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Opening-up policy here to stay: Wen

By Le Tian (China Daily)
Updated: 2007-11-20 07:45

SINGAPORE: Premier Wen Jiabao Monday reiterated that China will not change its opening-up policy and is committed to addressing any problem it gives rise to.


Chinese Premier Wen Jiabao gestures during an address in National University of Singapore November 19, 2007. [Xinhua]

Opening-up is a "basic State policy, not expediency", Wen said while addressing a gathering at the National University of Singapore, and described it as a "long-term and comprehensive policy based on mutual benefit".

"Though the specific measures and means to implement this policy may differ in different stages, the basic policy will not change."

A review of China's history shows "only an open and inclusive nation can become strong and prosperous, while a nation that shuts its door to the world is bound to fall behind", he said, explaining the reason why the country will not change its opening-up policy.

Wen's speech was one of the highlights on the agenda of his visit to Singapore. He will attend the high-level meetings of the Association of Southeast Asian Nations (ASEAN) and East Asian countries today.

China will follow the opening-up policy unswervingly as part of economic globalization and use every possible means to solve the problems arising out of it, the premier said, referring to issues such as trade protectionism and imbalance, and intellectual property rights.

The country will continue to improve its currency exchange rate mechanism, he said. "We will continue following an independent, gradual and controlled approach to improve the yuan exchange rate mechanism, increase its flexibility and gradually make it convertible under the capital account."

China will use foreign capital actively, improve its structure and raise its efficiency, he said. The country already has a legal framework governing the opening-up policy to protect the rights and interests of foreign investors.

According to Ministry of Commerce figures, imports and exports have increased 84-fold from only $20.6 billion in 1978 to $1.76 trillion last year.

China has become the world's third largest trading nation, and its foreign exchange reserves, which never exceeded $1 billion before 1978, crossed $1 trillion last year. It joined the World Trade Organization in 2001, marking a new turn in its opening-up drive.

More than 2,000 political and economic figures, university teachers and students comprised Wen's audience, from whom he took questions after the 30-minute speech.

On environmental protection, Wen said China's efforts are paying off. "Between this January and September, the energy consumption per unit of GDP fell 1.8 percent year-on-year, and pollutant discharges were cut by 0.28 percent. That is a turning point in China's economic development because previously these numbers were on the rise."



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