Mr. Chairman,

At the dawn of the new millennium and new century, we are pleased to see the Asian economy recover steadily. Asian countries continue their readjustment and restructuring and regional cooperation progress smoothly with continued good development prospects for Asia. At the same time, Asia is also faced with a host of challenges. It still takes time to eliminate the impact of tbe financial crisis and it is an even more protracted and arduous task to respond to and capitalize on the knowledge economy.

A review of Asia's development process over the past half a century, especially in the recent 30 years, clearly tells us that the success and failure or ups and downs of Asia are always closely related to the process of economic globalization.

Economic globalization has obviously brought Asia opportunities and benefits. Asian countries, East Asian ones in particular, have seized such precious opportunities as market openness, commodity exchanges, capital interflow and technology transfer. As a result, they have achieved a rapid economic growth, gradually lifted the lives of their people and built Asia into one of the most dynamic and promising regions in the world.

Undeniably, economic globalization has also presented Asia with risks and challenges. The extensive and close links of the economies in the world have increased the vulnerability of Asian economies to fluctuation, the disorderly flow of short-term capital is impairing and even ravaging economic and financial stability, the unequal international economic order has exacerbated the development gap between the South and the North, and the erroneous theories such as "human rights overriding sovereignty" and "humanitarian intervention knowing no boundary" have eroded the foundation of the norms governing international relations and threatened the sovereignty and security of developing countries.

All in all, economic globalization is a double-edged sword. For most developing countries, it means challenges and pressures more than opportunities and benefits.

To take advantage of the favourable factors while avoiding the unfavourable ones in the process of economic globalization so as to promote the long-term development and prosperity, Asian Countries need to make efforts in the following aspects:

• Take an active part in economic globalizaition. To adapt to the international environment of economic globalization, Asian countries should, in light of their own national conditions development levels and comparative advantages, press forward readjustment and reform, upgrade their industrial structures, promote scientific and technological advances, steadily increase their aggregate national strength, competitiveness and the capacity to protect themselves from risks. They should get strong through globalization.

• Gradually expand regional economic cooperation. This is an important revelation that Asian countries have learned from the financial crisis. It is gratifying that a good beginning has been made in East Asian cooperation. Countries in the region should strengthen their cooperation in finance, trade investment and technology on the basis of equality and mutual benefit so as to take advantage of each other's strengths, and attain common development. This is an important way, for countries in the region to meet the challenges of globalization.

• Share the benefits of globalization. Economic globalization should be a process leading to the common prosperity of the South and North, rather than one of polarization of the world. In view of the growing accumulation of wealth by a few countries or interest groups and the widening gap between the rich and poor in the whole world, we appeal to the developed countries to fulfill their duties and obligations, further open their markets to developing countries, offer them financial and technical assistance, and work hand in hand with them to reform the international financial architecture, improve the rules pertinent to international trade and establish a just and reasonable new international economic order.

• Democratize the international relations. At the age of globalization, the cultural traditions, lifestyles, social systems and values of different countries should be respected and the principles of sovereign equality and non-interference in other countries' internal affairs maintained. This is how human civilization and world democracy develop. To impose a certain system, value or development model on other countries does not represent the progress of history. On the contrary, it will only aggravate injustice and inequality that may occur in the process of globalization.

Mr. Chairman,

For China, globalization has both advantages and disadvantages. We have adopted the right principles and policies and taken an active part in the process. As a result, in a short span of just over two decade China has scored tremendous achievements in its socialist modernization drive and made historical progress in lifting its people from poverty and ensuring them a more comfortable life.

Currently, China's economic development has entered a critical stage of shifting the growth mode and improving the quality and efficiency of growth. We will make strategic readjustment of the economic structure, vigorously develop new and high technology and high-tech industries, build an information-based national economy, continue to deepen the reform of the economic system, further implement the strategy of revitalizing the country through science, and education and step up the building of a state renovation system for science and technology. In addition, China will speed up its all-directional opening-up endeavour, and take part in the process of economic globalization in a wider spectrum of areas such as commerce, foreign trade, finance, insurance, securities, telecommunications, tourism and intermediary services.

While participating in the process of economic globalization, we will carefully and properly handle the following sets of relationships: 1. The relationship between participation in the globalization process and independent development. While relying on our own for development, we should make vigorous efforts to import advanced science and technology and managerial expertise. 2. The relationship between participation in the process and maintenance of national interests. We sbould defend the rights and interests of China and other developing countries while participating in the drafting of new international economic rules. 3. The relationship between participation in the process and safeguarding our economic security. While improving our competitiveness in the world, we should take necessary measures to exert effective monitoring and control over those sectors that are vital to the lifelines of the national economy and establish necessary safeguards.

In short, we stand ready to work with the people of other Asian countries to meet the challenges of globalization and constantly advance the development, progress and civilization of humanity.