and development across the Taiwan Strait are in conformity with the common interests of Chinese compatriots on both sides of the strait, as well as the interests of the Asia-Pacific region and the world at large.

On the basis of their common endorsement of the above principles, the two parties have agreed to work together to promote the following work:

First, the two parties have agreed to promote the earlier restoration of cross-strait talks and to seek happiness and benefits for people on both sides of the strait. They will promote the reopening of equal consultation on the basis of the "1992 Consensus" to discuss issues of common and respective concerns and boost the positive and healthy development of cross-strait relations.

Second, the two parties will make joint efforts to promote the formal end of the state of hostility across the Taiwan Strait and will take steps toward reaching a peace accord, building a framework for peaceful and steady development of cross-strait relations, including a mechanism of military mutual trust, in order to avoid military conflicts across the strait.

Third, the CPC and KMT will promote all-round economic cooperation, help cement economic and trade relations and promote the "three direct links" across the Taiwan Strait. They have also agreed to take steps to increase and guarantee investment and trade across the strait, enhance cooperation in agriculture and fishery sectors and facilitate the sales of Taiwan farm produce to the mainland. At the same time, the two parties will work together to promote the improvement of the order of cross-strait exchanges and the crackdown on crimes in order to establish a stable economic cooperation mechanism, and promote discussions for establishing a cross-strait common market, which will be regarded as an issue of priority once cross-strait consultations are resumed.

Fourth, the two parties will discuss the issue of Taiwan's participation in international activities after the resumption of cross strait dialogue. Priority will be given to the discussion about Taiwan's participation in the activities of the World Health Organization. The two sides will join hands to create conditions and find a final solution step by step.

Fifth, tile CPC and KMT have agreed to establish a platform for regular exchanges between the two parties, including exchange of visits between party officials at different levels, discussions on improving cross-strait relations and consultations on issues concerning the fundamental interests of Chinese compatriots on both sides of the strait. People from all walks of life will be invited to join in the discussions on measures to cement cross-strait exchanges.

The two parties have expressed the hope that the mainland visit of the KMT delegation and the historic meeting between the party leaders will benefit the people on both sides of the strait, open up a new chapter in cross-strait relations and lead to a bright future of the Chinese nation.

 

Communique on the Meeting of CPC General SecretaryHu Jintao and

PFP Chairman James Soong Chu-yu

May 12, 2005

At the invitation of Hu Jintao, General Secretary of the Central Committee of the Communist Party of China (CPC), James Soong Chu-yu, Chairman of the People First Party (PFP) in Taiwan, led a delegation to pay a formal visit to the mainland from May 5 to 13. This was the first ever party-to-party dialogue between the CPC and PFP, which is of great significance.

On May 12, Hu and Soong held a formal meeting in Baiting, during which the two sides exchanged frank and detailed views on the promotion and improvement of relations across the Taiwan Strait and on development of exchanges between the two parties.

On May 1 I, Zeng Qinghong, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Member of the Secretariat of the CPC Central Committee, met with the FFP delegation.

The two parties believe cross-strait relations are at a crucial stage and agreed that they should make joint efforts to ease the tense cross-strait relations, seek peace and stability in the region, enhance me well-being of people across the Taiwan Strait anti guarantee the general interests of the Chinese nation.

I. Promotion of resumption of equal talks across the Taiwan

Strait as soon as possible on the basis of the "1992 Consensus."

The consensus reached in 1992 should be respected. (The verbal expressions confirmed by the Taiwan's Strait Exchange Foundation (SEF) and the mainland-based Association for Relations Across the Taiwan Strait (ARATS) in 1992 are: the SEF states that during the process of pursuing reunification, both sides of the strait persist in the one-China principle, but have different recognition to the meaning of "one China;" and tile ARATS states that both sides of the strait persist in the one-China principle and will work hard to seek national reunification, but the political implications of "one China" won't be discussed in their working negotiations.)

