Your respected Chairman Mr. Rasmy G. Hkoury,
Respected members of the Rotary Club,
Distinguished guests, Ladies and Gentlemen:

Today invited by Mr. Rasmy Hkoury I feel greatly honored to make a speech at this well-known Rotary Club. As you may know I came here just 6 months ago. It is not a long time for sure, but I have already had a lot of feelings. The title that Mr. Sakka gave me is "Chinese lessons to Jordan" or "The China Model". I have to say they are very challenging and difficult for me. I know that many of you present are business elites. Therefore today I want to mainly focus on the Chinese economic growth lessons and the prospects of China-Jordan economic and trade relations. I hope my speech will not fail your expectations.

I believe that every one present here must have known more or less about China. And I am sure that probably most of you have been to China. It is true that China and Jordan are two countries of vast differences. Let me prove myself with some figures. The population of China is about 6 times of that of the Middle East region and about 220 times of that of Jordan. The area covering China is about 107 times of that of Jordan. Nevertheless, behind these figures, we can still find many common features of our two countries. That is, we both belong to the developing world. The priority for both of us is economic development. We are both peace-loving countries and are committed to preserving and creating a peaceful environment of development. We are both faced with the opportunities and challenges of global economic modernization. In one word, our external environment and the internal needs are the same. That is why I believe that on the issue of development, we boast of lots of common points and that is the reason why Mr. Rasmy Hkoury invites me to be here.

Now please allow me to talk about the Chinese economic growth. In 1978, we embarked on the reform and opening-up policy. Since then, we enjoyed 25 years of fast economic development, which people usually describe as "China miracle". Let's use some figures to manifest. In the past 25 years, the average economic growth rate reaches 9.4%. Last year, the GDP climbed to 1.4 trillion US$. The GDP per capita has reached 1090 US$. The economic aggravate volume has ranked 6th of the world. We have 403.3 billion US$ foreign reserves and the foreign trade volume has increased to 850 billion US$ ranking the 4th of the world. The main reason behind this economic growth is that we adhere to the policy of keeping the economic development as the central task while committing great efforts to reform and opening-up, properly handling the relations between reform, development and stability and positively promoting and coordinating material and spiritual development. The main lessons and experiences are as follows:

1. Maintaining the right direction and intensity of macroeconomic regulation and implementing the proactive fiscal policy and the prudent monetary policy

To develop the socialist market economy, we must strengthen and improve macroeconomic regulation. In exercising the regulation, we must focus on ensuring a sustained and rapid growth of the economy, be alert to changes in the international and domestic economic situations, and improve our ability to predict and cope with them effectively. The most important measure we took in response to the grim international economic environment and the weak domestic effective demand is to resolutely shift the focus of our macroeconomic regulation from the appropriately stringent fiscal and monetary policies aimed at checking inflation to the proactive fiscal policy and prudent monetary policy to expand domestic demand and curb deflation. At the same time, balancing accounts by always keeping expenditures within the bounds of revenue is an important principle we should follow in our economic work. The proactive fiscal policy we followed during the past few years and the issuance of long-term construction treasury bonds were special policies implemented under special circumstances. We funneled the capital raised from long-term construction treasury bonds primarily to infrastructure development, and incorporated this into the readjustment in industrial structure, technological renovation of enterprises, development of science, technology and education and improvement of the ecological environment. In doing so, we paid particular attention to the needs of the central and western regions. Management of the projects financed by treasury bonds was tightened to avoid redundancy and inappropriately high standards and to ensure better cost-effectiveness. The proper macroeconomic regulation and fiscal policy we adhered to were effective in facilitating rapid economic growth and cultivating and expanding sources of government revenue. 

2. Unswervingly taking economic restructuring as paramount and working hard to improve the quality and efficiency of economic growth

