On March 18, 2003, China's new premier, Wen
Jiabao, and four vice-premiers met the press shortly after
the closing meeting of the First Session of the 10th
National People's Congress (NPC). Following is the full
text:
***
*** *** Wen Jiabao: I
would like to start by introducing my colleagues:
Vice-Premier Huang Ju, Vice-Premier Wu Yi, Vice-Premier Zeng
Peiyan and Vice-Premier Hui Liangyu. Among the four
vice-premiers, three of them are older than I am. And we are
also very fortunate to have one female vice-premier who
actually, as you can see, adds colour and life to the
podium.
Before I answer your questions, please
allow me to use this opportunity to first say a few words to
people across the country.
I want to thank the
Chinese people for the great trust you place in me. I am a
very ordinary person. I come from a family of teachers in
the countryside. My grandfather, my father and my mother
were all teachers. And my childhood was spent amid the
turmoil of war. Our home was literally burned down by the
flames of war, and so was the primary school which my
grandfather built with his own hands. The untold suffering
in the days of old China left an indelible imprint on my
young mind.
Since becoming a university
student majoring in geology, I spent 25 years working in the
geological field. A good part of it was spent in very tough
and harsh conditions. That experience taught me how hard
life could be and how demanding a job it was to build up our
country. But more importantly, that experience filled me
with confidence. I firmly believe that, be it a person, a
nation or a country, so long as they endure brave hardships
and dangers and are not frightened of fatigue and the climb
up, they will eventually reach the bright summit.
I have been working in Zhongnanhai
(headquarters of the central government) for 18 years, which
was an important period in China's reform, opening-up and
modernization. I have seen with my own eyes under the
leadership of comrades Deng Xiaoping and Jiang Zemin, China
has made remarkable achievements in its reform and
opening-up programmes and has undergone a historical
transformation. China's development is a project that is
extremely great and demanding. Only through reform,
opening-up and building socialism with Chinese
characteristics under the leadership of the Communist Party
of China (CPC) can we succeed in bringing about a strong and
prosperous China. And only by adhering to a democratic,
scientific and responsible spirit can we achieve our
objectives. I have been to 1,800 out of a total of 2,500
counties and districts in China which enables me to better
know our national conditions and our people's lives.
I know what they expect and what their
expectations are. I will live up to their trust and I will
use the confidence, resolve and strength I have gained from
the people to perform my solemn constitutional duties as
premier. I will exert all my strength and wisdom. I will
dedicate myself completely to the service of the country,
and do everything possible to live up to the people's
expectation.
Now I would be happy to answer
your questions.
Question: Over the past five
years, China has accomplished a lot. So we would like to
have your comments on the work of the previous government
and of Premier Zhu Rongji himself. And with the achievements
in the past five years, you now face a more demanding job in
developing the economy even further. So what do you think
are the major difficulties and challenges for the new
government?
Answer: The third generation of
Chinese leadership, with comrade Jiang Zemin at its core,
made an enormous and universally recognized contribution to
China's reform, development and stability, and have, through
practice, formulated the important thought of the
"Three Represents¡± which is a valuable
spiritual asset. The previous government, under the
leadership of Premier Zhu, faithfully performed their duties
and did a huge amount of remarkable work. The public was
satisfied with what they have done.
All of our
work will have to be built on what our predecessors have
achieved. We will have to be mindful of possible adversities
and be prepared for the worst. Actually, I always pay a lot
of attention to an ancient motto, that is, one prospers in
worries and hardship, and perishes in ease and comfort. Our
predecessors have already laid a very good foundation for
us. Yet, we are still faced with numerous difficulties and
problems ahead which requires innovation and creativity as
we press ahead.
The first major problem we are
faced with is the backward development of agriculture and
slow increase of farmers¡¯ incomes. This has
seriously constrained the expansion of China's domestic
demand.
Second, some enterprises face
difficulties in their business operation and the
establishment of a modern corporate system would be a
long-term task.
