【正确答案】Ladies and gentlemen, Good morning! We are delighted to have Premier Wen Jiabao with us today and he is here to meet the journalists from the news media both home and abroad and answer your questions. Now Premier Wen will make a few opening remarks.
Dear friends from the news media, Good morning! This year the two sessions was held at a very crucial time of the international financial crisis. The NPC has approved the Report on the Work of the Government and endorsed the government's package plan to tackle the international financial crisis. In this context, I can not set my mind at ease and I recall back on the 24th of September in New York, I said the following lines: Confidence is more important than gold and money. At that time, the world was still at a loss and we were not so sure or clear about the future development of the international financial crisis. Now less than half a year has past, we have already proposed and introduced a package plan to tackle the impact of the international financial crisis. To attain our goal in this plan, I think, first and foremost, we need to have very strong confidence. Only when we have strong confidence, can we have more courage and strength. And only when we have the courage and strength, can we overcome the difficulties. I hope that today's press conference can be turned into one that would boost the confidence and spread the confidence the world over. l think this is the conscience and responsibility that every journalist should have here. This is also the expectation of the people far and wide. Do not regret that the spring is departing, come next year as it will be twice as enchanting. I very much hope to see that next year in China and in the whole world people will be better off. Thank you!
Thank you Premier, I am from China Daily and its website. Just you have introduced a 4 trillion RMB strong stimulus package to tackle the impact of international financial crisis. We have noted that in this report you have introduced the plan but you have not introduced a new stimulus package as expected by people outside the government. I would like to know whether this means that the first stimulus package has been working quite well. Or in the future, is there possibility for the government to introduce new stimulus package? And in this package 4 trillion RMB will be made as an investment by the government, only 1.18 trillion RMB will come from the central government. How can you ensure the source of the money for this plan? And among the 4 trillion RMB, how much of the money is from the old plans and how much is for the new plans? Thank you!
I think you have raised a very important question. I know that some rumors and some misunderstanding have set the global stock exchanges on a roller-coaster ride. In fact, I don't think people were really appreciating what we mean in the package plan which is very important. I would like to take this opportunity to give you an outline of this plan.
First, thanks to our efforts over half a year, we have formulated a package plan that is four pronged. Namely, the massive government investment, wide-ranging industrial readjustment and rejuvenation plans, intensive scientific and technological support and substantial improvement of social security. These four aspects of the plan are interrelated with one another, and they form an integral whole that can be divided from one other. This also shows that this plan is aimed at addressing both the short-term needs and long-term needs and aimed at addressing not only the symptoms but also the root causes.
Secondly, massive government investment is the most direct, strongest and most efficient way to boost the economic growth. According to this plan, central government will make direct investment worth about RMB 1.18 trillion. Of course, by implementing those investment projects, we are also aimed at attracting investment from the non-governmental sources and other private capital, including loans from the banks. I can tell you very clearly that as far as the RMB 1.18 trillion is concerned, this money is totally for new investment. For this year's budget, we have already allocated RMB 595billion for this purpose.
Thirdly, the 1.18 trillion RMB of investment to be made by the government will be used mainly in the projects concerning people's well-being, technological upgrading, transformation, project related to environmental protection and major infrastructure development projects, and many other projects in other areas not included in this plan of the 4-trillion-RMB investment in the space of two years. For example, the total tax relief we are going to introduce will be far beyond the level of 500 billion RMB, it will reach the level of 600 billion RMB. We will increase the old age pensions for the retirees from enterprises and we will introduce a performance based wage system for the 12 million teachers in this country to raise their remuneration. We will also increase farmers' incomes and to broaden the scope of the subsidies and raise the subsidy levels. In the space of 3 years, we will plan to invest 850 billion RMB to reform the medical and health care system in this county. All these aspects are not included in the 4 trillion RMB investment plan.
Fourth, in the 4 trillion RMB investment plan for 2-year period, some of the projects are already identified by the 11th five year plan, mainly in the field of infrastructure development such as road construction and railway development. These old projects have already been evaluated and necessary preparations have already been made. For these projects what we are going to do is to speed up their development and construction. Otherwise, how can we identify so many infrastructure development projects in such short span of time? Of course, there are also new projects listed in the plan. For example, the government subsidized housing project, in the space of 3 years, we are going to resolve the housing difficulties for 7.5 million households and for 2A million households living in shanty towns. These are all new programs and these programs are also going to be fully debated and evaluated. The whole process will be transparent and be subjected to the supervision.