Development is the fundamental principle, and the key to resolving all problems China is facing. We have been steadfast in making comprehensive readjustments to the industrial structure and coordinating economic development between regions and between cities and the countryside. We grasped the key link of readjusting the industrial structure. First, we strengthened infrastructure, especially the development and construction of water irrigation, energy and transportation mega-projects. In developing infrastructure, we have followed the principles of unified planning, stress on key projects, rational project distribution and high quality. Stringent control was exercised to block new projects in processing industries and avoid redundancy in low-level development. Second, we energetically developed high and new-tech industries, the IT industry in particular, and vigorously promoted IT application to our national economy and society. We have carried out more than 1,000 demonstration projects in this regard, enabling us to bring over a short time a number of major proprietary scientific and technological achievements to industrial production. The role of high and new-tech industrial zones and industrial parks was fully exploited. Vigorous efforts were made to develop service providers for industrial application of high and new technologies. Third, we worked actively to renovate and upgrade traditional industries. We supported massive technological renovation and structural readjustment in key industries, key enterprises and key product lines by allowing interest discounts on treasury bond loans and simplifying the clearance procedures for technological transformation projects. Many large enterprises upgraded their technology and increased their competitiveness through self-reliance and strenuous efforts. At the same time we used economic, legal and necessary administrative measures to close a large number of enterprises that produced shoddy goods, wasted resources, seriously polluted the environment or were unsafe for production. This eliminated large quantities of old equipment and many obsolete technologies and production processes, and reduced the excessive production capacity. Fourth, we worked hard to develop service industries. Wider market access, a better business environment and the introduction of modern management and technologies have enabled our traditional service industries to develop further. 

3. Steadfastly giving priority to solving the problems facing agriculture, rural areas and farmers and consolidating the position of agriculture as the foundation of the national economy

Problems facing agriculture, rural areas and farmers have a crucial bearing on the country's reform, opening up and modernization drive, and we should never overlook them or slacken our efforts to address them. We gave top priority to agricultural development, rural economic health and increasing farmers' income in our economic work and devoted a great deal of attention to them.

First, we advanced structural readjustment in agriculture. Through policy support and improved information and technical services, the government guided farmers to grow crops and select crop varieties according to market demand, developed animal husbandry and aquatic farming and readjusted the location of agricultural producing areas. Energetic efforts were made to extend "companies plus households", "production on orders" and other methods of industrialized agricultural production and help large numbers of farmers to enter the market. At the same time, we took advantage of the abundance of grain to return more farmland to forests. These efforts have stimulated the restructuring of agriculture and directly increased farmers' income. Second, we deepened the reform of the grain and cotton distribution systems. The fundamental orientation of this reform is to let market forces direct the buying and selling of grain and cotton. In taking specific reform measures, we have proceeded sure- footedly, mindful of the realities and taking into account the farmers' interests and preservation of the agricultural productive forces. Third, we carried out experimental reforms of taxes and administrative charges in rural areas. The experiment has resulted in an average of 30 percent reduction in the burden on farmers. Fourth, we increased investment in agriculture and the countryside. In these five years, the central government allocated a total of 50 billion US$ to support rural production and various agricultural undertakings, a rise of 22.3 billion US$ compared with the previous five years. Fifth, we intensified efforts to help the rural poor improve their lot through development. The central government spent a total of 60 billion US$ on poverty alleviation and work-relief schemes, and provided 93 billion US$ in discount interest loans for poverty alleviation, both figures being significant increases from the previous time. Persistent efforts were made to coordinate poverty-alleviation programs of the country's eastern and western regions. Through years of exploration, we have found a road of poverty alleviation through development by proceeding from China's realities. Sixth, we provided guidance to ensure a proper and orderly movement of rural labor. Surplus rural labor moving to non-agricultural industries and to cities and towns is an inevitable trend in industrialization and modernization. In implementing our urbanization strategy, we have made vigorous yet cautious efforts to develop small cities and towns. We encouraged farmers to take up temporary or permanent jobs in cities.

4. Steadfastly carrying forward the reform of state-owned enterprises and effectively strengthening reemployment work and development of the social security system

