Dr. Henry Kissinger,

Secretary Gary Locke,

Secretary Ray LaHood,

Ambassador Ron Kirk,

Ambassador Jon Huntsman,

Mr. Muhtar Kent, Chair of the U.S.-China Business Council,

Ambassador Carla Hills, Chair of the National Committee on U.S.-China Relations,

Ladies and gentlemen,

Dear friends,

I wish to begin by thanking the U.S.-China Business Council, the National Committee on U.S.-China Relations and other friendly organizations for hosting this welcome luncheon. I am delighted to have this opportunity to meet friends, old and new, to renew friendship and plan for the future. I would like to extend cordial greetings and best wishes to you and to people from various sectors of the United States who have long cared for and supported the growth of China-U.S. relations.

On this day 74 years ago, President Franklin Roosevelt made his inaugural speech "The Road of Enduring Progress." He called on the American people who were coming out of the depression to unite as one and redouble their efforts to forge ahead along the road of enduring progress. Today, the turbulence caused by the international financial crisis is receding and the world economy is returning to growth. Yet there still exist many uncertainties and destabilizing factors, making the world economic recovery a tortuous process. All countries in the world, including China and the United States, want to fully emerge from the crisis as soon as possible and achieve a full recovery of the world economy. In the face of the complex and fluid international situation and various risks and challenges, the people of our two countries should step up cooperation and work with people across the world to share opportunities, meet challenges and build a better future for mankind.

Ladies and gentlemen,

Thirty-two years ago, Mr. Deng Xiaoping, chief architect of China's reform and opening-up, paid a historic visit to the United States. He said during the visit that the Pacific Ocean should no longer be an obstacle that sets us apart. Rather, it should be a bond that links us together. History has proved the correctness of this important statement.

In the first decade of this century, China and the United States worked together and made steady progress in building a positive, cooperative and comprehensive relationship for the 21st century. China-U.S. relations have reached unprecedented breadth and depth. Given the ever changing circumstances in the world and in our respective countries, what should we do to take a sound and steady China-U.S. relationship into the new decade?

To answer this question, one must, first and foremost, identify the basis for the development of China-U.S. relations. It is fair to say our two countries have never enjoyed such broad common interests and shouldered such important common responsibilities as we do today.

—Both China and the United States are committed to upholding world peace and stability and reforming the international system. China is the largest developing country while the United States the largest developed one. The steady growth of our relations is, in itself, a major contribution to world peace and stability. Our two countries have engaged in coordination and cooperation on a range of regional hotspot issues and maintained close communication and coordination in both the traditional and non-traditional security fields. Together, we pushed for major progress in the international efforts on climate change and non-proliferation, and facilitated positive outcomes at the G20 summits and other meetings. We have joined the rest of the international community in a common effort to safeguard overall stability in the international order and advance the reform and development of the international system.

—Both China and the United States are committed to the development and prosperity of the Asia-Pacific region. The Asia-Pacific region is where China and the United States have the most overlapping interests. Cooperation between our two countries in the region is crucial to the regional situation and the growth of our bilateral relations. China and the United States have maintained close communication and coordination on regional hotspot issues such as the Korean nuclear issue, Afghanistan and South Asia and played a constructive role in promoting peace, development, good-neighborliness, mutual trust and mutually beneficial cooperation in the region.

—Both China and the United States are committed to stronger bilateral cooperation in all fields to the benefit of the two peoples. The United States is China's second largest export market and main source of investment. China is the United States' third largest export market and also the fastest growing one. Preliminary statistics show that, over the past 10 years, quality yet inexpensive Chinese products have saved American consumers over $600 billion. For many American companies, their businesses in China have become the biggest source of profits in their global operations. Even in 2008 and 2009 when the international financial crisis was most severe, over 70 percent of American companies in China remained profitable. Today, some 3 million tourists travel between the two countries every year. The friendly exchanges between the Chinese and American people have contributed not only to their own cultural progress, but also to the exchanges and mutual learning between the Eastern and the Western civilizations. And they have given a strong boost to the overall progress of human civilization.

Looking ahead, we are fully confident about the prospects of China-U.S. relations. Here I would like to propose that we take the following steps to advance the sound and steady growth of our relations.

First, bear in mind the overall interests, take a long-term perspective and make active efforts to advance China-U.S. cooperative partnership. The China-U.S. relationship is not one in which one side's gain means the other side's loss. Rather, it should be a relationship in which the two sides respect each other and endeavor to deepen strategic mutual trust. It should be a relationship that highlights common interests and stronger cooperation in all fields. The two sides should view and handle the bilateral relations from a global perspective and in keeping with the trend of the times. We should keep our relations on the path of equality, mutual respect, mutual trust, mutual benefit and common development. And to do that, we should increase high-level exchanges, deepen and expand communication at all levels, better appreciate each other's strategic intentions and development paths, and further increase mutual trust, dispel misgivings and build consensus.