(February 18, 2016)

Good evening and happy Chinese New Year.

I am delighted to join you again at the annual Chinese New Year Dinner of US-China Chamber of Commerce. I want to thank President Siva Yam for his kind invitation and wish everyone of you a healthy and prosperous Year of the Monkey.

I don’t know how many monkeys there are in this world, but I am sure at least one monkey is known to many people. Yes, he is Sun Wukong, the handsome King of the Monkeys. I hope you will have full confidence in this brave and wise legendary monkey, and I believe the Year of the Monkey will be another good year for all of us.

Since this new year party is organized by the US-China Chamber of Commerce, I think it’s appropriate for me to share with you some of my observations on China’s economy. I will emphasize the following three points.

First, in spite of huge downward pressure, the fundamental elements of the Chinese economy remain positive, and China’s economic growth is still within reasonable range. The Chinese government is well aware of the all the difficulties and challenges and has adequate policy tools and financial resources at its disposal. As Premier Li Keqiang reiterated several days ago, once the economic growth shows signs of slipping below the reasonable range, China will take decisive moves without any delay.

Second, the firm determination of the Chinese government in preventing a sustained devaluation of Chinese Renminbi yuan will be fully recognized by more people. The Chinese government has stated once and again that there is no basis for such a sustained devaluation. China simply has no intention to purposely devalue its currency in order to achieve export advantage, because China continues to enjoy huge trade surplus and the largest foreign reserve in the world. On the contrary, China will be on high alert as always for any malicious selling of the RMB by speculative forces to create panic in market.

Third, the power of reform should never be underestimated. China is the only country in the world which has conducted reform and opening-up for more than 30 years and is still pursuing this course with even greater enthusiasm. Through reforms, China will further improve its economic, social and political systems and create even more favorable environment for China’s social and economic development.

I think I should not let President Ni Pin wait too long, so I will stop here. Thank you.