----Speech by Chairman Li Peng of the Standing Committee of the National People’s Congress at Indian International Centre
13 January 2001

Honourable Heptulla, Deputy Chairperson of Rajya Sabha,
Ladies and Gentlemen,
Friends,
   It gives me great pleasure to visit India, an enchanting country, again at the beginning of the new century and new millenium. On behalf of the Chinese people, I would like to extend cordial greetings to friends old and new who have, over the years, cared for the friendly relations and cooperation between China and India, and send best wishes to the industrious and talented Indian people.

   As history turns a new page, people around the world are reviewing the past and looking to the future.

   In the 20th century, mankind experienced two World Wars. Despite this, the vehicle of history was moved forward. That India and China won national independence and liberation was two epic achievements of the century. Mankind created unprecedented civilizations and enjoyed fast growth of social productive forces driven by revolution of science and technology in the past century. Now, we are ushering in a better and more prosperous era.

   With great confidence in the new century, we in China hope that the coming century will be one in which people of all countries will be blessed with peace and development and one in which different civilizations can learn from each other and develop hand in hand.

In today’s world, there are two prominent trends: one is gradual multi-polarisation in the international political patten and the other is increasing globalization of the world economy. The major task facing the people of the world is to promote the process of multi-polarity for world peace and ride the tide of globalization for common development so that a just and fair international new political and economic order can be established in the new century.

   Multi-polarity represents an inevitable trend of the current international relations, and serves world peace, stability and democracy. We maintain that all countries, regardless of size, wealth and strength, are equal members of the international community and entitled to equal status, rights and interests. People of each country have the right to choose for themselves a social system and road of development in light of the country’s conditions and features. Given the complexity of international affairs, it is unfair and impossible for them to be dictated by a country or a few countries. They should instead be addressed through consultations among all countries. Global challenges need to be met by countries working together. The world destiny should be in the hands of world people.

   Being an unavoidable reality in the world economy today, globalization may facilitate each country’s efforts of broadening sources of investment, introducing advanced technology and drawing upon managerial expertise. Developing countries can also take advantage of the opportunities brought by globalization, tap the potential of a late-starter and accelerate economic development. Of course, the negative impact of globalization must not be overlooked. The gap between the rich and the poor is widening in a global context. Contradictions between the North and the South are put into sharp relief. Developed countries are at an advantage in the process  of globalization, while developing countries are faced with grave challenges in safeguarding their economic sovereignty and security. Globalization should benefit the whole world. We need globalization that leads to a win-win situation, allows co-existence and promotes common development of both developed and developing countries. The international community should work hard to make sure that globalization leads to balanced, stable and sustainable development of world economy.

   In the great cause of seeking world peace and promoting common development of mankind, China and India shoulder heavy responsibilities and have made their due contribution to the world. Forty-seven years ago, Premier Zhou Enlai and Prime Minister Nehru jointly initiated the five principles of mutual respect for sovereignty and territorial integrity, mutual non-aggression, non-interference in each other’s internal affairs, equality and mutual benefit and peaceful coexistence. This is an evergreen tree growing out of oriental civilization and the spirit of the times. Mr. Nehru said, “If these principles were recognized in the mutual relations of all countries, then indeed, there would hardly be any conflict and certainly no war.” Mr. Deng Xiaoping pointed out that: “the Five Principles of Peaceful Coexistence are the best approach to handle state-to-state relations. A review of the practice in international relations reveals that these principles are most dynamic.” After being put to practice for a few decades, the Five Principles of Peaceful Coexistence not only have been widely accepted as basic principles governing international relations, but will also serve as an important foundation for a new international political and economic order.

Ladies and Gentlemen,
Friends,
   The Chinese and Indian people enjoy a long lasting friendship. In ancient times, our ancestors braved hardships, climbed mountains and crossed rivers to promote exchanges between the two great civilizations. They left a brilliant chapter in the world history of cultural exchanges. Kumarajiva and Bodhidharma, both prominent Indian monks, travelled eastward and brought the Chinese people authentic Buddhist sutras. Prominent Chinese monks Fahien and Huen Tsang travelled westward to the land of Buddha and left for the Indian people precious records of ancient Indian history and culture. In modern times, people of our two countries sympathized with, showed understanding to and supported each other in the fight for national independence and liberation. We in China will never forget Dr. Kotnis, who sacrificed his young life for the liberation cause of the Chinese people.

   We feel propelled by history to build on the existing basis laid by our ancestors and add new chapters to China-India friendship. Chinese leaders said in the 1950s that “India is a friendly country to China. It has been so for more than 1,000 years. And we believe it will continue to be so in the future”.

   We are required by reality to elevate China-India relations to a new height in the 21st century. As our common ground far outweighs our differences, the Chinese and Indian peoples have ample reason to develop friendship and become good neighbours and good friends.

   Being the two largest developing countries in the world, China and India have extensive common interests in international political and economic arena. We both favour a multi-polar world, hold identical or similar positions on many major issues and can cooperate in a wide range of international affairs. Both facing the difficult task of modernization and rapidly improving living standards, we, as two neighbouring countries, need a peaceful and stable surrounding environment and need to live amity, which is in our fundamental interests. Similar national conditions and similar endeavour to carry out comprehensive economic reform make it possible and necessary for our two countries to learn from and draw upon each other in many fields.
   
   During President Jiang Zemin’s visit to India in 1996, the two sides agreed to establish a constructive partnership of cooperation oriented towards the 21st century, thus charting the course for the future of China-India friendship. Last year when President Narayanan visited China, the two countries reaffirmed that China and India do not take each other as a threat or adversary and reiterated their continued adherence to the Five Principles of Peaceful Coexistence. The two Presidents also reached extensive agreement on ways to promote friendly ties and co-operation between the two countries. All these constitute a foundation and provide guarantee for the sound growth of China-India relations.

