Dr. Eddy Maloka,

Ladies and Gentlemen,

First of all, I would like to express my thanks and appreciation to you for inviting me to visit your beautiful country and kindly extending warm hospitalities to me since my arrival. I am very pleased and honored to have the opportunity to be here as this is my first visit to your great country in my long diplomatic career related to Africa. It is also a great pleasure and honor for me to join you this morning because I am aware that I am in a leading think tank of South Africa, which is renowned and prestigious not only in South Africa, but also in the African continent at large. Now, I would like to take this opportunity to brief you about China's economic development in recent years and present my views on the development of Sino-African relations and new opportunities for future cooperation between China and Africa.

Part One: China's Economic Development

Many people are interested in the so-called Chinese miracle. It is true that we have achieved a lot. In the past 25 years, China has undergone enormous and profound changes by focusing on economic development and pursuing the policy of reform and opening-up. China registered a 9.4% average annual growth rate for its national economy, 7% for people's consumption level and 16% for total import and export volume. China's GDP grew from USD 147.3 billion in 1978 to USD 1.65 trillion in 2004, total foreign trade volume was up from USD 20.6 billion in 1978 to USD 1.15 trillion in 2004 and foreign exchange reserve up from USD 167 million to USD 609.9 billion in 2004. The actual utilization of foreign investment totaled USD 562 billion by the end of 2004. The proportion of Chinese economy in the global economic aggregates increased from 1% in 1978 to 4% and the proportion of foreign trade volume from less than 1% to 6% during the same period.

China has become one of the fastest growing countries in the world. We have achieved substantial enhancement of social productive forces and overall national strength, registered all-round development in all social undertakings and made a historic breakthrough by ensuring our people a reasonably well-off life. China, a country of 1.3 billion people, has succeeded in meeting the basic needs for food, clothing and shelter, and its people have on the whole been able to live a moderately comfortable life. The per capita GDP of China exceeded USD 1,000 for the first time in 2003, the impoverished population reduced from 250 million to less than 30 million, and the Chinese average life expectancy increased from 35 years before the founding of the People's Republic of China in 1949 to 71.8 years last year.

The sustained rapid development of China's economy is attributable to the following factors: the government's adherence to economic development as the central task, solution to the problems on the way forward and to building socialist market economy as the direction of reform; the recognition of the basic role of market in allocating resources and the application of macro-control measures by economic and legal means; the relentless efforts for institutional innovation, which has lent a strong impetus to socio-economic development; the policies of "inviting in" and "going out" and active participation in international economic and technical cooperation and competition in a bid to make full use of both domestic and foreign markets and resources.

However, we are keenly aware that China is still a developing country. While China's per capita GDP has exceeded USD 1,000, it is still out of the list of the top 100 countries in the world. It is facing same or similar difficulties and challenges as those of other developing countries including Africa,such as low productivity, serious regional disparity and quite acute contradictions among the environment, natural resources and economic and social development. In his REPORT ON THE WORK OF GOVERNMENT last March, Premier Wen Jiabao outlined the problems and difficulties in China's economic and social development. First, although the outstanding problems in economic activities have been somewhat alleviated, they have yet to be fundamentally solved. Weaknesses in agriculture as the foundation of the economy still have not improved substantially, and it has become harder to continue increasing grain production and rural income. In addition, there is a possibility of a return to overheating in fixed asset investment; supplies of coal, electricity, petroleum and transportation are still very tight, and there is also considerable inflationary pressure on prices. Second, there are glaring problems in social development. We still need to solve quite a few problems in education, public health and culture in some areas, especially in rural areas. The development gaps between urban and rural areas and between different regions and the income gap between some members of society are all too wide. Some low-income people lead difficult lives and there are more than a few factors threatening social stability. Third, there are still some longstanding and deep-seated problems in economic and social development. The main ones are as follows. There is considerable pressure on employment. The economic structure is irrational, the level of industrial technology is low, and tertiary industry is developing too slowly. The investment rate continues to be too high, and consumption remains weak. Economic growth is still too crude, and pressure on resources and the environment is increasing. In particular, there are still prominent structural and mechanistic problems that hinder sound economic and social development.