First, we accelerated the development of the modern corporate system. In line with the principles of "clearly established property right ownership, well defined rights and responsibilities, separation of enterprises from government and scientific management", vigorous efforts were made to carry out reforms aimed at introducing the standard corporate system and the joint-stock system and improving corporate governance. We accelerate the reform especially in the fields of electricity, telecommunications and civil aviation and the reform in the areas of banking, stock exchange and insurance is also carried out in a steady and sound way. We deepened the reform of enterprises' internal systems for distribution and human resources and labor employment management and established incentive and disciplinary mechanisms. At the same time, we encouraged eligible large state-owned enterprises to get listed after the stockholding system was established. 442 additional state-owned or state-holding enterprises were listed in and outside China; they raised 90 billion US$, including US$35.2 billion raised abroad. Second, we established the mechanism of selection whereby superior enterprises will prosper and inferior ones is eliminated. With the strategic readjustment in the layout of the state-owned sector of the economy and the reorganization of state-owned enterprises, we encouraged large companies and enterprise groups with a competitive edge to grow bigger and stronger, so that they will become key pillars of China's national economy and main participants in international competition. Third, work was done to reduce the burden on enterprises and free them from historical baggage. The four financial asset management companies, set up as part of the reform to dispose of bad assets of the state-owned commercial banks, selected 580 eligible large and medium-sized state-owned enterprises for their debt-to-equity reform. Fourth, we made vigorous efforts to encourage innovation in enterprise management. Strong efforts were made to promote enterprise IT application, improve management of costs, capital and product quality and raise the level of enterprises' modern management in an all-round way. Fifth, we intensified external supervision over enterprises. The State Council has appointed supervisory boards to 192 key state-owned enterprises and some state-owned financial organizations and instituted economic accountability auditing for leaders of all state-owned enterprises and state-owned financial organizations. 
 
One important reason for our major progress in the reform of state-owned enterprise is that we stuck to the policy of encouraging mergers, standardizing bankruptcy, laying off and reassigning redundant workers, streamlining for higher efficiency and implementing reemployment projects, and we worked hard to promote reemployment and improve the social security system. Governments at all levels have increased their capital spending year after year on social security and reemployment.
  
5. Steadfastly opening wider to the outside world and actively participating in international economic and technological cooperation and competition

As economic globalization is gathering momentum and international competition is becoming increasingly fierce, we can make better use of domestic and foreign markets and resources and accelerate our development only if we follow the tide of world development and open ourselves still wider to the outside world. While pursuing the policy of expanding domestic demand, we have never slackened our drive to increase exports. In the second half of 1998, China's exports registered a negative growth because of the Asian financial crisis. Still, we refused to devalue the RMB and took a series of resolute policies and measures to encourage exports. We followed the strategies of market diversification and winning customers through quality, energetically opened up new markets, improved our export mix and enhanced the quality and grade of our merchandise. We also deepened the reform of our foreign trade and economic cooperation system, diversified foreign trade entities, strengthened port management and streamlined customs clearance. Thanks to these effective measures, we have overcome many difficulties and increased our exports substantially. At the same time, we imported large quantities of equipment and technology urgently needed and raw and processed materials in short supply. This has promoted our economic development and technological progress. Facts have proved that the policy decisions and measures we took to keep the RMB stable and do everything possible to increase exports are correct. We encouraged qualified enterprises, regardless of their forms of ownership, to go global, explore the international market, invest in enterprises abroad and increase exports of equipment, spare parts and accessories and labor services. Different ways of investment and cooperation were followed in light of the actual conditions of different countries. With respect to other developing countries, especially our neighboring countries, we provided them with economic and technological assistance, contracted for and invested in development projects, invested in business operations and provided interest free or low interest loans. We took advantage of the new features of the international movement of capital to actively use more funds from foreign sources. We focused on improving the quality of foreign capital use and integrated it with readjustment of domestic industrial structure, revamping and reorganizing of state-owned enterprises and development of the western region. Our efforts in the past few years to improve the investment climate, develop transport and communications facilities, improve the legal system, increase policy transparency and provide better services have all borne fruit, and this has made China more attractive to foreign capital.

6. Implementing the strategy of invigorating the country through science, technology and education, raising the nation's scientific and technological capability for innovation and improving the overall quality of the population.

Developing science, technology and education is a task of paramount importance for economic revitalization and the modernization of the country. Spending on science, technology and education rose considerably. Conditions for scientific research were improved markedly, accelerating the country's scientific and technological innovation. Reforms of the science, technology and education systems were deepened, and efforts were redoubled to promote their integration with economic and social development. Thus effective mechanisms are taking shape for application and industrial production of research findings. Through these reforms, enterprises are gradually turning themselves into a mainstay of technological innovation, and state research institutes and research institutes in universities and localities have become stronger for science and technology development. The national evaluation and incentive system for science and technology was improved, complete with a policy to consider expertise and management as factors in the distribution of income and with awards for scientists, engineers, managers and administrators who have made outstanding contributions. These measures have been effective in stimulating the enthusiasm of scientists, engineers and teachers. In implementing the strategy of building up the strength of the country with talented people, we accorded priority to training, attracting and utilizing professionals. We have formulated and are implementing the Outline National Program for Talented People and the Ten-Year Plan for Developing Talented People in the Western Region. Greater efforts have been made to bring forth talented people in public service, enterprise management and technology research, and improve systems and procedures for training and placement of people with expertise, thus creating an environment conducive to bringing up talented people in large numbers and to fully utilizing their expertise. The reform to the personnel system was deepened, with the introduction of examinations in recruitment for public service, competition for positions, job rotation, personnel exchanges and training programs. The system for selecting experts to receive special government allowances was improved. The policy of "supporting study abroad, encouraging those who complete their studies to return home and coming and going freely" was implemented. Start-up industrial parks for students who returned from overseas were established with funding to support their research and business ventures. This has brought a large inflow of students who had studied in other countries. 