Fifth, we are prepared to tackle a protracted and very difficult international financial crisis and we have already reserved a leeway for ourselves in our policy formulation, which means that we have already had our plans ready to tackle even more difficult times. To do that, we have reserved adequate "ammunitions" which means anytime we can introduce new stimulus policies. Thank you!
Mr. Premier, I'm with Wall Street Journal. My name is Andy Brown and I have two questions. China is now the largest creditor of the United States. And how would you comment on the US government's policy to tackle the financial crisis? Some people are saying that given the huge debt level of the United States, it is likely that the US dollar will further depreciate. Are you worried about the Chinese investment in the United States? If so, what is China's investment strategy to diversify investment risks? Can you ensure or give your words here that China would not devalue the RMB currency, or at least in the short term? And the other question is whether China will increase its contribution to the IMF?
You speak very good Chinese and you actually raised three questions. It is true that China now is the largest creditor of the United States. The United States is the largest economy in the world. We follow very closely to the economic development in that country. President Obama and his new administration have introduced a host of steps to tackle the international financial crisis. And we do have our expectations of the effect of those steps.
We have actually lent huge amount of money to the United States, of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried. And I would like to through you to call on the United States to honor their words, stay credible nation and ensure the safety of Chinese assets.
As you may know, thanks to China's reform and development over the years, we have accumulated a huge mount of foreign exchange reserves, and this has shown the economic strength of China. In managing our foreign exchange reserves, the number one principle that we follow is to fend off risks. We always adhere to the principle of safety, liquidity and good value of our foreign exchange reserve management. We have also adopted a diversified strategy in this regard.
When it comes to China's foreign exchange reserve, first and foremost, we need to ensure China's national interests. And at the same time, we also need to take into account the overall international financial stability and I think these two aspects are interrelated.
As for your question about the possible devaluation of the RMB, I don't think the RMB is depreciating. Since July, 2005, China introduced the reform of exchange rate formation mechanism and ever since that reform was introduced, the RMB has appreciated against the US dollar by 21%. In the past one year, we can see that although there is a little bit depreciation of the RMB against the US dollar, but at the same time, we have seen drastic depreciation of currencies of European Union Countries and some Asian Countries. In this context, the RMB is actually appreciating in comparative terms. This has also put more and more pressure on China's export.
Our goal is to maintain basically stable RMB currency at a reasonable and balanced level. At the end of the day, the decision is for China itself to make. No country is in the position to pressurize the Chinese side to appreciate or depreciate the RMB.
We follow closely the issue of increasing contribution to the IMF. We believe that this is quite complex and I would like to make the following principles:
Number one, it is necessary to reform the internal governance stricture of the IMF to fend off the financing and investment risks. It is also important to implement the principle of striking a balance between rights and obligations. At the same time, the IMF should also pay more attention to the interests of developing countries.
Number two, to increase the contribution to the IMF is not a matter just for one single country. We believe that it is necessary for all members of the IMF to shoulder the responsibilities together in accordance with the quotas they have.
Number three, we also need to encourage other international financial institutions to develop various means to provide financing.
Number four, for whatever country in this world, any contribution to be increased to the IMF should be made in light of the actual conditions of that particular country and on a voluntary basis. Thank you!
Thank you Premier for giving me this opportunity. I am with Hong Kong ATV. we have noted that in your Report on the Work of the Government you indicated that the central government will go all out to support and consolidate HK's status as international financial centre. The central government will also go all out to support the diversified development at a proper level by Macao. At the end of last year, the central government also approved the reform and development plan for the pearl river delta area. HK and Macao have a lot of expectations of this plan. As you just said that the international financial crisis is still spreading and it has yet to hit the bottom. And the negative impact of the financial crisis are now being felt more acutely in HK and Macao. I would like to know that, what kind of new steps will the central government take to support the efforts of HK and Macao to tackle the financial crisis.
In my Report on the Work of the Government, we have already introduced several steps to support the efforts of HK and Macao in this regard. I would like to make four points in clear terms. Number one, HK is the international financial centre. What is most important for HK to tackle the international financial crisis is to maintain the financial stability and to retain the status as the international financial centre. To this end, I believe it is necessary for HK and mainland to strengthen their financial cooperation. I can tell you here that as far as the RMB settlement plan is concerned, the competent central government departments have already formulated the plan. Once the plan is approved by the state council, we will see to it that the plan be implemented as quickly as possible.
