We should draw serious lessons from the financial crisis and properly handle three relationships. First, the relationship between financial innovation and regulation. We should advance financial innovation in a steady manner according to needs and possibilities and at the same time strengthen financial regulation. Second, the relationship between virtual and real economy. We should always place importance on the development of real economy and put the economy on a solid and reliable basis. In addition, we should coordinate virtual economy with real economy and enable the former to better serve the latter. Third, the relationship between savings and consumption. We should see to it that consumption and savings are well-coordinated.

At present, the fundamentals of the Chinese economy are sound. China has maintained a GDP growth rate of 9.9 percent in the first three quarters of the year. The international financial crisis has some impact on China's financial sector and the Chinese economy, but the impact is limited and can be managed. The Chinese Government will follow a flexible and prudent macroeconomic policy to resolutely maintain economic and financial stability and the stability of the capital market and ensure steady and relatively fast economic growth. I am confident that we will achieve our goals. This will be China's most significant and effective response to the crisis and also our biggest contribution to the world.

Dear colleagues,

In the era of growing globalization, countries are becoming more and more interdependent. This is especially true with Asian and European countries, which share one continent. We should stick to the right approach of dialogue and cooperation for win-win progress and make ASEM more effective, pragmatic and open so as to bring benefits to the people and lift Asia-Europe cooperation to a new height.

--Strengthen political dialogue and maintain peace and stability in Asia and Europe. There can be no durable development and prosperity without peace. We should keep to the purposes and principles of the Charter of the United Nations, resolve differences and disputes through dialogue and consultation, advance multilateralism, promote democracy, harmony, coordination and win-win progress and work for the building of a harmonious world.

--Deepen business cooperation and promote economic growth. Economic development constitutes an important basis for the resolution of global issues. Given the current financial crisis, it is of particular importance to prevent trade and investment protectionism. We should strengthen trade and investment cooperation between countries in Asia and Europe, implement the ASEM Trade Facilitation Action Plan and Investment Promotion Action Plan, intensify consultation and coordination and work for early progress in the Doha Round negotiations. To further promote trade between Asia and Europe, China proposes that we explore the possibility of establishing a multilateral cooperation mechanism for ASEM trade security and facilitation to create enabling conditions for trade growth between the two regions.

--Put people first and pursue sustainable development. We should actively promote international development cooperation, redouble efforts in poverty reduction, provide more assistance to developing countries within our regions and strive for the achievement of the United Nations Millennium Development Goals on schedule. We should adhere to the principle of "common but differentiated responsibilities," carry out international cooperation on climate change in keeping with the UN Framework Convention on Climate Change and its Kyoto Protocol, and implement the "Bali Roadmap." We should strengthen technological cooperation to improve energy efficiency and conserve energy. We should promote social harmony by upholding justice and equity and ensure that the benefits of development are shared by all the people. In order to achieve sustainable development of Asian and European cities, China proposes the establishment of an ASEM Eco-City Network to facilitate exchange of experience and promote the concept of conservation culture.