Third, the number of laid-off
and unemployed workers continues to increase, putting
tremendous pressure on the social security system.
Fourth is the uneven development between the
urban and rural areas and between the eastern and western
regions of the country. There are still many
poverty-stricken regions and people.
Fifth,
the financial burden is heavy, and the proportion of
non-performing assets or non-performing loans is quite high.
Nevertheless, we have already built strong
material and technological bases as a result of 20 years of
reform and opening up. So long as we have the right policies
and guidelines, I am confident that under the leadership of
CPC Central Committee, with Hu Jintao as general secretary,
we will surely overcome all the difficulties and achieve the
grand objective of building a well-off society in an all
round way.
Question: When Premier Zhu Rongji
just became premier, he said whatever lies ahead, be it a
field of landmines or unfathomable abyss, he will exert all
his efforts and contribute all his best to the country until
the last minute of his life. Compared with his working
style, what are the features of your working style?
Answer: I have a lot of respect for Premier
Zhu. He has many strong points that I need to learn from
him. As for myself, it is generally believed that I am quite
mild-tempered. But, at the same time, I am someone who has
deeply held convictions, who holds his grounds if it is
consistent with his principles and who is confident and
courageous enough to take up responsibilities. Since I
became premier, I have been whispering two lines written by
Lin Zexu (a patriotic Qing Dynasty official in the 19th
century) to myself. And they are: I will do whatever it
takes to serve my country even at the cost of my own life,
regardless of fortune or misfortune to myself.
This will be the attitude in which I will
start my work.
Question: Just now you
mentioned that the tasks for the new government will be very
daunting. True, the new government will shoulder heavy
responsibilities because it will strive to make a good
beginning in an endeavour to build a well-off society in an
all-round way. So my question is: What will be the objective
and programme for the new government in the coming five
years?
Answer: You have raised a very
important issue that, as a premier, I will have to answer
very seriously.
For once, I made an attempt to
summarize our future work in four sentences.
First, to strive to achieve one objective.
That is, to maintain steady and rapid economic growth and
continuously improve the people's living standards. To this
end, we have to ensure the continuity and consistency of
policies and continue to stimulate domestic demand and adopt
a pro-active fiscal policy.
Second, to strive
to grasp two crucial links, namely, to continue to advance
the strategic restructuring of our economy and to continue
to open China wider to the outside world.
Third, strive to tackle three major problems
in our economic life, they are: No 1, employment and social
security system; No 2, to increase revenue and reduce
expenditure; and No 3, to continue with our efforts to
rectify and standardize the market economic order.
Fourth, to advance reform in four areas. The
first area is rural reform. Rural reform includes
tax-for-fee reform, grain distribution system reform, reform
in the way farmers are subsidized and rural financial reform
as well as rural medicare system reform. The second area is
enterprise reform. Enterprise reform will be taken as our
central task in economic reform, and we are committed to
establishing a modern corporate system, while at the same
time deepening our reform in State assets management. The
third area is financial reform. On the one hand, we need to
establish and improve the regulatory system for the
financial sector. And at the same time we need to accelerate
our reform of the State-owned commercial banks, so that they
can genuinely become modern financial institutions.
Fourth is the institutional reform of the
government. The plan of the reform has been made well-known
to you all. I think this reform is actually a make-or-break
reform for the conformation of the function of the
government.
So now you are familiar with these
four sentences. In order to ensure that these objectives are
met and fulfilled, we need to follow the following
principles which can be described as: co-coordinating urban
and rural developments, east-west interaction, domestic
demand plus external opening-up, combining central and local
initiatives, balancing long-term and immediate interests,
and an appropriate degree of intensity.
To be
specific, by co-ordinating urban and rural development, I
mean that agriculture and rural development should be taken
as a priority among priorities in order to achieve a
co-ordinated development between the urban and rural areas.
By east-west interaction, I mean that the
eastern coastal regions should seize the opportunity to
accelerate development and be the first to achieve
modernization. More emphasis will be placed on the
readjustment, transformation and rejuvenation of China's old
industrial bases, and we will continue to make efforts to
press ahead with the country's western development strategy.