Number two, we want to accelerate the infrastructure development concerning the mainland, HK and Macao. I want to make it very clear here that actually the financing problem plaguing the HK, Zhuhai and Macao bridge project has already been resolved and preparations are being made very intensively. We will try to make the construction start before the end of this year.
Number three, within this year, supplemental agreement to the CEPA between mainland and HK will be signed. According to the supplemental agreement, we will further increase the access to the mainland markets by the service sector in HK.
Number four, the central authorities have already approved the long-term plan for the reform and development of the pearl river delta region. In accordance with this plan, we will be able to give full scope to the advantages of the three areas and further strengthen their cooperation and enable these three areas to draw on each other's strength.
Number five, in order to encourage a properly diversified development by Macao, the central government is also prepared to introduce new steps.
People in HK and Macao have experience in tackling the Asian financial crisis. We also have full confidence that under the leadership of the Hong Kong Special Administrative Region Government and Macao Special Administrative Region Government, people in HK and Macao are fully capable to tackle the international financial crisis and be able to overcome the difficulties and maintain the prosperity and stability in HK and Macao. Before I conclude my answer to this question, I would like to reassure you that the motherland is always the strongest supporter of HK and Macao. We will do what is in our power to support the economic development in HK and Macao. Thank you!
Thank you Mr. Premier, I am with People's Daily and its website. Given the impact of the financial crisis, you have said on many occasions and actually you said just now that confidence is more important than gold. Where does your confidence come from? What is the basis of the confidence? In your report on the work of the government, you also set the goal of ensuring the economic growth rate at 8% for this year. On this goal of 8% growth rate, people both inside the country and abroad have raised their doubts. How would you say on this issue?
People are all very concerned about whether China would be able to attain the goal of 8% GDP growth for this year. I would admit that it will be a difficult job. This being said, l also believe with considerable efforts, it is also possible for us to attain the goal. I think we need to approach the issue of a 8% goal of economic growth from the following three prospects. Number one, we need to take into account the necessity and possibility for this goal. Number two, this goal is the indication of the government commitment and responsibility. Number three, this goal also shows the confidence and promises we have for the future. I can give you an example. I don't think by setting a goal we can determine or decide on everything. But setting a goal is like installing a compass on a sailing vessel. If there is no compass on a sailing vessel, they would not be able to know where the vessel is heading and when the vessel will arrive at its destination. There is a saying goes to the effect that if this vessel has no compass, then all it has or is racing to will be headwinds rather than tailwinds.
As far as the possibility and importance of the 8% growth rate goal is concerned, I think I had already made it clear in my Report. Here I would like to stress the following points. Number one, China is now in the stage in which China accelerate the industrialization and urbanization. China is also in the stage and at the time when China is going to further increase its consumption and upgrade its consumption structure. Among 1.3 billion people we have in this country, about 900 million are farmers. If you go to the countryside and take a look for yourself, you will see, in fact, that no matter how much investment you may make in the countryside, that will not be enough. China's market potentials are far larger than EU countries or the US given the population it has and given its size.
Number two, China has abundant labour resources and we do have our own competitive edge in terms of talent. Although now, we do face some difficult problems in employment, in the long-term perspective, these are going to be advantageous conditions we have in development.
Number three, thanks to our reform over the past ten years, China's banking sector is generally sound and stable. And the banking sector of this country has offered very strong support to the economic growth of China. I can give you a comparison. Now the US and the EU countries are fighting the international financial crisis on two fronts. One front is the international financial crisis itself, the other front is in the real economic sectors. In China, of course, in the financial sector we need to fend off the risks. However, we have not used the penny from the fiscal resources to plug the loop holes in the banking sector in this country. On the contrary, the banking sector in this country has offered and extended a large ammount of credit to boost economic growth. The figures are very clear to you, I believe. In November last year, the newly extended loans stood at about 470 billion RMB, and December last year, 770 billion; January this year, 1.62 trillion RMB; February, 1.07 trillion RMB.
What is important about our effort to tackle the international financial crisis is that over the past few months, thanks to the effort we have made, we have seen that the hearts of the Chinese people have begun to feel the warmth. We believe that the warm hearts of the people will also pass on the warmth to the economy. We know full well that no country in today's world can stay immune to the negative impact of the international financial crisis and we can not overcome the difficulties of the crisis out of the context of the international economic difficulties. But we know full well that we would better fetch a flint than beg for light and we would better dig a well ourselves than beg for water from others. That is why I hope that all the Chinese people would be able to pass on the warmth they feel in their hearts to the Chinese economy. Thank you!