7. Continuing to take the path of sustainable development and promoting a coordinated development of the economy, population, resources and the environment.

First, we redoubled our efforts to protect and improve the ecological environment. We launched projects to protect the natural forests in major forest areas and along the upper and middle reaches of the Yangtze River and the Yellow River. We systematically returned large tracts of cultivated land to forests and pastures in ecologically fragile areas. Second, we protected our resources more effectively and utilized them more rationally. Management of land, mineral, fresh water, sea, biological and other resources was improved. The overall plan for land use was formulated and implemented, and the land use management system was strictly enforced, effectively protecting farmland. We resolutely rectified and standardized the order in the management of mineral resources and put an end to unauthorized mining. Since 1999, water resources in all major river valleys have been brought under unified management. Third, we strengthened the prevention and control of environmental pollution. Efforts were concentrated on controlling pollution in key river valleys, regions, sea areas and cities. We intensified development of environmental infrastructure and brought more urban sewage and garbage under centralized treatment. We supported the development of the environmental industry and the recycling economy. We stepped up protection of resources and the environment in nature reserves, scenic areas, historical sites and tourist attractions. Public awareness campaigns were carried out to increase the people's enthusiasm for environmental protection. Fourth, we strengthened family planning work. We persisted in controlling the size of the population and raising its quality. The current family planning policy has been kept stable, and the low birth rate has been maintained.

8. Doing everything possible to maintain social stability and creating a favorable environment for reform and development

We steadfastly upheld the principle of attaching overriding importance to stability, and took great care to handle the relationships among reform, development and stability. While making giant strides in reform and accelerating economic development, we have made vigorous efforts to safeguard social stability. First, we were able to balance the momentum of reform and the speed of development against the people's resilience. In conceiving and implementing a major reform, we will fully consider if the country's financial resources, the enterprises and the people are able to sustain its impact, weigh carefully its timing, tempo and intensity, and be ready to make timely adjustments as may be needed in response to new developments and problems in the course of implementation. For major reforms, we will first experiment with projects and gradually expand to other areas only after gaining useful experience. Second, we constantly kept in mind the vital interests of the people and worked hard to solve practical problems facing the needy in their work and daily life. Third, we correctly handled the contradictions among the people arising from the new situation. Some unexpected incidents involving mass participation were handled appropriately. Efforts were made to resolve conflicts and disputes in the bud and at the lowest level. Fourth, we adopted comprehensive measures to maintain law and order. While cracking down on all kinds of criminal and economic offenses in accordance with the law, we focused our attention on such conspicuous problems as lack of la w and order in some localities. Production safety was strengthened, and the responsibility system for production safety was improved. Fifth, we made practical efforts to safeguard state security. We remained vigilant against and cracked down on all infiltration, subversion and sabotage by hostile forces at home and abroad according to law. We acted firmly against forces of ethnic separatism, violence, terrorism and religious extremism according to law. Sixth, the funding mechanism to ensure the wherewithal of procuratorial, judicial and public security organs has been improved.

9. Continuing to transform government functions and endeavoring to build a clean, diligent, efficient and pragmatic government

The establishment and improvement of the socialist market economy require separation of government from enterprises, transformation of government functions and changes in its working methods and work style. First, we carried out major reforms of government institutions, which included reorganizing comprehensive economic agencies into macroeconomic control authorities, reducing the number of industry-specific economic agencies and adjusting their functions, and strengthening law enforcement and regulatory authorities. In 1998, the State Council was downsized from 40 to 29 agencies, and a quarter of its internal departments and half of its workforce was reduced. In a socialist market economy, the government's responsibilities should mainly encompass economic regulation, market oversight, social governance and public service. The government should appropriately exercise its functions in policy-making, implementation and oversight. The transformation of government functions requires that we reform the system of administrative examination and approval. We undertook a review of the items originally subject to examination and approval, and up to now, 1,195 such items have been nullified by the State Council and still more by the local governments at all levels. Efforts were made to improve transparency of government work and support the general public and the media in their oversight of the work of the government. The government has demanded that all government functionaries be clean, diligent, pragmatic and efficient. We made unremitting efforts to combat corruption, rectify unhealthy tendencies in some departments and trade and punish according to law quite a few corrupt elements.