   Here, I wish to take this opportunity to brief you more on some basic points of China’s policy towards India.

   We place emphasis on keeping good-neighbourly and friendly relations with India. Developing such relations with India, an important neighbour of China, is our consistent guiding principle and an essential part of China’s foreign policy of peace with surrounding countries. We have never taken India as a threat. Nor do we intend to pose a threat to other countries or seek any sphere of influence.

   We wish to expand trade and economic cooperation with India. Although there has been much headway in our trade and economic relations in the past decade as evidenced, among others, by the 10-fold increase in two-way trade volume, our current level of cooperation is far from commensurate with the scale of our respective economies. There is still huge potential yet to be tapped through our concerted efforts.

   We stand ready to strengthen cooperation with India in international affairs. Fully affirming the cooperation our two countries have conducted in international political and economic fields, we hold that China and India, the two largest developing countries, have the obligation and capability to work more actively to play their due part in the international arena.

   We attach importance to enhancing mutual understanding and trust with India. We agree that China and India are still lacking in mutual understanding and to achieve better understanding and trust is a pressing task in our bilateral relations. While not shying away from the problems and differences between us, we hope that far-sighted statesmen of our two countries will demonstrate courage and will and make efforts to resolve these problems and differences. At the same time, we believe that problems of this kind or another, including those left over from history, should not become impediments to the growth of our bilateral relationship and that the positive development of our ties will create more favourable conditions for the ultimate resolution of those problems and differences.

   China wishes to see a prosperous, developed and strong India and welcomes a more active role of India in regional and international affairs. We have noticed with pleasure that over the past ten years Indian economy has obtained an average annual growth rate of 6% and its IT industry has developed rapidly, with its software industry taking the forefront of the world. China wishes to express its congratulations to India on its success in various fields over the past five decades since its independence, and we appreciate your efforts in safeguarding the rights and interests of developing countries.

   China is willing to maintain and develop good-neighbourly and friendly relations with all countries in South Asia. As a country adjoining the South Asian region, China sincerely hopes to see enduring peace, stability and development in the region where all countries can treat each other as equals, live in harmony and resolve disputes peacefully through dialogue. China supports all efforts that are conducive to peace and stability in South Asia and the process of regional cooperation therein.

   Ladies and Gentlemen,
   Friends,
   Like India, China experienced sufferings and humiliation inflicted by Western powers in modern history. The Chinese people, led by the Communist Party, staged persistent and unrelenting struggles for liberation and national independence. History suggests that only when national sovereignty is free from violation and society free from instability, can people concentrate their attention on developing the economy, building national strength and improving living standards.

   In its 50-year history, New China has made marked progress in economic development. Especially in the past two decades and more since Mr. Deng Xiaoping’s reform and opening-up policy was launched, China enjoyed phenomenal economic progress with its GNP growing rapidly at an average annual rate of 9% and the living standards of its people improving as well. Now in China, the economy grows in a sustainable way, reform is deepened continuously, people are content with their life and work and the aggregate national strength is modestly strengthened. Nevertheless, China is still a developing country. This is our basic national condition. In order to realise modernisation, the Chinese Government has formulated a three-stage development strategy. The objectives of the first two stages have been realised. For the third-stage, we will catch up with medium-level developed countries in terms of per capita GNP by the middle of this century, achieve modernisation by and large and turn China into a prosperous, strong, democratic and culturally advanced socialist country.

   We have three major tasks in the new century, namely, to continue the modernisation drive, to realise national reunification, and to safeguard world peace and promote common development. China is now working on the draft of a new Five-Year Plan for national economic and social development. According to our plan, China’s GDP will keep an average annual growth rate of more than 7% and GDP in 2010 will double that of the year 2000. People will lead a more comfortable life then and a system of socialist market economy will be in place. China will continue to implement the policy of “peaceful reunification and one country, two systems” and make active efforts to push forward the reunification of the motherland. The development of China will benefit the Chinese people and contribute to peace and development of the world rather than constitute a threat to any country. China is opposed to hegemonism and will never seek hegemony itself. As a responsible big country, China will unswervingly adhere to the independent foreign policy of peace in a bid to make greater contribution to the mankind.

   In the past 20 years or more since China started its opening-up and reform, we have all along made it a basic policy to develop socialist democracy and improve the socialist legal system. The system of people’s congresses, as the fundamental political system of China, embodies extensive democracy for the people and represents the fundamental interests of the entire Chinese people. It plays an important role in boosting economic development and social progress in China. China has never stopped its efforts to reform the political system while conducting reform of the economic structure. In the future, China will continue to improve its democracy and legal system and strengthen the system of people’s congresses and enforce the policy of ruling the country according to law. On the basis of full guarantee of people’s right to subsistence and development, the extensive rights and freedoms of the people will be ensured according to law. Human rights and democracy will be respected and the sound development of China be sustained with social stability maintained. Despite different political systems in China and India, the National People’s Congress of China and the Indian Parliament can learn from each other and contacts between the two parliaments can boost the friendship and co-operation between the two countries and the two peoples.

Ladies and Gentlemen,
Friends,
   
  China and India have fostered splendid ancient civilisations and once were the locomotives for Asia’s long-time lead in the world. But in modern times, Asia lagged behind. It has started its great rejuvenation since the second half of the 20th century and China and India along with other Asian countries share the obligation for the future of Asia. In the new century, let us make joint efforts to build China and India into prosperous, strong, democratic and culturally advanced countries. And let us work hand in hand for peace and development in Asia and the world at large.

   Thank you.