Yesterday, I was deeply moved when I saw on television Mr. Mandelson drinking a glass of Chinese milk to show his confidence in Chinese products. Because he saw not only the immediate present but also the future to come. We discovered the problem and we did not cover it up. We looked at it squarely and honestly and took courageous move to resolve the issue. We will not let the entrepreneurs here disappointed and we will not let the Chinese people as well as the people of the world disappointed.

Q: China achieved phenomenal success in economic development. I would like to know, when China will be able to improve the export to a new level and through what means? When can China export its own brand of merchandise and make greater progress in terms of quality and innovation?

A: China’s export grew rapidly, but as you say, we do not have our own brands, in particular our own intellectual property rights. The current competition in the world boils down to the competition on intellectual property rights. I believe that the Chinese people are still smart. As long as our policies are on the right track, so long as we create a free and fair competition environment, and so long as we bring the wisdom of the people into play, the quality of our export products will improve and our own brands and intellectual property rights will increase, but this is an arduous process.

Q: In which areas can China take effective measures to ensure stable and rapid economic development?

A: China has good conditions to maintain stable and rapid economic development. First, China has a big domestic market. In a volatile world economy, we still have a lot of room for maneuver. Second, we must base our economic development on the expansion of domestic demand, especially consumption demand. We have sufficient capitals. The savings of the entire society stood at 46 trillion yuan, among which household savings exceeded 16 trillion yuan. Third, we have rich and constantly-improving human resources. Therefore I have the confidence in the sustained development of China.

Q: The recent financial and economic problems brought about a series of other problems. We need the joint efforts of the international community as a whole. We need a strong global leadership role to deal with challenges facing the international community and mankind. The role of the United States is weakening. Will China come on the stage and take on the role of global leadership? Has China already prepared for that?

A: Realistically speaking, it’s beyond our abilities. China’s economy has been growing in a steady and rapid manner for 30 years. To maintain stable and rapid development for the coming 20 years, we need to make greater efforts. First, a developing country like China must avoid big periodical fluctuations. Second, to make our development a comprehensive, coordinated, and sustainable process, we need to deal with climate change, save resources, and protect the environment. Third, the key is the people, their wisdom and their talent. To be a leader, catch up with or walk ahead of other countries, the Chinese people must brave innovation in institutions, sciences, technologies, enterprises, and products. Without innovation, nothing will sustain.

Q: You just mentioned that China hopes to adopt various measures to stabilize domestic economic growth. To achieve this, you spoke of the need to sincerely cooperate with each other. In addition to such cooperation, I think China should take the initiative to ensure stable and rapid economic development. What measures will China take the initiative to take?

A: You ask which initiatives we should take. That is a question concerning our policy orientation. I think that it can be summed up in two words, “prudent and flexible.” This is our macro-policy orientation. At this time, it is necessary to keep a close eye on the trend of global economic development and adopt flexible and prudent macroeconomic policies based on the actual situation in China. In fact, careful people can see that China is acting.

(Source: www.fmprc.gov.cn)