There is a long way to go before China achieves modernization and it will require long-standing and painstaking efforts to be made by generations to come. Fortunately we have already found a path of development suited to China's national conditions. We have brought forward the scientific development notion that insists on human-orientation, comprehension, harmony and sustainability. As long as we firmly follow this path, we will achieve the goal of building a well-off society in an all-round way and rejuvenate the Chinese nation.

Part Two: Sino-African Relations

Personally, I have very strong affection towards Africa. I started my diplomatic career in 1950s dealing with African affairs. I had the honor of being engaged in receiving President Nujoma of Namibia when he first visited China as head of SWAPO in 1961. I served in the Chinese embassies in Kenya and Nigeria in 60s and 70s respectively. When I served in the Chinese Permanent Mission to the UN in late 70s and early 80s, I sat on the Special Committee on Decolonization and UN Council for Namibia and attended meetings of the Special Committee against Apartheid as representative of my country. I became Director-General of the African Department of the Foreign Ministry in mid-80s when I had opportunities of participating in the receiving of visiting African heads of states or governments and also accompanying Chinese leaders to visit African countries. In fact, I have been to most of the African countries including some of your neighbors. During the years when I served as Under-Secretary-General in the UN Headquarter towards the end of last century and beginning of this century, a considerable part of my work was related to Africa. Thus, I have witnessed by myself the development of close relations between China and Africa and the profound sentiments of the two peoples towards each other.

Africa is a continent with time-honored history, brilliant cultures, rich natural resources, beautiful landscape and down-to-earth people. I am particularly inspired by the enterprising spirit the African people have demonstrated in their dauntless efforts in the rejuvenation of Africa in spite of all the difficulties. Our times are moving forward. So is Africa. The pursuit of peace, stability and development has become the consensus and goal of all countries in Africa. Countries in Africa have taken economic development, poverty reduction and improvement of the livelihood of the people as their top priority. The African economy as a whole has maintained growth for over 10 years in a roll. African countries have jointly formulated the New Partnership for African Development (NEPAD) to collectively respond to the challenges of economic globalization and jointly safeguard their legitimate rights and interests. The Chinese people heartily rejoice at every achievement that you score and appreciate the important role that South Africa plays. We are convinced that with the concerted efforts of all countries and peoples in Africa, the continent will usher in a still better future.

Both China and Africa were origins of human civilization, and shared similar experiences in modern and contemporary history. The Chinese people and the people of Africa have all along given sympathy and support to each other in their struggles for national independence and in their efforts for nation building and socio-economic development. The Chinese government and people have provided African countries with selfless assistance with no political preconditions, while African countries have also given China much valuable support. The Chinese people will never forget that in 1971 it was African countries that helped restore the legitimate seat of the People's Republic of China in the UN. Over the years, without the firm support from African countries, China could not have defeated anti-China draft resolutions tabled by some western countries at the UN Commission on Human Rights, and moves made by a handful countries on Taiwan's so-called participation in the UN and WHO.

Sino-African friendship is in conformity with the fundamental interests of both Chinese and African people and has a broad prospect. The Chinese Government always attaches great importance to Africa. It has consistantly been an important component of China's independent foreign policy of peace to develop and strengthen the friendly relations and cooperation with African countries. As China is the largest developing country in the world and Africa has more developing nations than any other continents, China-Africa cooperation constitutes an important part and parcel of the South-South cooperation.

In recent years, the relations between China and Africa are getting closer and more diversified. Exchange of high-level visits has been on the rise, and we have seen frequent personnel exchanges, ever-closer political relations and rapidly growing economic ties and trade between us. We have conducted productive collaboration in various areas and constantly strengthened consultations and coordination in international affairs. In particular, the launch and growth of the Forum on China-Africa Cooperation have set up a new platform and mechanism for our collective dialogue and practical cooperation, thus ushering in a new era of China-Africa cooperation.