Premier Wen, I'm from Financial Times. You mentioned in your previous response that China has a huge domestic needs for spending particularly in rural areas. In that context, does that make sense for China to have 2 trillion dollars of reserves which money you affectively lend to richer countries? Second question is about Tibet. Last week particularly has seen extraordinary security measures not only in Tibet autonomous region but in other Tibetan parts of China. Given these very extreme security measures, does it not indicate that there are serious problems in your policies in the region of the country?
As for your first question I think 1 had already given an answer to the question raised by FT in the UK. Still I would like to use this opportunity to make further clarification.
China's foreign exchange reserves are created thanks to the strenuous efforts made by the Chinese people. This has greatly increased China's capacity to pay in external transactions and trading. At the same time, this has also demonstrated China's economic strength. However, the holdings of foreign exchange are in the form of borrowing on the account of the banks. Foreign exchange reserves are not money of fiscal resource. The use of the foreign exchange reserves should be made mainly in external investment and international trade. We have already introduced a diversified strategy in managing our foreign exchange reserves. As far as the current state is concerned, our holdings are generally safe. We will further open up China to the rest of the world to make full use of both domestic and international markets and domestic and international resources. We need to give full play to the role of foreign exchange reserves. So that the foreign exchange reserves we have will not only be following the principle of good value, safety and liquidity but also support the national development and improvement of people's lives.
The situation in Tibet is on the whole peaceful and stable and the Tibetan people hope to live and work in peace and stability. Both the Chinese constitution and the law on regional ethnic autonomy have provided the freedom and rights for the people in Tibet, particularly their freedom of religious belief. Over the past few years, the state has also made efforts to increase fiscal input in Tibet to accelerate the economic development in the region and improve the livelihood of the farmers and herdsmen in Tibet. Tibet will remain committed firmly to the policy of opening up because this meets the needs of Tibet's own development. Actually I believe that we need to put your question to the other ground, that is the tree fact. Tibet's peace and stability and Tibet's continuous progress have proven that the policies we have adopted are right. Thank you!
Thank you Mr. Premier, I am with the CNA from Taiwan. My question is about the economic cooperation agreement for the two sides of the Taiwan straits. People from both sides of the straits are very much interested in the signing of such an agreement. ! would like to know that is it possible to sign such an agreement before the end of this year? If so, will that mean that Taiwan would be able to participate in the ASEAN plus one mechanism in this regard. In your Report on the Work of the Government, Mr. Premier, you also said that the mainland is willing to make fair and reasonable arrangements for Taiwan's participation in World Health Assembly. I would like to ask you to kindly analyze the situation for people back in Taiwan, is it possible for Taiwan to participate in the activities of the World Health Assembly this year? The final question is that, we know Taiwan is renowned or its rich sight seeing resources and a lot of people went to Taiwan on sight seeing trips. If you have the opportunity to visit Taiwan and do the sight seeing, where would you like to go?
I would like to share with you the following facts. Taiwan and mainland already have very close economic ties. It is fair to say that our ties are so close that actually such ties are indivisible. Last year, despite the impact of the international financial crisis, the two-way trade volume between the two sides was nearly 130 billion US dollars, with Taiwan running a surplus of 77.8 billion USD. As things stand, over 30 thousand Taiwanese enterprises are set up and running on the mainland with a total investment of 47 billion USD. Given the close ties we have, I believe that we should step up our cooperation in joint endeavor to tackle the financial crisis.
In my Report on the Work of the Government, I did say that the two sides of the Taiwan Straits should enter into consultations at the early date to sign a comprehensive economic cooperation agreement and establish a cooperation mechanism tailored to the features of the two sides. I think if we take a close look at what we put down in the report, we can see that concerning the signing of the agreement and the establishment of the mechanism, we need to follow three alignments. Number one, this should be aligned with the state of development of the cross strait relations; number two, this should be aligned with the needs of the cross strait economic cooperation and trade; and number three, this should be aligned with the features of the economic ties and trade between the two sides. In short, we want to attain the goal of mutual benefit and win-win result for both sides. We sincerely hope that the two sides of the Taiwan Straits would be able to intensify their efforts in their consultations to sign such an agreement in a proper way and establish a cooperation mechanism that is conducive to both sides.
