6. Encouraging business participation and expanding channels of cooperation. As the importance of small and medium enterprises (SMEs) in Asian and European economies is increasing, there is a growing call for more government support. We ASEM members should enhance inter-governmental cooperation and give key support to SMEs in international exchanges. We should bring into play the role of non-governmental institutions and encourage the Asia-Europe Business Forum (AEBF) to serve as a bridge for SME cooperation. We should provide better public services to SMEs and expand channels of consultation and cooperation between governments and the business community. China proposes to host the ASEM Small and Medium Enterprises Ministerial Meeting and Trade and Investment Fair in 2007.

7. Addressing non-traditional security issues and effectively preventing and controlling avian influenza. Communicable diseases and other non-traditional security threats greatly undermine the economic and social development of all countries. We ASEM members should take part in extensive international cooperation, promote the building of a global communicable diseases surveillance and early-warning system and further enhance the international community's capacity in early-warning and emergency response. We should also support the initiatives taken by the United Nations and the World Health Organization, strengthen policy coordination and provide greater financial and technical support for developing countries. China proposes to host the ASEM Workshop on Avian Influenza Control next year to further promote Asia-Europe cooperation in this field.

8. Narrowing the urban-rural gap to realize balanced economic development. Underdevelopment in rural areas is a problem in quite a number of Asian and European countries. We ASEM members should formulate comprehensive strategies for rural development in light of our national conditions to meet targets set for the Millennium Development Goals. Developed countries should adopt measures more favorable to developing countries in agricultural trade policies. We should draw upon each other's successful experience and devise new modalities of cooperation through exchanges on food security and poverty reduction. China also proposes to host the ASEM Forum on Rural Development at an appropriate time to share experience in achieving coordinated development between urban and rural areas.

Mr. Chairman,

China attaches great importance to and has taken an active part in the process of Asia-Europe cooperation. Over the past 10 years, China has carried out many follow-up activities in counter-terrorism, the judicial sector, economy and trade, finance, science and technology, customs, environment and cultural exchanges. We have actively promoted multilateral cooperation, economic exchanges and dialogue between different cultures and civilizations. In 2008, China will host the Seventh ASEM Summit, and we are ready to make greater contribution to peace, cooperation and development of Asia and Europe.

China firmly pursues an independent foreign policy of peace and strictly adheres to the purposes of the UN Charter and universally recognized norms of international relations. We are committed to pursuing peace, cooperation and development. China's development of relations with other countries is not based on consideration of ideology or social system, and differences in the modes of development do not affect our cooperation. We are guided by the principle of mutual respect and equality in developing relations with other countries, and we endeavor to develop friendly relations and cooperation with all the other countries on the basis of the Five Principles of Peaceful Co-Existence.

China is committed to making the international political and economic order fairer and more equitable. We honor in good faith our international obligations and are assuming greater responsibility in the United Nations, the WTO and other multilateral institutions. China handles international issues in a responsible way. China has mediated in the