Part Three: New Opportunities for Sino-African Cooperation

A sound and rapidly growing Chinese economy serves the economic development of our region and that of the world at large. Although China's GDP is barely 4 percent of the world's total, it contributes more than 10 percent of the global economic growth; China's foreign trade volume is less than 6 percent of the world's total, but it contributes some 12 percent of global trade growth. China's economic development has thus become an increasingly important driving force behind the world economy. The development of China's economy has expanded the fraction that developing economies accounted for in the world economy, which reached 18 percent in 2002. By opening itself wider to other economies, China has optimized the world industrial structure. China's economic development has also created employment opportunities for other countries. Over the three years since China joined the World Trade Organization, it has imported USD 1.2 trillion worth of goods. In fact, China's annual average import has been growing at more than 20 percent, increasing production and employment opportunities for foreign countries. China's trade deficit with Asian and Latin-American countries becomes bigger and bigger, because these countries have seized the opportunity of the huge demand of the Chinese market. The technological transition between China and those countries is also beginning.

China's development will also contribute to the enhancement of Sino-African cooperation in many fields:

First of all, it will promote bilateral trade. The stronger China's economy grows, the more primary products it will need from Africa. Trade between China and Africa has grown rapidly. The trade volume surmounted USD 10 billion in 2000, reached USD 18.55 billion in 2003, and jumped to USD 29.46 billion in 2004, up by 58.9% over the previous year, with China's export standing at USD13.82 billion, up by 35.7% and import USD15.646 billion, up by 87.2%. The bilateral trade between China and South Africa also increased substantially, totaled USD 5.91 billion in 2004, up by 52.8% over the previous year, with China's export standing at USD 2.95 billion, up by 45.5% and import USD 2.96 billion, up by 60.9%. China and the South African Customs Union (SACU) have agreed to begin negotiations on the conclusion of a free trade agreement. China has granted duty-free treatment to a selected number of export items from 28 LDCs in Africa.

Secondly, it will promote mutual investment and mutually beneficial economic cooperation. Our economies are highly complementary to each other. Based on the principle of mutual benefit, reciprocity and common prosperity, the cooperation between China and Africa has enjoyed a heartening momentum. Mutual investment, Chinese project contracting and labor cooperation in Africa increased markedly in scope and scale. Bilateral cooperation in energy, natural resources, telecommunications and other areas was off for a good start. According to incomplete statistics, direct investment by Chinese companies to Africa has totaled USD 625 million, with USD 135 million in 2004. This will do good to the re-employment and optimization of industrial structure of African countries.

Thirdly, it will build up China's capacity to help Africa. Under the scheme of China-Africa Cooperation Forum, China has timely honored its commitment of debt relief by reducing a total amount of 10.5 billion RMB debt owed to China by 31 African countries. As I understand, the Chinese Government is ready to continue to help ease the difficulty of certain African countries to pay back the debts through friendly consultation and to urge the international community, developed countries in particular, to take more substantial action on the issue of debt reduction and relief for African nations. Meanwhile, in light of its own financial capacity and economic situation, China will do its best to provide and gradually increase assistance to African nations with no political strings attached. Now China's aid to Africa stands about 1/3 of its total aid abroad.

Fourthly, there will be more opportunities and areas in which China and Africa can learn from each other, such as the experiences in rural development, state-owned enterprise reform, social insurance system reform, poverty reduction, re-employment training, etc.

Finally, it will help strengthen the cooperation between China and Africa in international affairs, safeguarding the rights and interests of developing countries more effectively, as China-Africa cooperation is a very important part of south-south cooperation.

Ladies and Gentlemen,

The world is undergoing profound changes. Given the new situation of world multi-polarization and economic globalization, to further China-Africa friendly relations and cooperation serves the fundamental interests of the two sides and is conducive to their common development, the reinforcement of South-South cooperation and the promotion of world peace and development. China and African countries face the common task of developing the economy and improving people's livelihood. China is a country with a strong sense of responsibility. China is ready to contribute its share in advancing win-win cooperation for sustainable development with African countries.

Thank you.