By Li Keqiang, Premier of the State Council of the People's Republic of China

(Bucharest, Romania, November 26, 2013)

Good morning! It gives me great pleasure to meet with leaders of the Central and Eastern European (CEE) countries in this beautiful city of Bucharest. Let me begin by thanking Prime Minister Ponta and the Romanian Government for their meticulous preparations and thoughtful arrangements for the meeting. I look forward to an in-depth discussion with you to chart the future course of our cooperation.

The international situation today remains complex. Although the trend towards a multi-polar world and economic globalization is gaining momentum, and some positive signs of economic recovery have emerged, uncertainties and destabilizing factors still exist. Under these conditions, it is crucial for all countries, be it developed or developing, to enhance their policy coordination and cooperation to ensure stable recovery. While maintaining a steady growth of its own economy, China is ready to work closely with all other countries in the spirit of solidarity, so as to boost the recovery of the global economy.

China and the CEE countries are all at a crucial stage in their growth mode transformation. With a traditional friendship and no fundamental conflicts of interests between us, there is a solid foundation for expanding cooperation. Over the past few years, China and the CEE countries have deepened their political mutual trust and enhanced cultural and people-to-people exchanges. Our economic cooperation and trade has withstood the impact of the international financial crisis and the European debt issue. Last year, trade between China and CEE countries exceeded $50 billion. The China-CEE Summit has served as a platform for cooperation. As we speak, a large number of business leaders, with an unmatched level of interest in cooperation, are gathered at the Third Economic and Trade Forum between China and CEE Countries.

Here, I wish to propose a three-principle strategic framework for cooperation in six areas with the hope of bringing cooperation between us to a new height.

Three principles we should observe:

First, equality and mutual respect. The CEE countries were among the first to establish diplomatic ties with the People's Republic of China and are old friends of the Chinese people. China lives by the principle of equality with all countries, big or small, and has never wavered in its commitment to this principle. We stand ready to work with CEE countries to uphold the principles of mutual respect, understanding and support. We should respect each other's independent development paths, territorial integrity and sovereign independence, and accommodate each other's core interests and major concerns. As most of us have gone through the transition from a planned to a market economy, there is experience that we have gained that can be shared. The friendship and trust between us deserves special care.

Second, mutual benefit and common development. China and the CEE countries are at a similar stage of development with a similar level of per capita income. As emerging markets, we all face the task of developing our economy and improving people's lives. We each have much to offer one another and there is huge potential for cooperation. Thanks to the reform and opening up that began 35 years ago, China now has a fully-fledged industrial system, strong capabilities for the development of infrastructure and sufficient capital. The CEE countries, on the other hand, boast a solid foundation in science, technology and education, quality agriculture produce, well-developed manufacturing industry and service sectors, and a big market for infrastructure investment. Hence, it serves everyone's interests for China and the 16 CEE countries to nurture trade and investment and launch large-scale cooperation projects. As the saying goes, hand in hand, we walk faster. As long as we enhance exchanges and draw on each other's strengths, we will achieve common development and prosperity.

Third, common progress for China and Europe by moving toward each other. The CEE countries are an important part of Europe, and relations between China and the CEE countries are an important component of Sino-European relations. Europe is an important part of the international community and a vital force for world peace and stability. China supports the European integration process, understands CEE countries' intents to join the EU and wishes to see a united, prosperous and growing Europe. This is conducive to world peace and in keeping with the trend towards a multi-polar world and diversified civilizations. A few days ago in Beijing, Chinese and EU leaders jointly issued the China-EU 2020 Strategic Agenda for Cooperation, which mapped out a blueprint for future China-EU cooperation. This has fostered a sound environment for cooperation between China and CEE countries. Transparent, open and inclusive cooperation between us serves the interests of China and the CEE countries and of growing Sino-European relations and it is consistent with the principle guiding China-EU cooperation. It will play an active and constructive part in deepening China-EU comprehensive strategic partnership. A Europe that seeks balanced development is what China wants to see, as balanced economic growth is the only way to achieve dynamic and sustainable development. With China and Europe moving towards each other, Sin-European cooperation will enjoy even brighter prospects.

Six areas we should apply ourselves to and make great efforts for:

First, intensify economic and trade cooperation. This is an area we should give top priority to in our practical cooperation. The current overall trade volume between China and the 16 CEE countries is still quite modest, and there is a big gap between our trade, our economic strength and intents. China will work with all parties to double trade within five years. It is ready to import more quality agricultural products and other marketable goods from the CEE countries, encourage more Chinese tourists to visit Central and Eastern Europe, and address trade imbalance by various means. China would like to discuss with CEE countries the possibilities of signing an industrial investment framework agreement and encourage enterprises with a strong strength and a good reputation to grow businesses in CEE countries. We wish to give full play to the leading and exemplary role of major cooperation projects, for which China is willing to provide support in funding, technology and equipment, and in which the CEE countries are also expected to take an active part.

