China-US Relations and the State Visit by President Xi Jinping Speech at the World Affairs Council of Northern California by Consul General Luo Linquan August 19, 2015 Your Excellency Ambassador Jeffrey Bleich, Dear friends, It is my pleasure and honor to speak at the diplomat luncheon hosted by the World Affairs Council, one of the most influential international forums in the great and beautiful state of California. First of all, I would like to thank President Jane Wales and Ambassador Bleich for inviting me. My thanks also go to all participants and friends from media for your interest in China-US relations. I come here today not only to share my view with you, but also to learn from you on how to promote the important beneficial relations. In my over 35-year service as a career diplomat, I always have a special feeling on the United States, because my first foreign post was in the US. From 1984 to 1986, I worked as a young diplomat in Chinese Consulate General in New York. That two years and one month’ experience laid a solid foundation for my career life. To some extent, the US is just like my second home town. 1 Later, promoted to be Deputy Chief and then Chief of Protocol of Foreign Affairs Ministry, I accompanied many high-level delegations to visit the US, including the state visits by President Jiang Zemin in 1993 and President Hu Jintao in 2006. I also received the visits by President Reagan, President Clinton, President Bush and many other US leaders to China. As you know, at the invitation of President Obama, Chinese President Xi Jinping will pay his first state visit to the US in September. At the eve of the visit, it is especially meaningful to review the history of China-US relationship and look into the future. With the reasons known to all, China and the United States had a long period of estrangement. "Ping-Pong diplomacy" broke the ice and paved the way to President Richard Nixon's visit to Beijing in 1972. On January 1st, 1979, China and the US established formal diplomatic relations. Same month, Chinese leader Deng Xiaoping visited the US. Over the past 36 years since then, thanks to the joint efforts from both sides, China-US relationship has achieved remarkable development despite twists and turns. This relationship has become one of the most important bilateral relationships in the world. We have conducted extensive exchanges and cooperation in nearly all areas including political, economic, educational, cultural, people-to-people and international affairs. History has proved that China and the US both gain from peaceful coexistence and cooperation, and lose from conflicts and confrontation. Please allow me to give some detailed explanation. 2 First, Economic and Trade Relations China-US economic and trade relations is a critical pillar for our bilateral relations. It is mutually beneficial in nature. As the biggest developing country and the biggest developed country respectively, China and the US enjoy great complementarities in terms of natural and human resources, market, capital and technology. In 1979, the annual trade volume between our two countries was just 2.45 billion US dollars. Last year, the figure exceeded 590 billion US dollars, an increase of over 240 times in 36 years. Today, China and the US is each other’s 2nd largest trading partner, which brings tremendous benefits for our two peoples. China is the 3rd largest export market and the largest source of import for the US. More than 60,000 US enterprises have invested in China, including Apple, Intel, HP, Wal-Mart, McDonald's and Starbucks and many others. Many Chinese households use Microsoft software, make calls on iPhones, drive General Motors cars and watch Hollywood movies. At the same time, Chinese companies’ investment in the US also witnessed remarkable increase. Deepening economic ties have boosted the growth of countries, creating more jobs and bringing tangible benefits to the people of both nations. China and the US are now working on Bilateral Investment Treaty negotiations, which once realized, will further deepen our economic and trade cooperation. 3 According to the latest report, our two countries will become each other's top trading partner by 2022, and the US export to China will exceed 530 billion US dollars, which means over 2.5 million new jobs in the US will be created. I also have some figures about California. Among all the 50 states, California has been playing its leading role in China-US relations. In 2014, trade volume between China and California reached 154 billion US dollars, accounting for 26% of China-US trade volume. Chinese investment in California reached 2.7 billion US dollars the same year, helping create thousands of jobs in California. In April 2013, Governor Edmund Brown paid a successful visit to China and re-opened California-China Office of Trade and Investment in Shanghai. California and 7 Chinese provinces established Trade and Investment Cooperation Joint Working Group, which becomes the first such institutional platform for promoting state-province economic and trade investment cooperation between China and the US. As a leading state in agriculture, hi-tech, tourism, culture, clean energy industry, and the gateway to the Pacific, California’s cooperation with China has a great potential and a bright future. Second, Political Relations Since China and the US resumed contact 36 years ago, the two sides have seen frequent high-level visits and improving dialogue mechanisms. 