Dear colleagues,

Today, leaders of ASEM partners have gathered in Beijing to explore ways for win-win progress through dialogue and cooperation between Asia and Europe. I wish to extend, on behalf of the Chinese Government, warm welcome and sincere greetings to you all.

The spread of worsening international financial crisis has seriously affected world economic growth and stability. Global issues such as energy, food, the environment, natural disasters and poverty have become more pronounced and intertwined. Mankind is facing severe challenges in the pursuit of development. The theme of the meeting-Vision and Action: Towards a Win-Win Solution-is highly relevant, as it shows the strong political commitment of ASEM partners to closer cooperation and common development. We will focus our discussions on how to address the international financial crisis and exchange views on international and regional developments, food security, cooperation on disaster relief, sustainable development and dialogue among civilizations in a candid, pragmatic and in-depth manner. We will build consensus, work in a pioneering spirit, and make contribution to ASEM cooperation, world harmony and sustainable development.

The ongoing financial crisis is rarely seen in history. Countries and organizations concerned have taken measures in response, and we hope these measures will produce the desired results soon. To comprehensively resolve and overcome the crisis calls for concerted efforts and global action. Countries in Asia and Europe are an important force for international financial stability and world economic growth. We must work together and show confidence, solidarity and cooperation to the world. I suggest that we make greater efforts in the following aspects:

First, countries should, first and foremost, run their own affairs well. In the face of the crisis, it is important for leaders to act in the fundamental and long-term interests of the people, make decisions in a firm, resolute, responsible and timely manner and use necessary fiscal, monetary and regulatory tools to restore market confidence as soon as possible and maintain economic growth. It is also important to offer proper guidance to public opinion and maintain social stability.

Second, step up coordination and collaboration among governments. The financial departments, central banks and financial regulators around the world should closely follow the development of the crisis and study its trend and impact, enhance information sharing, take effective measures on macroeconomic policy coordination and international financial regulation and increase capacity for jointly fending off financial risks.

Third, intensify regional financial dialogue and cooperation. Members of the Eurozone have reached agreement on the basic principles to tackle the financial crisis. We in Asia are also exploring the possibility of expanding the size of bilateral currency swap arrangements under the 10+3 framework and working to put in place a regional foreign exchange reserves pool at an earlier date. Building on this, Asia and Europe should bring into play their respective advantages and make full use of the existing mechanisms to advance inter-regional financial cooperation on a broader scale.

Fourth, push forward the reform of the international monetary and financial systems. The present crisis has laid bare the weaknesses in the existing international financial system and governance structure. The international community is calling for accelerated reform and the establishment of a fair, just and effective international financial system. I deem it important to do three things in this regard: first, increase the say and representation of developing countries in international financial organizations; second, expand the scope of the regulation of the international financial system, with particular emphasis on strengthening the supervision of the major reserve currency countries; and third, establish a reasonable global financial rescue mechanism.