Taiwan is a treasure island of China. I have long cherished the hope of going to Taiwan and I sincerely hope that I can go to Taiwan and see much of Taiwan. I really like to go to the Alishan mountain, the sun and moon lake and all other places in Taiwan. I want to visit more places on the island and have contact with the people in Taiwan. Although I am already 67 years old this year, if there is a possibility for me to go to Taiwan, even if I can no longer walk, I will crawl to the island. In the Report on the Work of the Government, I made it clear that we will make fair and reasonable arrangement for Taiwan's participation in international organizations that concerns Taiwan's interests through consultations. We are willing to have consultations and coordination. Thank you!
Good morning, Mr. Premier, I am with Itar Tass News Agency, I have a few questions. This year as the government meeting of SCO (Shanghai Cooperation Organization) will be held in China. China will be the host, and in your opinion, what are the most pressing or hot topics on the agenda of the meeting? What kind of steps do you believe the member states of this organization can take together to step up their economic cooperation, particularly to cooperate to tackle the international financial crisis together? In the Chinese language, the word crisis has two meanings, crisis itself and opportunities at the same time. In your view, what kind of opportunities does China have in tackling the impact of the international financial crisis? I would also like to ask while walking out of the shadow of the international financial crisis, will China be able to pursue a more important position in the international economic system?
We have noted that in the wave of the international financial crisis, there is a number of states of SCO that have been impacted to various degrees. Member states of this organization should work together in a joint effort to tackle the crisis. Given our geographical proximity and our complementary structures, I have every reason to believe that through our cooperation we will be able to tide over the current difficulties. To make my point clear I would like to give two examples. Number one, not long ago, China and Russia signed a package cooperation agreement on both oil and financing issues. This has addressed the very issues in our oil cooperation. We have also signed a letter of intent on strengthening our financial, energy and resources cooperation with Kazakhstan. Actually we hope that we will be able to sign this agreement before the end of this year. Some of the SCO countries are rich in resources and energy, some are quite developed and strong in science and technology and has high-tech. Some countries are fairly under-developed, which need a helping hand. I think we need to step up our cooperation among the member states in energy, resources, transport and other major infrastructure projects and in agriculture and high-tech fields.
I think you share the same interpretation of the Word opportunity with us. We believe that it is true our economy is confronted with great challenge and at the same time, there is the development opportunity. If we can manage the situation well, take the right steps and implement the measures promptly and resolutely, I really hope that we would be able to walk out of the shadow of the financial crisis at an early date. After standing the difficult trial, I believe the Chinese economy will display even stronger vitality. Just as you said, I think I can also give you another line to the effect that after encountering all kinds of difficulties and experiencing all kinds of hardships, at the end of the day we will see light at the end of tunnel. We must take action rather than sit idly by. Thank you !
I am with the China news service and its website. This year China will have a record fiscal deficit of 950 billion RMB, for the local budgets for the first ever they will also register a 200 billion RMB of deficit. There is also a large ammount of hidden debt in the local governments. I would like to know are these fiscal risks within control?
I would like to answer your question in the following three points. Number one, our fiscal deficit is still within control and our debt level is also safe. This has to do with the facts that in the past few years, we have actually capped our deficit running down. In 2003, the fiscal deficit was 319.8 billion RMB, 2.6% of China's GDP of the same year. In 2008, the deficit was down to 180 billion RMB, 0.8% of China's GDR In the year of 2003, the Chinese government issued treasury bonds worth 140 billion RMB and in 2008, only 30 billion RMB. Given China's economic development and increase in China's fiscal revenue over the past few years, we are now having adequate leeway to issue more debt and run a larger deficit.
At the same time, we need to have more indepth understanding of the active fiscal policy. In tackling the current international financial crisis, the most direct, strongest and efficient way to do that is to increase fiscal input, the faster the better. There is always another side to the same coin. If we are able to prevent a drastic slowdown in the economy and promote economic growth, at the end of the day, the fiscal revenue will also increase. We need to take a holistic approach to this issue.
Number three, two more points. We need to use the fiscal input in those areas that are most important, crucial and have the most pressing needs. We also need to ensure at the same time that by making such fiscal investment we will be able to leave a valuable asset for our future generations. Throughout the whole operation of the fiscal resources, we need to ensure and strengthen supervision. For the operation of the resources both at the central and local level, we will see to it that the whole process will be transparent to the people and will be subject to full supervision. Thank you!
