Speech by Hu Jintao, President of the People's Republic of China, at the 15th St. Petersburg International Economic Forum

(St. Petersburg, June 17, 2011)

It gives me great pleasure to be here in the beautiful northern capital of Russia for the St. Petersburg International Economic Forum (SPIEF) 2011. Let me begin by offering my hearty congratulations on the opening of the forum.

Since its launch in 1997, SPIEF has grown into an important platform for discussions on economic development in Russia and beyond. Attracting outstanding representatives of different sectors, it has enjoyed rising global influence. In the past 15 years, SPIEF has witnessed the sustained and fast growth of the Russian economy and contributed to international economic exchanges and cooperation. We applaud the positive role SPIEF has played over the years.

Our world is experiencing major development, major transformation and major adjustment. There is a stronger call for peace, development and cooperation among the people. The trend towards a multi-polar world and economic globalization is gaining momentum. Economies around the world are becoming increasingly inter-dependent. Emerging markets and developing countries are growing rapidly, and regional economic cooperation is making robust progress. Science and technology is on the eve of new breakthroughs, and the global economic order is undergoing profound changes. Even with all these positive developments, however, we should not lose sight of the potential risks. More than two years after the international financial crisis, the world economic recovery remains slow and fragile. The underlying impacts of the crisis are still with us, and the outlook of the world economy is uncertain. In addition, international and regional hotspot issues keep flaring up, uneven development between the North and the South is more acute, and protectionism of various forms is resurfacing. There are a range of new global challenges such as climate change, energy security and food security that threaten the very survival and development of mankind.

China will take an active part in discussing and resolving major issues in the world economic development, and work with all other countries to meet the various challenges. To this end, I wish to make the following observations.

First, we need to enhance global economic governance and press ahead with the reform of the international financial system. The international financial crisis has taken its toll on individual economies and the world economy as a whole. The crisis has highlighted the deficiencies of the existing international financial system and the inadequacy of the global economic governance mechanism in dealing with crises. Today, emerging markets and developing countries are taking a growing share in the global economy and playing a bigger role in global governance. The global economic governance mechanism should adapt to the new changes in the world economic landscape and observe the principle of mutual respect and collective decision-making. It is of special importance to increase the representation and voice of emerging markets and developing countries in the new mechanism. We need to support and promote a greater role of the G20 in global economic governance in order to bring about full recovery and growth of the world economy. Cooperation mechanisms of emerging markets, notably the BRICS, represent a new model of global economic cooperation and a prime example of multilateralism. We need to improve global economic governance; build a fair, just, inclusive and well-managed international monetary and financial system and a balanced multilateral trading regime that benefits all; oppose all forms of protectionism; and work towards an international economic order that is more just and reasonable.

Second, we need to accelerate transformation of the economic development pattern and make appropriate adjustment to economic structure. World economic development has brought both opportunities and challenges. We need to fully grasp and follow the development trend of the world and adapt ourselves to the changing international economic environment. We should make unremitting efforts to transform economic development pattern and adjust economic structure so as to resolve various economic problems and achieve development and transformation all at once. In this process of transformation and adjustment, countries should learn from each other and work together for the strong, sustainable and balanced growth of the world economy.

Third, we need to harness advances in science and technology and quicken the steps to make them a key driver of our economies. As scientific and technological innovation widens and deepens at a rapid pace, countries around the world are losing no time in implementing their science and innovation strategies, channeling more resources to research and development, and training more innovation-minded personnel. China, too, is working vigorously to develop innovative capacity and become an innovation-oriented country. We should encourage cooperation in innovation between countries and promote the application of scientific and technological achievements. We should make innovation a key driver of world economic development and part of the solution to various constraints and obstacles hampering economic growth. We should combine the effort to spur innovation with that to improve people’s well-being so that the fruits of scientific and technological innovation will benefit more countries and peoples.

As a friendly neighbor and a strategic partner of coordination, China follows closely and supports Russia’s development and revitalization endeavor. We are pleased to note that, in response to the impact of the international financial crisis, Russia has adopted a series of effective measures and successfully put its economy back on the path of sound growth. Today, Russia is vigorously restructuring its economy and pursuing its all-round modernization strategy centered on innovation. Gratifying progress is being made on various fronts and the living standards of the Russian people are on a rising trajectory.

Both China and Russia are major emerging markets. Our sustained and steady development provides opportunities not only to each other but also to the world economy. With efforts from both sides, our economic and trade cooperation has seen a strong rebound in recent years, and we have become each other’s major trading partners. During my visit this time, President Medvedev and I have agreed to endeavor to raise bilateral trade to $100 billion by 2015 and to $200 billion by 2020. To lend new impetus to our economic growth, we will deepen mutually-beneficial cooperation in investment, energy, nuclear power, aviation, aerospace, science and technology, finance as well as collaboration at the sub-national level. In particular, we will expand cooperation in new energy, new materials, bio- and nano-technologies, and intensify cooperation in emerging green industries.

China’s 12th Five-Year Plan has set out the goals and tasks for its economic and social development in the next five years. It covers such areas as economic development, structural adjustment, science, technology and education, resources and the environment, people’s livelihood, social development, and reform and opening-up. In a nutshell, China will follow the theme of scientific development and focus on transforming the economic development pattern. China will make greater efforts to put people’s interests first; pursue comprehensive, coordinated and sustainable development; advance reform and opening up; ensure and improve people’s well-being; promote long-term, steady and fast economic growth; and enhance social harmony and stability, thus laying a solid foundation for the building of a moderately prosperous society in all respects.

China will remain committed to the cause of peace, development and cooperation. We will adhere to the independent foreign policy of peace, follow the path of peaceful development and pursue the win-win strategy of opening-up. We welcome Russia and other countries to involve themselves in China’s development and benefit from the many opportunities it brings. We want to work with the rest of the world to usher in a bright future of mutual benefit and common development.