On the basis that both sides should accept the one-China principle, namely the "1992 Consensus" ("two sides, one China"), measures should be taken to resume talks on an equal basis as soon as possible. Concrete measures should be taken to solve crucial issues of mutual concern on the basis of mutual respect and seeking common ground while reserving differences.

IL Firmly opposing "Taiwan independence" and jointly seeking peace and stability across the Taiwan Strait.

The attempt of "Taiwan independence" not only hurts the feelings of people living on both sides of the Taiwan Strait and hinders cooperation between them, but also seriously sabotages security and stability there and in the wider Asia-Pacific region. The two sides firmly oppose activities of "Taiwan independence" secessionist forces that jeopardize the status quo across the strait such as the "rectification of Taiwan's name" and "constitutional changes through referendum."

It is hoped that the leader of the Taiwan authorities earnestly honors the "Four no's and one no question" pledge and lives up to the commitment of not seeking "de jure Taiwan independence" through "constitutional changes" he reiterated on February 24. So long as there is no possibility that Taiwan is moving toward "independence," military conflicts across the strait can be effectively avoided.

III. Promoting the end to hostility and the buildup of a framework for peace across the Taiwan Strait.

The two sides should attain a formal ending of the state of hostility through consultation and negotiation in a bid to reach a peace accord and build a military mutual trust mechanism. They should join hands in safeguarding peace and security across the Taiwan Strait and securing peaceful and steady development of relations.

IV. Strengthening economic and trade exchanges and promoting tile establishment of a stable cooperative mechanism across the strait.

Unity and cooperation across the strait benefit both sides while separation harms both and exchanges lead to a win-win situation. Both sides are willing to promote overall economic and trade exchanges across the strait and launch sound interactions across the Taiwan Strait on the basis of mutual benefit and creation of a win-win situation.

The CPC and PFP will actively promote direct flight across the Taiwan Strait. Following the successful model of the direct chartered flight during the Spring Festival of 2005, both parties should take measures to realize the goal of having chartered passenger flights on festivals and on normal occasions and gradually promote facilitation of cargo transportation and the realization of two-way direct flights across the Taiwan Strait by 2006.

The CPC and PFP will promote direct trade and the removal of exchange restrictions to further achieve normalization of trade relations across the strait.

The two parties will promote talks and consultations concerning the establishment of long-term and stable mechanisms to facilitate trade across the strait (e.g. a free trade zone) after cross-strait talks are resumed.

The two parties call for closer agricultural cooperation across the strait and increasing sales of Taiwan farm produce on the mainland. The mainland promises to facilitate customs clearing, inspection and quarantine as well as exempt customs duties on some of Taiwan's farm produce (fruits) while the Taiwan side should facilitate their direct transportation.

Both agree to promote two-way direct investment by businesses across the strait, and "specific cooperation" in banking, insurance, securities, transportation and medical sectors. They agree to take measures to promote all-round economic exchanges and establish a stable economic and trade cooperation mechanism across the strait.

The two parties will promote cross-strait negotiations on how to avoid double taxation on business people on the basis of promoting mutual benefit.

Cross-strait people-to-people exchanges should be expanded and procedures on the mainland side should be further simplified for Taiwan compatriots coming to and leaving the mainland.

The mainland should apply the same rates of charges and fees on Taiwan students studying on the mainland as mainland students. Efforts are urged for the mainland to launch a scholarship for Taiwan students within the year.

The mainland side should encourage and promote the employment of Taiwan compatriots on the mainland.

V. Promoting negotiations on Taiwan's participation in international activities.

The two parties will promote discussion of Taiwan's participation in international activities after the resumption of cross-strait dialogue. Priority will be given to the discussion about Taiwan's participation in the activities of the World Health Organization. The two sides will join hands to create conditions to find a solution step by step.

VI. Promoting the establishment of a cross-strait nongovernmental elites' forum and service mechanisms for Taiwan business people.