By domestic demand plus external opening-up, I
mean that we will continue to mainly pursue the policy of
expanding domestic demand, while opening China still wider
to the outside world by seizing the wonderful opportunity
presented with China's World Trade Organization membership.
By combining central and local initiatives, I
mean that we should bring into full play the enthusiasm of
both the central government and the localities.
By balancing long-term and immediate
interests, I mean that we will continue to pursue the policy
of revitalizing our country through science and education
and to carry out the strategy of sustainable development, so
that the Chinese economic and social development will always
be sustained.
Finally, by an appropriate
degree of intensity, I mean that we need to balance the
speed of development and the intensity of reform against the
resilience of the public, and properly handle the relations
among reform, development and stability.
Question: Correspondents from Hong Kong are
very interested to know which of the four vice-premiers will
have Hong Kong-Macao affairs in their portfolio? We would
also like to know will there be any change in the new
government's policy towards Hong Kong. At the moment, Hong
Kong runs a high fiscal deficit. And the unemployment rate
is going up. The Hong Kong Special Administrative Region
(SAR) government, as well as the residents of Hong Kong are
all trying very hard to get through the difficult period.
What measures will the central government adopt to further
support the Hong Kong SAR government and Hong Kong people to
get over the difficulties? And the last question is, when do
you plan to visit Hong Kong to encourage the people of Hong
Kong to overcome their difficulties? I'm sure you will be
most welcome there.
Answer: Thank you for your
question. Your question gives me the opportunity to extend
for the first time through media my best wishes and most
cordial greetings towards Hong Kong and Macao compatriots.
Over the past five years and more, Chief
Executive Tung Chee-hwa and the Hong Kong SAR government
have very well implemented the basic policy of "one
country, two systems¡± as well as the principles
enshrined in the basic law. As a result, they have well
safeguarded the freedoms and rights enjoyed by Hong Kong
compatriots according to law. Hong Kong has also
successfully overcame the economic difficulties caused by
the Asian financial crisis and has maintained stability and
development.
There is no doubt that, at the
moment, Hong Kong is suffering from major difficulties. The
unemployment rate is going up. And the fiscal deficit is
increasing. This has to do with the changes in the world
economic situation. It also has to do with structural
problems in the Hong Kong economy.
Nonetheless, Hong Kong's advantages are still
there. Hong Kong enjoys a strong material base. Up to now,
Hong Kong has incurred no debt, both internal or external.
And the household savings rate is higher than the savings
rate in 1997.
Hong Kong enjoys a comprehensive
legal framework. Hong Kong also enjoys advantages in its
geographical location. Hong Kong is also blessed with a
large pool of people with management expertise. So, what
Hong Kong needs now, more than anything else, is unity and
confidence.
I have every confidence in the
wisdom and ability of the people of Hong Kong. I'm confident
that, under the leadership of the Hong Kong SAR government
led by Mr Tung Chee-hwa, Hong Kong will surely surmount its
temporary difficulties.
As for the support
from the central government to Hong Kong, here, I wish to
state, in clear-cut terms, that the central government will,
as always, continue to give support to Hong Kong to ensure
its stability and development. As a matter of fact, we are
losing no time in bringing about the arrangement for closer
economic ties and trade between the mainland and Hong Kong.
Hong Kong is a splendid pearl of China. To
maintain Hong Kong's stability and prosperity is our firm
objective. It is also what the responsibility of the central
government dictates. So the central government is duty-bound
to make that happen.
I hope to visit Hong Kong
very soon. The sooner, the better.
Question:
Could you tell us what will be the preferential policies for
private enterprises? And could you also kindly shed light on
if China has any plan to widen the band in which the value
of the RMB fluctuates?
Answer: The government
has set the policy, a firm policy, to develop the non-public
sectors, including the individually-owned and privately-run
enterprises.
