Prime Minister Stephen Harper,

Dear Colleagues,

It gives me great pleasure to attend the fourth G20 Summit in Toronto and discuss with you the important subject of promoting full recovery of the world economy. Let me begin by thanking Prime Minister Harper and the Canadian Government for their active efforts and thoughtful arrangements for this meeting. I also wish to take this opportunity to express thanks to all of you for giving valuable support and assistance to Expo 2010 Shanghai.

With the concerted efforts of G20 members and the entire international community, the world economy is gradually recovering. But the recovery is neither firmly established nor balanced and there are still quite many uncertainties down the road. Sovereign debt risks continue to rise in some countries. A host of problems have been exposed in some systemically-important financial institutions. Exchange rates of major currencies fluctuate drastically and international financial markets suffer from persistent volatility. Commodity prices hover at a high level and protectionism of various forms is notably growing. All this shows that the deeper impact of the international financial crisis is yet to be overcome and systemic and structural risks in the world economy remain very serious. We must fully recognize the gravity and complexity of the deep impact of the international financial crisis and continue to work in a spirit of unity and win-win progress.

The Framework for Strong, Sustainable and Balanced Growth launched at the Pittsburgh Summit is of great importance to the long-term healthy growth of the world economy. I wish to offer the following proposals concerning the efforts required for bringing about strong, sustainable and balanced world economic growth at an early date.

First, we need to turn the G20 from an effective mechanism to counter the international financial crisis to a premier platform for advancing international economic cooperation. The complex world economic situation makes it necessary for the G20 to play a guiding role. We need to take a longer-term perspective and shift the focus of the G20 from coordinating stimulus measures to coordinating growth, from addressing short-term contingencies to promoting long-term governance and from passive response to proactive planning. We should strengthen coordination of macroeconomic policies among G20 members, keep the right intensity of our policies and support countries hit by the sovereign debt crisis in overcoming the current difficulties. We must act in a cautious and appropriate way concerning the timing, pace and intensity of an exit from the economic stimulus packages and consolidate the momentum of recovery of the world economy. We must follow through on the decisions and consensus of the previous G20 summits and uphold together the credibility and effectiveness of the G20. We must advance the G20's institutional-building under the principle of seeking gradual progress and win-win outcomes, and properly handle various problems and differences in order to ensure the sound development of the G20 summit mechanism. We need to well manage the G20's relationship with other international organizations and multilateral mechanisms and ensure that the G20 plays a core role in promoting international economic cooperation and global economic governance.

Second, we need to accelerate the establishment of a new international financial order that is fair, equitable, inclusive and well-managed. We must learn the hard lessons of the international financial crisis, take effective measures to address the root causes of the crisis, and push forward reform to ensure that the future international financial supervisory and regulatory regime is easy to operate and highly accountable. It is important to establish an international financial system that is good for the growth of the real economy. We need to establish and enforce strict capital and leverage ratio requirements, bring the shadow banking system under supervision and regulation and formulate globally consistent accounting rules. We need to make greater efforts to strengthen supervision and regulation of systemically-important financial institutions and take necessary precautionary measures to forestall excessive risks and speculation. We need to stress the consistency of core principles and standards of international supervision and regulation and, at the same time, take into full consideration the differences between financial markets of individual countries to make financial supervision and regulation more focused and effective. We need to strengthen regulation of credit rating agencies, reduce dependence on these agencies and improve their code of conduct and accountability system. It is particularly important to establish objective, fair, reasonable and uniform methodologies and standards for sovereign credit rating so that the rating results can accurately reflect the state of a country's economy and credit worthiness. We need to continue to push forward the reform of international financial institutions, complete the adjustment of IMF quotas at a faster pace, enable more people from emerging markets and developing countries to assume senior management posts at international financial institutions, and increase the representation and voice of developing countries. We need to enhance the IMF's capacity-building and surveillance reform, and we need to strengthen supervision over macroeconomic policies of various parties, particularly major reserve currency issuing economies.

Third, we need to advance the building of an open and free global trading regime. We must take concrete actions to reject all forms of protectionism, and unequivocally advocate and support free trade. We must renew our commitment not to impose new restrictions on goods, investment and services, and earnestly follow through on this commitment. Developed countries should promote international trade with greater openness. It is important to address trade frictions appropriately through dialogue and consultation and under the principle of mutual benefit and common development. We should work for comprehensive and balanced outcomes from the Doha round negotiations and attain the goals of this development round at an early date. And we should do so by upholding the Doha mandate, locking up the existing achievements, and working on the basis of the existing negotiating text.

Dear Colleagues,

We must recognize that "strong, sustainable and balanced growth" is an integral concept. To ensure strong growth is the top priority in today's world economic development; to enable sustainable growth is our long-term objective; and to achieve balanced growth through the transformation of the economic development pattern is necessitated by the calling of our times. We need to take proactive steps to ensure strong growth, make great efforts to develop the real economy, create jobs for the people and step up international cooperation in emerging industries. We should overcome difficulties in the course of progress and tackle challenges through growth. We should value sustainable growth, which includes sustainability of the environment as well as sustainability of fiscal, monetary, trade and industrial policies, and reduce macroeconomic fluctuations and risks. We should strive for balanced growth, including balanced growth both among different parts and industries of a country and among different countries and regions. It will take a long and complex process to achieve strong, sustainable and balanced growth of the world economy. It cannot be done overnight. We must make persistent efforts to push forward this process. And in doing so, we must also take into account specific circumstances of individual countries and respect their diverse development paths and models.