The world should not fear a growing China
By Li Keqiang
Published: January 9 2011 20:40
There is a long history to China’s pursuit of the path of peaceful development. The Book of Songs, a collection of Chinese poems and songs compiled more than 2,000 years ago, reads, “Give relief to people who have toiled much, so they may enjoy a life of Xiaokang. Promote it (Xiaokang) throughout the Central Kingdom and peace will be secured for all the four quarters.” What it means is, when people work too hard, they should be given relief so that they may lead a comfortable life. Doing so benefits the people of China – and the world.
The term “Xiaokang” is used today to refer to a society where people can receive education, get paid through work, have access to medical services and old-age support, have a shelter and more than enough food and clothing and lead a well-off life. To build a Xiaokang society in all respects is China’s development goal by 2020. The Chinese people both long for a happy and peaceful life for ourselves and hope to enjoy harmonious relations with our neighbours. China’s development calls for international co-operation over access to markets and resources, and more importantly requires a peaceful external environment. World peace is an important condition for China to achieve Xiaokang, or moderate prosperity, and China’s development in turn is conducive to world peace.
China’s development benefits other countries. For the past few years, China has contributed 10-20 per cent to world economic growth. Its contribution in 2009 was 50 per cent. Estimates show that in 2010 China’s economy grew by about 10 per cent, and retail sales rose by 18.5 per cent. Domestic demand contributed more than 90 per cent to China’s growth. At the same time, expanding domestic demand has increased China’s imports. It is estimated that in 2010 China’s imports from other parts of the world may well top $1,390bn, ranking the second in the world. China needs to stabilise and expand external demand. At the same time, and more important, it will boost domestic demand. With its population making up one fifth of the world’s total, China offers a market with enormous potential. We welcome the entry into our market of competitive goods and services from around the world, and will provide a fair and even more transparent environment for foreign investors.
China is committed to work with other countries for a solution to the global challenge of energy and resources. In the past five years, China has worked hard to save energy and resources. China’s energy consumption per unit of gross domestic product has dropped by about 20 per cent. In the coming five years, China will vigorously develop the green economy and low-carbon technologies to bring down significantly energy consumption and CO2 emission per unit of GDP. China relies on domestic supply for more than 90 per cent of its energy consumption, and will continue to rely on domestic supply to appropriately address the issue of energy and resources. By enhancing domestic exploitation and development, China will build a new group of strategic reservoirs of energy and resources.
China is a constructive player in the reform of the global economic governance structure. China is a beneficiary of economic globalisation. It calls for reform of the international political and economic order in the course of development. China worked closely with the international community to address the financial crisis and promote global recovery and growth. The world will come to see that the constructive role China has played in global governance is helpful in getting the world economy back towards full recovery and prosperity.
China, as a major country, does not shirk its responsibilities. In recent years, it has arranged nearly $4bn of debt relief for 50 developing countries and it has contributed more than 15,000 peacekeepers. China has actively mediated in areas of regional tension, such as the Korean peninsula, the Iranian nuclear issue, the Arab-Israeli conflict and Darfur. It has acceded to nearly 100 multilateral international conventions, such as on the suppression of acts of nuclear terrorism. It has made solid contribution to the United Nations Millennium Development Goals, the International Monetary Fund bail-out programme, the reconstruction of Afghanistan and disaster relief. It sticks to the principle of common but differentiated responsibilities and has taken concrete actions in tackling global climate change. China will remain conscientious in fulfilling international responsibilities consistent with its status as a major developing country.
Reform and opening-up are the driving forces behind our development. China will be steadfast in promoting reform. It will stick to the market orientation of reform and give greater play to the fundamental role of the market in resource allocation. At the same time it remains devoted to greater opening-up, follows a strategy of mutual benefit with other countries and will open the country ever wider to the world.
The progress China has made in development is tremendous, but it is still a developing country, facing grave challenges and has a long way to go before it can build a moderately prosperous society and achieve modernisation. China’s development will not be possible without the world – and world development needs China. We are committed to work even more closely with other countries to create a bright future for all.
The writer is China’s vice-premier