10. Upholding the independent foreign policy of peace and striving to improve international and neighboring environments

No matter how the international situation changes, we have always been upholding high the banner of peace, development and cooperation, unswervingly pursue an independent foreign policy of peace, adhere to the Five Principles of Peaceful Coexistence, increase friendly exchanges and cooperation with other countries, and strive to further improve international and neighboring environments. We promote world multi-polarization, advocate democracy in international relations and diversity in development models, and encourage the progress of economic globalization in a direction that benefits the common prosperity of all nations. We adhere to a new concept of security based on mutual trust, mutual benefit, equality and cooperation, and we oppose hegemonism, power politics, and terrorism in all its manifestations. We work for a new international political and economic order that is fair and equitable. We deepen our friendly cooperation with developing countries, explore new avenues and forms of cooperation, and support the efforts of developing countries to become stronger through unity. The "China-Africa Cooperation Forum" and the "China-Arab Cooperation Forum" have been established. We adhere to the policy of friendship and partnership with our neighboring countries, deepen good-neighborly and friendly cooperation with all our neighbors and safeguard regional peace and stability. We will constantly strengthen our relations with developed countries, strive to seek out and expand areas of common interest, gradually settle existing differences through dialogue and consultation on an equal footing, and facilitate the steady development of our relations with developed countries. We believe there will be no development without peace. Peace is the prerequisite of growth while growth is the result of peace. The road of growth China walked past cannot prove this more.

Certainly there is no doubt that in the process of development, the Chinese economy also faces problems and challenges. These include, among others, the excessive broad scale of investment, the big gap of income, the regional unbalanced development and the heavy burden of alleviating the unemployment. We believe these are only the difficulties on the road to development. After experiencing all kinds of blows including the economic overheating as well as slowing down, the Asian financial crisis and SARS, the ability of the Chinese government in managing the maro-economic situation has been greatly enhanced. We firmly believe that our government can overcome difficulties and promote the steady development of our economy.      

Mr. Chairman, Ladies and Gentlemen:
With the development of China, the bilateral relations between China and Jordan have witnessed all-dimensional growth, especially the quantum leap of the economic and trade cooperation. Over the past 27 years since the establishment of diplomatic ties, the trade volume of last year has increased to 525 million US$, a rise of 46.5%. China has become the third trade partner of Jordan, the first exporter to Jordan and eleventh importer. Over the past 3 years, the bilateral trade volume has increased by two-digit percentage. This momentum is on the rise still. I believe that you may have already seen that there are more and more Chinese products on the Jordanian market. What I especially want to mention here is that we not only export the general consumer products which are both cheap and good, but have incompatible advantage in the areas of medium and high level consumer products manufacturing and mega-projects construction and contract. Last year, the total foreign trade of China reaches 850 billion US$ ranking the 4th in the world, among which the trade with the west Asia and North Africa region only covers 27 billion US$, accounting 3.2% of Chinese total foreign trade and the trade with Jordan only covers less than 2%. To this, we should not feel pessimistic as this shows on the other side that we have great potential and space in enlarging our trade and economic cooperation. The Iraq reconstruction, in particular, will surely bring lots of business opportunities and benefits to your country. As Ambassador to Jordan, one of my important tasks is to enhance and promote the continuing growth of our economic cooperation. I will exert my utmost efforts to introduce and market to the Chinese audience Jordan's social stability, improving investment and business environment and the underlying vast opportunities. I believe there are going to be more and more Chinese businesses and entrepreneurs turning their eyes to the peaceful oasis of Jordan.

We would like to learn from our Jordanian friends to make up for our weaknesses in order to realize a common development and prosperity and strive to push the economic cooperation between us to a new height. I am firmly convinced that the brave and diligent Jordanian people, under the wise leadership of His Majesty King Abdullah II will carry on the past traditions, forge ahead into a new future and use your own minds to create "A New Jordan of Miracle".