Thank you Mr. Premier, I am with Japan NHKTV. The first question is about stability in China. Because of the financial crisis, employment situation is getting serious as the migrant workers lost jobs and university graduates can not find their jobs. What is your perspective on the employment situation in this year? How do you have confidence to maintain stability of the society under the situation? My second question is about the stability in the region. Now the DPRK is preparing for a launch of ballistic missile early next month. What is your view on this launch of ballistic missile? What will you talk in the meeting with coming DPRK Prime Minister? Thank you very much!
The unemployment issue is a very serious one. We have already introduced a package plan and we have also increased in fiscal input into the economy this is to boost the economic development at its root. As a matter of fact, what is important in resolving the unemployment issue is to strongly encourage the development of the SMEs, because they create 90% of the jobs.
We have already formulated very specific policies in addressing the unemployment issue for migrant rural workers and college graduates. What is now important is to ensure their implementation.
I can tell you that from the end of last year till February this year, although we have seen increasing number of jobless people and also a large number of migrant workers reclining to the countryside, generally speaking, China's society remains peaceful and stable.
We will continue to put the creation of the jobs high on the agenda of our economic and social development and we will continue to take strong measures in this regard. I recall once I said that for either the college graduates or the rural migrant workers, a job not only concerns their livelihood but also their dignity.
As far as this issue is concerned, we will pay every attention possible to the issue and will never overlook this issue.
As for the situation on the Korean peninsula, I believe what is most important is to make active efforts to advance the six party talks process. We want to resolve the key thorny issues plaguing the six party talks so that we can move forward and realize the denuclearization of the Korean peninsula. Only by so doing will it be possible to maintain security and stability on the peninsula and also maintain security and stability in northeast Asia as a whole.
We hope that the parties involved in the six party talks will further build consensus, bearing in mind the big picture, properly handle their differences and refrain from taking actions that may escalate the tensions. The Chinese government will continue to stay in close touch with the parties concerned and strengthen the consultations. We want to continue to advance the six party talks to the sound track.
The DPRK is a friendly neighbour to China. China and DPRC share traditional friendship. This time the Prime Minister of DPRK will visit China at my invitation very soon. During his visit we will have full exchange of views on how to further our friendship and cooperation and on other regional and international issues of mutual interest. Thank you!
I am with Le Figaro. Mr. Premier, Tibet is a focus. These days US Congress, Obama administration and EU parliament howe asked China to resume talks with Dalai Lama. Of couvse, China said it is an internal affair. What is your position on this issue? Are you ready to restart talks with Dalai Lama and to work on the demand of real autonomy? The issue of relations between China and France are quite cold for a few months since last December. How do you see the future of this relation? Do you foresee a warm meeting between President Nicolas Sarkozy and President Hu Jintao in London besides the G20 Summit? You said many times that France is responsible for this situation, and as to repair the links, what do you completely expect from France?
Tibet is an inalienable part of China's territory and Tibet related issues are totally and completely Cbina's internal affairs that brook no foreign interference. This is our principled position. Our policy towards the Dalai Lama is consistent and clear cut. As long as he gives up his separatist stand, we are willing to have contacts and consultations with his representatives. This door is always open.
Last year, in the very difficult circumstances, at the request of the Dalai Lama, we had three rounds of consultations and contacts with his representatives. But for such contacts and consultations to make progress, I think what is important is for the Dalai Lama to have sincerity. Otherwise, no substantive result can be made. Such contacts and consultations may continue.
We always say that the Dalai Lama is not a simple religious figure and he is actually a political exile and we have full justifications for this position. The so called exile government situated in Dharamshala is a defacto theocratic government. This illegal government is under direct leadership of the Dalai Lama.
The Dalai Lama has been travelling around the world and he is quite capable of misleading some political figures in other countries. Some western countries are also trying to use him. I can give you an example to illustrate that we will approach the Dalai Lama not only through what he says, but also what he does.
Several days ago, Dalai tried to rebut what was said by Chinese Foreign Minister Yang Jiechi in his press conference. Dalai said that he has never asked the central government to withdraw the Chinese troops from Tibet or to move the Hart ethnic groups out of Tibet. These are sheer lies.
