Domestically, we need to rely mainly on our own effort in pursuing development. We should promote development by expanding the domestic demand to meet the people's growing material and cultural needs. China is the most populous country with a vast territory, relatively rich resources and a market of huge potential. All this has made it possible for China to achieve development mainly through its own efforts. In the course of development, China is bound to encounter bottleneck constraints in areas such as natural resources, energy and the environment. But thanks to years of hard work, we have succeeded in embarking on a path leading to all-round, coordinated and sustainable development. Our goal is to foster and implement a scientific thinking on development and build a resource-conserving and environment-friendly society. At the same time, we must give a strong impetus to the modernization drive by continuing to deepen our reform, opening wider to the outside world and removing institutional obstacles to development. It is important that we send a clear message to the world that China will achieve its development mainly through its own efforts, and this will help fundamentally remove misgivings in the international community that China is bound to engage in external plundering and expansion when it reaches a certain stage of development. As China develops itself, it will make greater contribution to both the development of its neighborhood areas and that of the whole world.

Internationally, we should advocate peace, development and cooperation and pursue an independent foreign policy of peace. China works to uphold its independence, sovereignty, unity and territorial integrity, makes judgment independently on the merit of each international issue and takes position accordingly. It does not use ideology and social system as a criterion in conducting diplomacy, nor does it impose its values on others. China does not enter into alliance with any country or country group. It does not interfere in other countries' internal affairs, nor does it allow others to interfere in its internal affairs. China opposes hegemonism and power politics and will never seek hegemony. In conducting foreign exchanges, we should fully implement the independent foreign policy of peace. This means we should live in friendship with all other countries on the basis of the Five Principles of Peaceful Coexistence, and treat all countries, whether big or small, rich or poor, strong or weak, as equals. It means we should work for a just and equitable international political and economic order which is based on equality, respect and mutual benefit and whose ultimate goal is to build a harmonious world. It means we should follow the principle of mutual benefit and mutual respect in expanding overseas business ties and conducting cultural exchanges. And it means we should follow a defense policy that is defensive in nature and do not engage in arms race or military expansion. Since it suffered bitterly from imperialist aggression and oppression for more than a century after the Opium War (1840-1842), China knows just too well what foreign aggression and oppression will bring to a nation. We are sincere and firm in our commitment to taking a path of peaceful development.

To take a path of peaceful development is a strategy and foreign policy to which China is committed. It is definitely not an expediency. In following this guiding principle, we should seize opportunities, remain unswayed by provocations and concentrate on our development, and we will not seek a leadership role in the international arena. It is thanks to following this policy that we have been able to gain more room for the conduct of China's diplomacy. As China's overall national strength and international standing grow, the international community will have higher expectation on China. One might ask if it is still necessary for China to follow this policy. The answer is yes, as there is no reason whatsoever to change it. Of course, we should remain actively engaged in international affairs. China is a permanent member of the UN Security Council and a member in other important international organizations. We should make full use of this favorable condition to uphold China's fundamental interests. We should take an active part in the formulation of international rules to work for a fair and equitable international political and economic order. We should be actively involved in economic globalization and promote international and regional economic cooperation to achieve mutual benefit and win-win progress.

IV. Cultural Development and Exchanges

If China is to gain respect of the international community, we must grow our economy, advance science and technology and ensure that our people live a prosperous and happy life. We must also raise the educational level of our people, improve democracy and legal system and raise cultural and ethical standard. In recent years, at the same time of speeding up economic development, we have endeavored to promote political and cultural development and the building of a harmonious society, and we have given high priority to cultural exchanges with other countries. We have thus fostered an image of China as a country that is committed to reform and opening-up, a country of unity and dynamism, a country that upholds equality and values friendship, and a country that is sincere and responsible. As a result, China is increasingly viewed in an objective, rational and friendly light, and there is growing call for strengthening cooperation with China. All this has created a favorable external environment for China's modernization program. Therefore, we should enhance cultural development and exchanges and view it as a key endeavor in building socialism with Chinese characteristics in all respects.