The two parties have agreed to promote the establishment of a cross-strait nongovernmental elites' forum, to study various policy ideas, suggestions and proposals conducive to the development of relations. They also agreed to make joint efforts to establish and improve service mechanisms for Taiwan business people.

The two parties believe that the peaceful and stable development of the cross-strait relations conforms not only to the common interests of people on the mainland and Taiwan but also to the interests of the Asia-Pacific region and the world at large. Achievements in the talks of the two party leaders are conducive to enhancing mutual trust and will produce a positive impact on the improvement and development of relations. The two parties are willing to contribute to the well-being of compatriots across the Taiwan Strait and to the overall development of the Chinese nation.

 

Mainland to Facilitate Entry-Exit

of Taiwan Compatriots

The Chinese mainland pledged to offer more conveniences to Taiwan compatriots by facilitating their cross-strait trips, study and employment on the mainland, announced Chen Yunlin, Director of the Taiwan Work Office of the Central Committee of the Communist Party of China (CPC) and the Taiwan Affairs Office of the State Council, on May 13. The conveniences include simplifying procedures of entry and exit to the mainland, reducing tuition for students at the mainland universities and easing requirements for those who seek to work on the mainland.

In recent years, Chen said, the mainland has continuously adopted policies facilitating entry and exit of Taiwan compatriots to and from the mainland, accommodating Taiwan students on the mainland and encouraging Taiwan professionals to work on the mainland. Taiwan compatriots who invest and run business on the mainland and their spouses and children, as well as Taiwan students, can apply for multiple entry permits valid for one to five ears. Fujian Provincial Bureau of Public Security can issue five-year mainland travel permits to residents in Jinmen, Mazu and Penghu as well as other Taiwan compatriots who are working and studying on the mainland. The education authorities have removed age limits for Taiwan students who apply for mainland universities. Individual universities can set up their own entrance standards. The tuition of Taiwan students who are in mainland graduate schools has been reduced. Authorities concerned also allowed Taiwan compatriots to sit professional qualification tests for physicians, certified accountants and others. All these policies are widely welcomed by Taiwan compatriots, Chen said.

As personnel exchange and trade and economic cooperation across the Taiwan Strait are more frequent and more Taiwan compatriots choose to work or study on the mainland, Chen said, authorities concerned have decided to take further steps facilitating entry and exit of Taiwan compatriots to and from the mainland. First, those who stay on the mainland for more than one year can be issued residence stamps that are valid from one to five years. Taiwan compatriots who have such residence stamps need no entry or exit stamps when they travel. For those who come for short stays on the mainland, they can be granted multiple entries valid for one year. Second, Fujian Provincial Bureau of Public Security is authorized to issue one year-valid multiple entries to residents in Jinmen, Mazu and Penghu. Third, Shanghai Municipal Bureau of Public Security and Jiangsu Provincial Bureau of Public Security are authorized to reissue Taiwan Compatriot's Pass to the Mainland for those who lost their documents or whose documents have expired.

Chen said the mainland is concerned about students from Taiwan who are now studying in universities or colleges on the mainland. Tuition of these students will be reduced to the level of their mainland counterparts and the balance of the tuition and the actual cost of education will be subsidized by the government. The education departments will also take efforts to set up a scholarship for university students from Taiwan within this year. The director called on the Taiwan authorities to recognize the schooling records of Taiwan students studying on the mainland as soon as possible 1o protect their legitimate rights and interests.

According to Chen, talent exchange across the strait has always been encouraged. In recent years, with rapid economic development on the mainland, more and more people from Taiwan hope to work on the mainland. The labor departments are busily modifying relevant policies to ease requirements for Taiwan compatriots who seek jobs on the mainland; after the modification of the policies, Taiwan graduates from mainland universities will enjoy the same opportunity to work on the mainland as their mainland counterparts. The mainland will further open its job market to all kinds of professionals from Taiwan and encourage Taiwan compatriots to attend vocational qualification exams on the mainland. Such examinations can also be carded out in Taiwan when conditions are ready to facilitate employment of Taiwan compatriots on the mainland.

