Dr. Niblett,

Ladies and gentlemen,

Let me begin by thanking Dr. Niblett for his kind words. Chatham House is a prestigious institute well-known for its rigorous scholarship and inclusiveness. You have here many eminent scholars and research fellows, whose keen insight in international affairs is most impressive. I am delighted to have the opportunity to come here and exchange views with you.

This is my first official visit to the United Kingdom and to Europe as China's Foreign Minister. But the UK and Europe are not new to me. I first came to the UK as a student more than 30 years ago. Time flies. Looking back at these 30 odd years, we cannot but marvel at the profound changes that have taken place in the world, China and Europe included. Relations between China and Europe have also come a long way. China's achievements in reform and opening-up, in particular, have attracted global attention. I have friends overseas who have asked me time and again: Given China's fast growth, what direction will you follow in foreign policy? What does China's development mean for the rest of the world?

Today, I want to focus on the main themes of China's foreign policy and the implications of China's development for its relations with Europe.

Ladies and gentlemen,

The world today is undergoing major changes and readjustments. With deepening economic globalization and regional integration, countries are becoming increasingly interdependent and their interests are more closely intertwined. To pursue peace, development and cooperation constitute an irresistible trend of the times. However, the world is far from tranquil. Local conflicts and hotspot issues flare up one after another. Global economic imbalance is aggravating. North-South gap is widening. And non-traditional security threats have emerged on top of traditional security threats. How can we effectively confront challenges under the new international situation and better safeguard world peace and promote common development? This is a serious question that all of us have to address.

As you may know, the Communist Party of China held its 17th National Congress not long ago. This was an important meeting held at a time when China's reform and development have entered a crucial phase. In terms of foreign affairs, the meeting made a review of China's diplomacy for the past five years and set out future foreign policy objectives in light of the new international situation. There are three main messages coming out of the congress, namely, peaceful development, win-win opening-up, and building a harmonious world. I will address each of these.

First, China will unswervingly pursue the path of peaceful development. This is our strategic choice and its essence is that we seek to develop ourselves in a peaceful international environment and contribute to the cause of world peace through our own development. It is a choice consistent with the peace-loving tradition of the Chinese nation and the need for building socialism with distinctive Chinese features. As an integral part of China's independent foreign policy of peace, it not only serves the fundamental interests of the Chinese people but also conforms to the trend of human progress.

Some people have some misgivings about the development of China. Their argument is that the rise of major powers in the past has never been peaceful. These misgivings, in my view, are unfounded. In an era of globalization and interdependence, China cannot develop itself in isolation from the world and the development of the world cannot be realized without China. Countries can only achieve sustained development in an environment of enduring peace and fully share the benefit of peace through common development.

China's peaceful development is conducive to the fundamental interests of the Chinese people as well as the common interests of people of other countries, and China's foreign policy objectives are consistent with the call for progress of people of the whole world. We stand for cooperation as the way to resolve disputes and achieve peace and development. In short, we are committed to peaceful, open and harmonious development.

Second, China will unswervingly follow a win-win strategy of opening-up. Reform and opening-up have transformed China from a closed or semi-closed society to one that fully embraces the world. A multi-faceted and multi-tiered opening-up pattern has taken shape in China. Our interactions with other countries in the political, economic, cultural, security and other fields have never been as extensive and close as they are today.

To achieve development in China, a big developing country with a population of 1.3 billion, we have to rely mainly on our own effort. But we also have to get actively involved in international economic and trade cooperation and learn from the experience of other countries. Reform and opening-up have not only benefited the Chinese people, but also contributed significantly to world economic growth and the cause of progress of mankind. China is now a major engine driving the economic growth of Asia and beyond. In the past three decades, China's imports have been growing by an average annual rate of 15 percent, making China the third largest importer in the world and the biggest one in Asia. China's exports have also brought benefits to consumers around the world. The size of China's market and overseas investment will get bigger as the country continues to develop, enabling China to make even greater contribution to stability and prosperity of the world economy.

China's opening-up is comprehensive and mutually beneficial. China does not pursue opening-up at the expense of the interests of other countries. Instead, our opening-up is based on mutual benefit, mutual complementarity and mutual assistance. While seeking its own development, China will make efforts to accommodate the legitimate concerns of other countries. We will properly manage economic and trade frictions with other countries, increase market access, optimize foreign trade structure and ease trade imbalances in accordance with international trade rules. We will be more actively engaged in economic globalization and international economic and technological cooperation and competition.

Third, China will remain firmly committed to building a harmonious world of enduring peace and common prosperity. The concept of building a harmonious world is deeply rooted in China's cultural tradition. It gives full expression to our desire for peace, our commitment to be a responsible member of the international community, and our willingness to work with other countries to achieve peace and prosperity. It also serves our cause of peaceful development.

China observes the following principles in developing relations with other countries: Politically, all countries should respect each other, settle differences through consultations on an equal footing and live together in amity. The right of all countries to choose their own social system and development path should be respected. All countries have the right to equal participation in international affairs and should work together to promote democracy in international relations. Economically, we should cooperate with each other, draw on each other's strengths and make joint efforts to ensure balanced progress of economic globalization so that it can benefit all. Culturally, we should learn from each other, expand common ground while shelving differences, respect diversity, and advance the progress of human civilization through a common endeavor. In the area of security, we should build mutual trust, strengthen cooperation, settle international disputes by peaceful means, and work together to safeguard world peace and stability. On environmental issues, we should help and cooperate with each other and take good care of the Earth, the only home of mankind.

A harmonious world is a long-term goal that requires persistent and painstaking efforts. It will be a process in which countries work together to meet challenges, build consensus and expand common interests. It will also be a process in which different civilizations and cultures interact with one another, draw upon one another's strengths and achieve common development and prosperity.

Ladies and gentlemen,

Reform and opening-up have brought about historic changes in the relations between China and the rest of the world and ever closer interconnection between China's future and destiny and those of Europe and the world.