Dear Mr. Siva Yam,

Distinguished guests,

Ladies and Gentlemen,

Good Afternoon.

It is my great pleasure to attend this luncheon. On behalf of the Chinese Consulate General in Chicago, I would like to express my warmest congratulations on the Eighth Annual US-China Trade Conference, which is made possible thanks to the efforts of Mr. Siva Yam and US-China Chamber of Commerce. I believe this conference will give us a very good chance of sharing our thoughts, experience and perspectives about the latest China's development, and opportunities for doing business in China.

Over the past few years, China's economy has grown in real terms by over 10 percent annually. In 2006, China's GDP reached 2.6 trillion US dollars, up by 11% and ranking 4th in the world. In the first half of this year, China's GDP increased by 11.5% and it is forecasted that China is going to overtake Germany as the world's 3rd largest economy by the end of this year.

Since China's entry into the WTO in 2001, all laws and regulations in the trade area have been sorted out and modified in an effort to shape up a unified and transparent legal framework compatible with the WTO rules. By the end of 2006, all the commitments China made in the WTO have been fulfilled, and by the end of June 2007, 75 countries, like Australia, New Zealand, Switzerland, to name a few, have recognized the full market economy status of China. That means the Chinese market has been much further liberalized, expanded and standardized. This will also created a more business friendly environment with fair and just competition for foreign businesses in China.

In the meantime, China-US trade relations have become closer and closer. Up to now, US and China are both the second largest trading partners for each other and China has jumped to 4th largest and continued to be the fastest growing export market for US. In 2006, US exported 55 billions of goods to China, which exceeded the total of US export to India, Brazil and France. The number was increased by 32% over the year 2005, which was much higher than the growth rate of US export to other major markets.

Bilateral trade is growing fast. So is two-way investment. The US is one of China's largest foreign direct investment sources. By the end of 2006, there were more that 50,000 US companies in China, with about 54 billion dollars of actual input. At present, China has become one of the major overseas profit sources for US companies. Meanwhile, US has become one of the important destinations for Chinese companies "going global", exploring overseas business. By the end of 2006, Chinese companies' had made 3 billion dollars of investment in the US, with over 1,100 companies here. Tens of thousands of jobs created by Chinese companies' investment in the US have helped alleviate employment pressures of the places where the companies are located, thus contributing to America's economic and social development too.

Ladies and Gentlemen,

China has been in the process of reform and opening up for nearly three decades and China will continue this cause for many years to come. China has identified the goal of building a well-off society for the next 20 years. By 2020, China's GDP is expected to exceed 4 trillion dollars, consumer goods retailing to reach 2.4 trillion dollars and annual import to beat 1.5 trillion dollars. By 2010, China is likely to be the 2nd largest market in the world. China, with its 1.3-billion population, fast and stable economic development, is a source of unlimited business opportunities, and provides its many partners with a large market and greater possibilities of cooperation.

Looking into the future, we're also confident about the broad prospects of China-US trade and economic cooperation. As the biggest developing country and developed country in the world, China and US differ greatly in terms of economic development level and economic structure, but are strongly complementary with each other in terms of natural endowment, human resources, market, capital, technologies, etc. It is proven that economic complementarities between China and the US together with mutual benefits in trade and economic cooperation are the foundations and driving forces for sustaining China-US economic and trade ties. Strengthening China-US trade and economic cooperation is in the interests of both countries and both peoples.

In such a fast-growing and large-scale bilateral trade, problems and frictions are commonplace and inevitable. Here, I would like to quote the recommendations for the US government made by the American Chamber of Commerce in China in its 2007 White Paper as follows: The first, as envisioned under the U.S.-China Strategic Economic Dialogue, is to continue to build a foundation contributing to long-term sustainable economic growth for both economies. Second, Congress should refrain from legislation that attempts to change the terms of trade with China by currency re-alignment or any other drastic solution. And third, the U.S. Government should support U.S. companies with the resources necessary to reap the benefits of these efforts, including business-friendly export controls, visa policies and trade promotion.

The American Chamber of Commerce in China represents the US businesses there. I fully agree with their views and recommendations. I also would like to encourage our business friends here to go to your senators and representatives, tell them the facts and convince them that both China and US businesses should seize the opportunities of the times and the opportunities in the market, be more actively engaged in reciprocal cooperation for win-win outcomes, and to solve problems needs to apply great foresight and a strategic vision, and resorts to consultation and intensified cooperation rather than confrontation and retaliation.

Personally, I have been in Chicago only about 4 months, and this is the first time I am attending this event. My colleagues have told me that this conference has been held for eight years already, and those who are present here today are not only members of the Chamber, but also many non-member companies; and not only from Chicago and Illinois, but also a lot from out of State. I would like to thank you all for coming today, and wish your businesses in China success.

Last but not the least, I would like to pay my tribute to the great endeavor that Mr. Siva Yam and all the members of US-China Chamber of Commerce has been making to promote the trade and investment cooperation between China and US. I sincerely wish this year's conference another great success.

Thank you.