Dr. Kissinger,

National Security Advisor Mr. Stephen Hadley,

Mr. Joseph Gildenhorn,

Mr. David Metzner,

Ambassador Stapleton Roy,

Ambassador Zhou Wenzhong,

Ambassador Wang Guangya,

President Yang Wenchang,

Ladies and gentlemen,

It's nice to be back in Washington and to join you at this luncheon marking the inauguration of the "Kissinger Institute on China and the United States" at the invitation of the Wilson Center. Let me first of all extend warm congratulations on the inauguration of the Kissinger Institute. I want to thank the Wilson Center and all of you present for your contribution to China-US relations. Over the past several decades, Dr. Kissinger, as a strategist, has devoted his energy and wisdom to advancing China-US relations. It is most fitting that the Institute on China and the United States is named after Dr. Kissinger and headed by Ambassador Roy.

Academic exchanges provide a strong impetus to China-US relations. I am glad to know that the Institute will establish an advisory board of about 20 Chinese and U.S. dignitaries, to be co-chaired by Dr. Kissinger and Mr. Xu Kuangdi, President of the China-US People's Friendship Association and President of the Chinese Academy of Engineering. In addition, the Chinese People's Institute of Foreign Affairs (CPIFA) and the Kissinger Institute will also conduct academic exchanges and cooperation with each other. Today, I am happy to see Ambassador Yang Wenchang, President of the CPIFA, leading a delegation to the United States for the inauguration ceremony. I hope, and I believe, that the Kissinger Institute will actively engage in exchanges with Chinese scholars for broad and in-depth academic studies, and contribute its share to the constructive and cooperative China-US relations.

Ladies and gentlemen,

This year marks the 30th anniversary of China's reform and opening-up program. It is a good time for us to review and sum up experience. Over the past 30 years, especially since the beginning of the new century, reform and opening-up on all fronts have brought about historic changes in China. We have completed the transition from a planned economy to a vibrant socialist market economy, and from a closed or semi-closed society to one that is fully open to the outside world. The Chinese economy has enjoyed fast growth, with the country's GDP now ranking the fourth in the world. The livelihood of the people has been improving, as evidenced by the nearly six-fold increase in per capita income and the reduction of the poor population by over 200 million. Major progress has been made in advancing democracy and the rule of law. Altogether, the National People's Congress has enacted 229 pieces of legislation and the State Council has formulated nearly 700 rules and regulations. The Chinese people now have more choices in their cultural life and way of living. Instead of just seeking enough food and clothing for survival, they now aspire for a more fulfilling and prosperous life.

Over the past 30 years, historic changes have taken place in the relations between China and the world. China is now more closely linked with the rest of the world. In 1978, China accounted for less than 1 percent of global trade, while in 2007, the figure jumped to about 8 percent, with an average annual import growth of 16.7 percent. China has grown into the third largest import market in the world and the largest in Asia. It has created about 10 million jobs in relevant countries and regions since 2001, and is contributing more than 10 percent to the world economic growth and over 12 percent to the world trade growth. All this has made the Chinese economy a major part of the world economy.