You may refer to the Five Point Proposals made by Dalai on peace in Tibet in the US back in 1987 or the Seven Point Supplementary Proposals he made in Strasbourg, France in 1988. In those proposals, he made it very clear that he calls on the central government to withdraw the troops from Tibet and to remove the military installations. He also calls on the immediate stopping of the movement of Han ethnic groups into Tibet, as for those Han ethnic groups who already live in Tibet, he asked them to leave. These are all written words on paper. Of course, Dalai may change his course, but he can never deny what he has already said.
It has been 45 years since the establishment of diplomatic ties between China and France. Despite some twists and turns in the course of development of this relationship, the relationship on the whole has kept moving forward. This time, the problem is with the high-profile meeting between the French leader and the Dalai Lama, as this concerns the core interest of China and affends the Chinese people.
We hope the French side will make very clear-cut stand on Tibet related issues and help recover the China- France relations as quickly as possible. This not only serves the interests of both China and France but also the interests of China and EU. Thank you!
Ladies and gentlemen, I still see so many hands raised, but the time really flies, the last two questions.
Mr. Premier, I am with CCTV and its website. When we cover these events, what we fear most is to hear people say this is an institutional barrier which means that this issue can not be resolved for now. As a matter of fact, quite a number of deputies have expressed their concerns because now the central government and local governments are concentrating their energy and resources on boosting domestic demand and ensuring economic growth. Will this have a negative impact on the process and advancement of reform? Will this slowdown the reform process? What are your considerations and what are the considerations of the central government to deepen the reform and to remove the institutional barriers?
In tackling the financial crisis, we would speed up the reform process rather than slowdown the reform process. Because only by so doing, only by removing the institutional and systematic barriers, would it be possible for us to ensure the implementation of the various steps.
We need to press ahead with reform in the economic system. Mainly, we want to further improve the socialist market economy. To be more specific, we not only need to have strong macro-level regulatory measures, but also need to give full play to the basic role of market forces in allocating resources. We not only ensure massive fiscal input by the government, but also need to encourage the development of non-governmental or private enterprises and encourage private investment. We not only need to introduce macro-plans to readjust and rejuvenate the various industries, but also need to pay more attention to encouraging the enterprises to bring their full potentials and be more vibrant themselves.
We also need to actively advance the reform in the political system. I believe what is most important now in this regard is to do a good job in the following three areas. Number one, we need to continue to develop the socialist democracy to ensure the freedom and rights enjoyed by our people. Number two, we need to press ahead with the reform of judicial system to promote social equity and justice. Number three, we need to strengthen and enhance supervision by various sectors of the society, so that the operation and administration of the government will be made in accordance with law and will be subject to the supervision of the whole society.
Thank you, Mr. Premier. I am with SABC South Africa Broadcasting Corporation. How can the upcoming 0-20 Summit create more opportunity for developing countries to develop more cooperation between them? And what need to be in place to ensure that developing countries have more saying during the financial crisis?
In the international effort to tackle the international financial crisis, the developing countries have suffered most and it is very easy for the developing countries to disappear from the radar screen. I think at the G-20 financial summit, we must see to it that how to show concern for the developing countries and help the developing countries, the least developed ones in particular, become an important topic on the agenda of the meeting.
The MDGs should not change. When I presided over an ASEM meeting, once I heart the speech made a leader from the developing country. In the speech he said sometims it is easier for some developed countries to adopt an investment involving hundreds of billion USD than adopting a proposal to give assistance to developing countries in meeting the MDGs.
That is why I always stress the importance of not changing the goals of the MDG. Developed countries in particular should pay more attention to giving more financial and policy support to developing countries.
China is itself a developing country and we have delivered on what we have promised. We have already relieved 46 least developed countries of a debt totaling 40 billion RMB. We have given a total of 200 billion RMB of aid to developing countries. Last year at the UN summit, I on behalf of the Chinese government made serious commitment that we will continue to cancel the debt for the least developed countries in the world and the debt is the outstanding debt that are supposed to mature at the end of the year 2008. We will also apply zero tariff treatment to 95% of their export to China.
China also contributed 30 million USD to the FAO to establish the trust fund. China was among the first of these countries to do so, We will build more hospitals and schools for Africa and we will also admit more African students in China. And at the same time, we will send more medical staff and teachers to the least developed countries in Africa to support their development.
I hope that in the wave of this international financial crisis rarely seen in a century, the least developed countries will not be forgotten. Because poverty of those countries will also become the sources of concern and anxiety of the developed countries and the whole world. Thank you!