President Lula da Silva,

Dear Colleagues,

It gives me great pleasure to join you again in the beautiful city of Brasilia. Let me begin by expressing sincere thanks to President Lula and the Brazilian Government for the thoughtful arrangements they have made for this meeting.

When we met in Yekaterinburg last June, the world economy was in the quagmire of the international financial crisis. Major economies ran into recession, and the work and life of people around the world were seriously affected. In the face of a gloomy economic picture, the four BRIC countries came together and sent a strong message that we would work for the early recovery of the world economy. Through hard efforts, we became the first to achieve an economic turnaround. And thanks to the concerted efforts of the international community, the world economy has shown signs of recovery and is expected to gradually emerge from the financial crisis.

At the same time, we must realize that the world economic recovery is not yet firmly established or balanced, and there are still many uncertainties down the road. We have seen recently the rise of sovereign debt risks in some countries, fluctuations in international financial markets, surging protectionism of various forms and grave employment situation in some parts of the world. Global challenges such as climate change, food security, energy and resource security, public health security and major natural disasters are intertwined, and the deep-seated problems in world economic governance structure are yet to be addressed. In short, there is still a long way to go before the world economy can achieve sustainable growth.

Dear Colleagues,

Over the past year, we have broadened the scope and increased the levels of dialogue and cooperation among our four countries, and our efforts have produced fruitful results. Our four countries differ in political system, development model, religious belief and cultural tradition, but we have become good friends and partners. This shows that countries with different social systems can be inclusive toward each other and countries with different development models can engage in cooperation. It also shows that different civilizations can learn from each other and different cultures can have exchanges. Our endeavor is in keeping with the trend towards peace and development and answers the call of our time for cooperation and mutual benefit.

"BRIC" cooperation now faces both valuable opportunities and severe challenges. We should set clear objectives for cooperation among the four countries and advance the BRIC cooperation process from a strategic height. We should base our cooperation on political mutual trust, and treat each other with sincerity, mutual respect, mutual understanding and mutual support. We should focus on practical cooperation and make our cooperation more dynamic through concrete actions. We should strengthen institutional building to support increased cooperation in broader areas. We should aim for mutual benefit by combining our respective strengths and sharing the fruits of cooperation to the fullest extent. We should view openness and transparency as the prerequisite of our cooperation and strengthen communication and exchanges to make our cooperation an open process.

Dear Colleagues,

The international situation is now very complex, and the global pattern is undergoing profound readjustment. No matter how the international situation may evolve and what changes the international system may experience, we should remain firmly committed to the goal of mutual benefit, the principle of democracy and equity, the approach of mutual respect and the spirit of solidarity and cooperation.

We should encourage all parties to firm up the foundation of the world economic recovery and strengthen macroeconomic policy coordination. The international community coordinated the "entry" strategy in response to the financial crisis, and we must also act in coordination with respect to the "exit" strategy and maintain the continuity and stability of macroeconomic policies.

We should encourage all parties to address imbalances in the global economic governance structure. It is important to achieve on schedule the quantified reform targets of international financial institutions set by the G20 Pittsburgh Summit and increase the representation and voice of emerging markets and developing countries.

We should encourage all parties to continue to promote trade liberalization and facilitation, properly handle trade disputes and reject protectionism. The main parties to the Doha Round negotiations should demonstrate sincerity and flexibility to reach comprehensive and balanced outcomes at an early date and facilitate the establishment of an open and mutually-beneficial multilateral trade regime.

We should encourage all parties to improve the international financial supervisory and regulatory regime by expanding its scope, specifying responsibilities, adopting universally accepted standards and norms and strengthening mechanisms. There should be supervision over the macroeconomic policies of major reserve currency issuing economies and over sovereign credit rating agencies.

We should encourage all parties to embrace a stronger sense of responsibility and morality and work for balanced global development. It is important to scale up input in development and ensure development resources and at the same time respect each other's development model chosen in the light of national conditions and policy space. In September, the UN will hold the High-level Meeting on the Millennium Development Goals. We need to urge the international community, particularly developed countries, to honor commitments in increased assistance, debt relief, market access and technology transfer and help developing countries promote economic growth, improve people's well-being and meet the Millennium Development Goals.

To maintain and advance dialogue and cooperation among BRIC countries, China would like to host the third BRIC Summit.

Dear Colleagues,

China has scored notable achievements over the past 30-odd years since reform and opening-up. Now many people are interested to know what kind of a country China is likely to be in the future. What will it say and what will it do? How is it going to treat old friends and how is it going to treat new friends? Let me share with you, in this connection, the following observations.