 

Third Round of Fortune

Why Fortune Forum selects China for the third time

The Ninth Fortune Global Forum opened in Beijing on May 16, bringing senior government officials and business leaders from across the world to China, and placing the capital squarely under global spotlight. This is the third time that the forum was held in China, first in Shanghai in 1999 and then Hong Kong in 2001. Just why has the Fortune Global Forum chosen China to host this event for the third time?

All Eyes On China

China has been among the most important global commercial hubs in the last few years and will continue to play this important role in the future, said Jaime Florcruz, Chief Representative of the Fortune Global Forum office in Beijing. As a business magazine, Fortune discusses an economy-related topic every two weeks and will hold a comparatively bigger business conference every several months, which is seen as the continuation and supplement of Fortune magazine.

He said different from these business conferences, Fortune Global Forum is much more significant and held around the world every 16 to18 months. Fortune is interested in the most important business events of the world; therefore the organizers seek to hold the conference in the most dynamic commercial center in the world during this period. According to Florcruz, Fortune Forum chose Beijing to hold the conference on the grounds that a lot of the world's most important business stories are taking place in China now and Beijing is the host city of the 2008 Olympic Games, which will bring very great business opportunities to all companies.

After being involved in the Shanghai Fortune Global Forum in 1999, global medical assistance giant International SOS, was again designated to provide medical support and assistance to participants of Fortune Forum, Beijing. The vigorous and sustainable development of China's economy is the most important reason that Fortune has chosen China to hold its conferences three times, said Zhang Yi, Managing Director of the International SOS China.

Increasing Appeal

Robert Bierman, President of Conference Division of Fortune magazine compared this conference and the Shanghai forum held six years ago. He first mentioned the scale. This forum in Beijing is the biggest ever held in its history, with participants coming from 44 countries. For the first time in a Fortune Forum there were participants from China in almost all the business sessions.

He believes that an even bigger difference is the change of focus. In 1999, many foreign corporations had just entered China, they began to understand China and became interested in the Chinese market. What they saw was the country's potential; the opportunities China might bring to multinational companies and the need to maintain a presence in China. Yet great changes have taken place over the last six years. Therefore, business leaders need to have further discussions over questions like why the Chinese market evolves so fast and what government and native commercial institutions have done for the market. These are also meaningful topics for the whole world.

Top leaders with Fortune Chinese edition believe there is a simple reason for the Fortune Global Forum to hold an optimistic view on China. Against the backdrop of a global economy in depression, the Chinese economy stands out with a high growth rate for over 20 years and continued growth momentum. China, without doubt, is home to boundless business opportunities and some of the most attractive market in Asia.

Increased Faith In China

The theme of Shanghai Fortune Global Forum in 1999 was "the coming 50 years for China", the theme of Hong Kong Fortune Global Forum in 2001 was "new look of Asia". and the theme of the Beijing forum "China and the new Asian century". Evolution of the themes of the three forums has reflected the integration of China's economy with the Asian economy and even the global economy.

Zhao Qizheng. Director of the Information Office under the State Council, thinks on one hand it shows China's economy has become an important driving force for the Asian economy and world economy and China and its neighboring countries in Asia are prospering through win-win cooperation; on the other hand it proves China's credibility has been greatly enhanced on the international stage.

Experts deem the Fortune Global Forum offers a good opportunity for China to know the world and for the world to know China. Through hosting such a business gala, Chinese companies can draw lessons from experiences, strategies and development plans of foreign multinational companies. On the other hand, China has a great opportunity to present itself to the world on such a platform.

The Chinese Government attached great importance to the Fortune Global Forum, The gala opening was held at the Great Hall of the People, during which Chinese President Hu Jintao delivered a keynote address. On that day, Hu also met Forum participants, including CEOs of the world's 500 largest multinational enterprises and heads of Hong Kong and Macau-based companies.

 

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