Second, speed up connectivity. This will help create a smooth flow of logistics and, as a result, improve economic development. CEE countries face a daunting task in building and upgrading their railways, roads, seaports and airports. China has cutting-edge technologies, equipment and rich experience in the construction of transport infrastructure and all these will be offered for a reasonable price. Moreover, there is overcapacity in some of these sectors in China. Therefore, there is a mutual need for us to cooperate in this area. We want to take the launching of the Budapest-Belgrade railway as an opportunity to advance connectivity between CEE countries, open new China-Europe land and sea transport routes, explore the possibility of setting up bonded areas and distribution centers along these routes to achieve parallel progress in southern, northern and western Europe, and build new logistics connections between China and Europe as a whole. All this will help us meet the $1 trillion China-EU trade target by 2020.

Third, enhance green cooperation. To better tackle the challenge presented by climate change and to realize sustainable development are common issues facing both China and the CEE countries. In recent years, many CEE countries have worked hard to upgrade their power stations, while in China, nuclear, hydro, wind, solar and other new energy sources have developed rapidly, and China has developed electrical equipment and technologies advanced by world standards. There is excess capacity in some of these sectors also. The Chinese Government supports Chinese enterprises in actively participating in power projects in CEE countries including nuclear power projects, and expects the relevant countries to improve their investment environment so that electrical engineering and equipment will become a new highlight of our cooperation.

Fourth, financing channels. Due to the global financial crisis and the European debt issue in recent years, a funding shortage has formed a bottleneck impeding economic recovery in CEE countries. To support cooperation with the CEE countries, China has set up a special credit line worth $10 billion, and is ready to work with financial institutions and enterprises in CEE countries so as to actively explore flexible and rule-based ways to make good use of this credit line. The $500 million China-CEEC Investment Cooperation Fund (stage one) has been launched. China has encouraged its financial institutions to launch stage two of the Fund in due time and welcomes contribution from more CEE countries. China is ready to strengthen financial cooperation with CEE countries by setting up financial subsidiaries in each other's countries and signing currency swap and settlement agreements to better serve the real economy.

Fifth, tap into potentials of cooperation at local levels. Serving the business community and promoting local development is an important objective for our cooperation. There is a strong desire and great potential for China-CEE cooperation at the provincial, prefectural and municipal levels. To create a solid platform for sub-national cooperation is another one of our goals. If we harness the advantages of local exchanges in efficiency and productivity, this can facilitate smooth and effective cooperation between us at local levels. China supports the holding of the Second China-Central and Eastern European Countries (CEEC) Local Leaders' Meeting next year with a view to provide more concrete results from local cooperation between China and CEE countries.

Sixth, enhance people-to-people and cultural exchanges. We should capitalize on our valuable traditional friendship and strengthen the bond between our peoples to enhance practical cooperation between us. The Chinese side wishes to hold regular China-CEEC Cultural Cooperation Forum, the Education Policy Dialogue and the Young Political Leaders' Forum. Efforts should be made to ensure the success of the upcoming China-CEEC high-level think-tanks symposium in Beijing and proper arrangements be made for exchange of visits by our journalists to enhance mutual understanding and perception of our peoples. China will work with the CEE countries to provide visas and facilitation for our people to travel between China and CEE countries as tourists or for work.

Since its inception, the Secretariat for Cooperation between China and CEE Countries, as the coordinating agency on the Chinese side, has provided strong support and assistance for China-CEEC exchanges and cooperation. China is ready to set up cooperation associations with CEE countries in various fields to promote synergy, take advantage of and conduct cooperation for the benefit of our people. We welcome the active participation of business associations, enterprises, civil organizations and local governments of the CEE countries on the basis of voluntarism and openness to contribute their valuable share to the cooperation.

The recent concluded Third Plenary Session of the 18th Central Committee of the Communist Party of China has made deployment to comprehensively deepen China's reform in the future. Reform in China has many thorny issues to tackle and we are determined to meet these challenges head on. We have decided to make the market play a decisive role in resource allocation and enable the government to better fulfill its due responsibilities so as to further unleash market vitality and generate greater driving force for development. Faced with grim challenges this year, the Chinese economy has achieved steady progress largely owing to the steadfast focus of the government and the tapping of market potential. Past developments have shown that the greater successes China achieves in its reform and opening-up, the more benefits the world and Europe receives from China's development.

A Chinese proverb reads, "Actions should be taken at the right moment just as a boat should set sail when the tide rises." The door to the historic opportunity of China-CEEC cooperation is now open and the blueprint of future cooperation is unfolding before us. Let us take this summit as a new starting point, seize its momentum and work together for fresh progress in our cooperation and contribute more to the growth of China-Europe relations and to the prosperity and progress of the world.