China also faces many challenges in its development endeavor, such as improving the performance of stable growth, addressing energy, resource and environmental constraints on development, and ensuring food security and safety. The challenges we face are enormous, but making proper response to these challenges will create new sources of growth and new space of development.

China is committed to reform and opening up. It is reform that has ensured the rapid growth of China’s economy in the past three decades, and healthy growth of the economy will still hinge on reform. We will deepen market-based reform in all areas. To transform and upgrade China’s economy, we need to open the country wider and engage in more exchanges and cooperation with other countries. In the next five years, China will import 10 trillion dollars worth of goods. China welcomes foreign investment and new managerial expertise and technologies from foreign businesses. We will study the common rules on market access of other countries so as to provide a level playing field and facilitation to all foreign companies operating in China. All companies, whether Chinese or foreign, wholly-funded or joint venture, as long as they are registered in China, are treated as equals. China will take concrete steps to step up IPR protection. To upgrade the economy, it is imperative to protect IPR. Otherwise, foreign companies will be discouraged from making investment and setting up business in China and it will be difficult to keep Chinese companies, entrepreneurs and researchers motivated. IPR protection, which is important for China’s economy, is a strategic decision we have taken.

Ladies and Gentlemen,

In the past 40 plus years since the establishment of diplomatic ties, China-Germany relations, like the Yangtze River and the Rhine, are surging forward despite twists and turns. Our two countries now enjoy ever-stronger mutual trust, and our pragmatic cooperation in all fields is deepening. Both China and Germany are global economies, manufacturers and trading countries. Both the Chinese and the Germans are talented and hard working. Both our countries pursue a free trade policy, have a keen sense of forestalling potential crisis, and are innovation driven. Our interests converge in broad areas; we have a lot to offer each other in cooperation, and there are great prospects for such cooperation. The growing “made in China” and the mature and reliable “made in Germany” products are a perfect match, and we can join hands to explore the third market. Our cooperation in manufacturing, trade in goods, services and trade in services has great potential of growth. The service sector is a major source of job creation. China has reached a stage where it needs a stronger service sector to create more jobs. To make life better for the Chinese people, we need both quality goods and quality services. China and Germany can do a lot together in urbanization, modern logistics, education and training, medical care, etc. We hope Germany will give equal treatment to Chinese companies in market access, visa and work permit.

Germany is an important country in Europe and the EU. So my visit to Germany in a sense is also a visit to Europe and the EU. Europe is an important pole of the world today. China wants to see a united, prosperous and stable Europe and a strong euro. China has always been a firm supporter of European integration and given our due support to Europe in tackling the debt issue. China and Europe have far more common interests than differences. This year marks the tenth anniversary of China-EU comprehensive strategic partnership. China will work with the EU to increase strategic trust and dialogue and cooperation in financial stability, urbanization, energy security and global governance, and properly handle our problems. As outstanding representatives of eastern and western civilizations, China and Europe have the vision and capability to resolve disputes and frictions that may emerge to achieve mutual benefit. We have full confidence in the development of China-EU relations and the ability of Europe to advance the process of European integration and overcome temporary difficulties.

Ladies and Gentlemen,

Yesterday afternoon, Chancellor Merkel and I attended the ceremony of inaugurating the China-Germany Language Year. Language embodies progress of human civilization; it is an important medium that makes communication between people living in a diverse world possible. The Chinese, who value both knowledge and action, have written many great works in Chinese. The Germans, masters of speculative philosophy, have done the same in German. After my visit to the site of the Potsdam Conference yesterday, I met with two old friends whom I first met 23 years ago when I visited Germany. We recalled with great fondness the time we spent together along the river at the Tubingen University talking about Confucius, Lao-Tzu and Hegel. It is still fresh in my mind. To enhance language and people-to-people exchanges between our two countries will cement the foundation of our relations. Gottfried Wilhelm von Leibniz, a German philosopher in the 17th century, was well known for his knowledge on China although he had never been to China. He was immersed in the study of China and saw something in common between the binary system of his invention and hexagrams of the Book of Changes. What he observed shows there is a meeting of minds between our peoples. Many of you here have traveled frequently between our two countries. Many have become China hands or Germany hands through friendly exchanges. We hope to see more China hands and Germany hands who will serve as bridges of minds and cooperation and help open a new and splendid chapter of China-Germany friendly relations and cooperation based on mutual respect and better understanding.

Thank you.