Prime Minister Naoto Kan,

Dear Colleagues,

It gives me great pleasure to join you in Yokohama for discussions on promoting economic development in the Asia-Pacific region.

As a result of the concerted action of the international community, the world economy is slowly recovering. Yet the recovery is neither firmly established nor balanced, and there exist significant uncertainties. The Asia-Pacific region on the whole enjoys good momentum of development and has become the main driving force behind the sustainable recovery and growth of the world economy. At the same time, however, our region also faces some difficulties and challenges. Advanced economies have to cope with serious unemployment problems, while emerging market economies are confronted with asset price bubbles and inflationary pressure. The least developed economies are in serious difficulties. Economic restructuring remains a daunting task for all APEC members. Moreover, protectionism in various forms has risen notably. Many global challenges, such as climate change, food security, energy and resource security, public health security and major natural disasters, have become more pronounced. To safeguard the achievements of economic development, we need to make strenuous efforts.

We need to adapt to the changing global and regional economic situation and scientifically analyze the pressing problems and long-term requirements of world economic growth. It is essential to study the trajectory of economic growth, explore new concept, and transform the growth pattern to resolve difficulties and raise its quality and efficiency. We should work hard to solve the acute problems in economic and social development, address major issues bearing on the immediate interests of the people and strive for sound and fast economic development of the Asia-Pacific region at a higher level. To this end, I propose we focus efforts on the following aspects:

First, promote balanced growth to create conditions for long-term economic development. We should seek both balanced growth of different regions and industries within a member economy and balanced growth among all member economies. We should increase input to help developing members achieve their full potential and narrow the North-South gap. We should move toward more rational division of labor, more balanced financial and trade structure, more efficient allocation of resources and more equitable sharing of benefits. All this will contribute to balanced and coordinated global economic growth.

Second, advocate inclusive growth to boost the internal dynamism of economic development. We should focus on economic development, uphold social equity and justice and adhere to the people-first principle so that all countries, regions and groups can benefit from economic globalization and development. We should follow the guideline of prioritizing human resources development, implement development strategies conducive to full employment, improve the quality and competence of the labor force and speed up the building of a sustainable social security network. The aim is to get people involved in development, protect their interests and enable them to benefit from development.

Third, bolster sustainable growth to strive for long-term economic development. We should emphasize sustainable growth, which includes not only resource and environmental sustainability but also sustainability of fiscal, monetary, trade and industrial policies and the reduction of macroeconomic volatility and risks. We should implement responsible macroeconomic policies and ensure medium- and long-term fiscal sustainability. We should coordinate economic development, social development and environmental protection and move toward low-carbon growth. We should actively address the climate challenge, energetically develop green economy and foster new sources of economic growth. China proposes to hold the first APEC Forestry Ministerial Meeting to advance region-wide cooperation on forestry. We also call for closer cooperation on the APEC Low-Carbon Model Town Project to step up collaboration in conserving energy, reducing emissions and raising energy efficiency. I hope these proposals will have your active participation.

Fourth, encourage innovative growth to provide impetus for economic development. Innovation is a boost, as well as a guide, to development. We should create an enabling environment for innovation by improving the system of technological innovation and increasing input in research and development. This will see a gush of innovative ideas and talents in all areas. We should facilitate the cultivation and movement of innovative and high-skilled people, who can provide strong human capital and scientific and technological support to economic development, and promote a shift toward innovation-driven growth. Developed members of APEC should scale up technology transfer and help developing members build capacity for innovative growth.

Fifth, ensure secure growth to protect the results of economic development. We should work together to deepen exchanges and cooperation on counter-terrorism, disaster prevention and reduction, food security, energy and resources security and public health security. Policy coordination and dialogue, experience sharing and technical assistance on these non-traditional security threats can help create a secure, benign and convenient environment for regional economic and social development and people's livelihood and safeguard the safety and well-being of the people in our region.