4 Today, there are over 100 dialogue and cooperation mechanisms between our two countries. The most well-known ones are the Strategic and Economic Dialogues, the High-Level Consultation on People-to-People Exchanges, the Joint Commission on Commerce and Trade. Late June, our two sides successfully held the 7th round of S&ED and the 6th round of CPE in Washington D.C. The meetings have injected great positive energy to the overall development of the bilateral relations. The bilateral sub-national relations also grow fast. Up till now, there are 41 pairs of sister province/state and 201 pairs of sister city between China and the US. For example, California is the sister state of Guangdong Province. San Francisco is the sister city of Shanghai. China-US Governors Forum and the Mayors Conference were established in recent years, and several rounds of fruitful meetings were held in both countries. All the dialogues help to promote mutually beneficial cooperation and properly manage differences between China and the US. Third, People-to-people Exchanges In 1979, only a few thousand Chinese and Americans visited each other’s country. Last year saw the figure increased to 4.3 million, which means each and every day, more than 15,000 people are flying over the Pacific Ocean. Every 17 minutes, there is a flight taking off or landing between our two 5 countries. With the mutual 10-year visas policy since last November, we are confident that the two-way visitors will set a new record this year. Our two sides also launched a series of initiatives in the fields of education, science and technology, culture, sports, women and youth exchanges. In December 1978, 52 Chinese were first sent to study in the US. In February 1979, 8 Americans set forth on a journey to study in China. Last year, 275,000 Chinese students studied in the US while 24,000 Americans studied in China. Last year, 75 Chinese universities hosted approximately 12,000 American scholars, and 217 symposiums were held jointly by China and the US. China has pledged "Three Ten-thousand Programs", that is, to provide scholarships for 10,000 US students to study in Chinese universities, to sponsor 10,000 scholarships under the “Chinese Bridge” program, and to send 10,000 Chinese to pursue doctorate degrees in the US. The US has also launched the "One Hundred Thousand Strong Initiatives" to send 100,000 US students to study in China. The growth of people-to-people exchanges between our two countries is unprecedented in history. Fourth, Cooperation in International Arena China and the US maintain close and effective communication and coordination on major regional and international issues, including the Korean Peninsula, Iranian nuclear, Afghanistan, counterterrorism, energy security, public health and climate change. 6 Through close coordination in fighting various challenges, China and the US are tremendously contributing to regional and global peace, stability and prosperity. I also would like to take this opportunity to introduce China's recent development. Since its economic reform and opening-up policy, China has step by step transformed from an isolated poor country into a new engine of the world economy. After 3 decades of high-speed growth, Chinese economy enters a state of New Normal. The gear of growth is shifting from high speed to medium-to-high speed, and our focus of development is more on quality instead of quantity. We will let the market play a decisive role in resource allocation. China stock market drop reflects the adjustment of China's economy. The so-called "China economy collapse" is entirely groundless. This year marks the 70th anniversary of the victory of the World Anti-Fascist War and the founding of the United Nations. As allies in WWII, China and the US fought shoulder by shoulder, and share common interests in upholding the outcomes of the victory of WWII and the existing international order with the UN as the core. China will host a major commemoration on September 3rd to mark the 70th anniversary. We will remember the heroes, reflect on history and the value of peace. We will never forget American Flying Tigers pilots and the Hump airmen who risked their lives and helped Chinese people during the wartime. 7 The year of 2015 will see a series of great events in China-US relationship, of which the most important one is the up-coming visit by Chinese President Xi Jinping to the US next month. During their meetings in California in 2013 and in Beijing 2014, President Xi Jinping and President Obama had in-depth discussions and agreed to build a new model of major-country relations. The essential features of this relationship include "no conflict or no confrontation", "mutual respect" and "win-win cooperation". It is a priority in China's foreign policy to jointly build a new model of major-country relationship with the US. In the face of complex and ever-changing international situation, our two countries should seize the correct direction to avoid zero-sum game. History has proved that China’s success lies in its commitment to peaceful development. We will continue to pursue the path of peaceful development and the independent foreign policy of peace. We have never had the strategic intention to challenge or replace the position of the US. China and the US are both Asia-Pacific countries and should make joint efforts for peace and prosperity in the region. Just as our President Xi Jinping says, the Pacific Ocean is big enough for China and the US. Today, our two sides are working closely to make preparations for President Xi's visit. We can feel that American people warmly welcome the visit and hope China-US relations sound and stable. We are confident that President 8 Xi's visit will be a great success and will have far-reaching and major positive implications in the years ahead. As an old saying in China goes, only heart-to-heart exchanges can last long. Although China and the US differ in political systems, as long as we open up our hearts to each other, respect each other and seek common ground while putting aside differences, we can bridge any gap and usher in a more promising future for our new model of major-country relationship. As a senior diplomat involved in China-US relations for over 30 years, I am fully confident in the bright future of our bilateral relations. Let us work together to make preparations for President Xi Jinping's visit. Let us work together for a better China-US relationship! Thank you. 9