So long as these enterprises
operate in accordance with law, pay taxes in accordance with
regulations, and so long as these enterprises meet safety
and environmental standards, and safeguard the legitimate
rights and interests of their employees, the government will
give them support and actually encourage their growth,
because their development will be very important for the
creation of more job opportunities.
We will
ensure a level playing field. In that level playing field,
the individually owned and privately-run enterprises will
get the same treatment when it comes to market access,
taxation, loan application and import and export businesses.
You also asked a question about the exchange
rate of our currency. The practice of China now is a
regulated floating rate which is based on changes in market
demand and supply.
We integrated the two-track
exchange rate in 1994. Our rate has not remained unchanged
since then. As a matter of fact, in real terms, the value of
the RMB has appreciated against the US dollar by 18 per
cent, and has appreciated by 34 per cent against the euro.
We will continue to explore approaches and
work to improve the mechanism under which the exchange rate
is determined. Here I want to make one explanation: a strong
and stable RMB yuan is not only in China's own interest. It
is also a blessing for Asia and the world at large.
Question: We have seen the following two kinds
of opinions in overseas media. First, they believe that
China has accomplished a lot in economic reform. By
contrast, the pace of political restructuring seems quite
slow. And the other view is that as the anti-corruption
campaign gets more intensive in China, it only serves to
detect more corruption cases involving officials of even
higher rank, who accept even bigger bribes. What's your
comment on these two reports and what measures will the new
government come up with to further deepen political
restructuring and to build a clean, honest, diligent and
efficient government?
Answer: Advancing
political restructuring is the firm objective of our Party
and government.
We have always approached the
subject of political restructuring from two major
perspectives. One is what is socialism and how to build and
improve socialism, and the other is what kind of Party to
build and how to build it.
The basic objective
is as follows: We will develop socialist democracy, improve
the socialist legal system and run the country in accordance
with law. And eventually ensure the people's role as masters
of the country.
This government plans to push
forward political restructuring in three aspects.
First, establishing a scientific and
democratic decision-making mechanism. Before we make any
major decisions on big economic issues or economic projects,
we would seek opinions and views from officials, experts and
the general public for a thorough debate. In this way, we
can have a democratic decision-making mechanism.
Second, law-based administration.
Government departments and civil servants must
perform their duties in accordance with the provisions of
the Constitution and law, and act within the bounds of laws
and regulations.
Third, democratic
supervision. The governments will willingly subject
themselves to supervision by the People's Congresses,
democratic supervision from the Chinese People's Political
Consultative Conference and the supervision from the general
public and media.
Only when the public are
asked to supervise the government, the government cannot
afford to slacken its efforts. Only when every person
assumes his or her responsibility can we ensure the vigour
and vitality of government.
In the past few
years, we have accomplished a lot in our anti-corruption
efforts. Yet we still have to admit that, at present,
corruption remains a quite serious problem. At a time of
economic structural transition, this problem is especially
serious in some areas.
The new government is
prepared to step up anti-corruption efforts in four aspects.
First, strictly enforce discipline in the
civil service. Second, get tough with law-breaking civil
servants with more severe punishment. Third, we will press
ahead with institutional reform. We will reform the system
of administration, the system of administrative examination
approval, the system of financial resources management and
also the system of human resource management. Finally,
subject government to increasing supervision from all sides.
Here, on behalf of the new government, I would
like to solemnly pledge that we will take the lead in
setting a good example and we will willingly accept public
supervision by the people of the country.
Question: I want to ask whether the government
will inject public funds into the four State-owned
commercial banks to help them dispose of their
non-performing loans (NPLs) and make them more competitive?
My second question is, do you have any plan to
visit Japan this year as it marks the 25th anniversary of
the treaty of peace and friendship between China and Japan?
Answer: We have been making vigorous efforts
to reduce the amount of NPLs for the State-owned commercial
banks. We set up four asset management companies which have
shifted 1.4 trillion yuan (US$169 billion) of bad loans from
the commercial banks.
But as far as the amount
of non-performing loans (NPLs) troubling the four
State-owned commercial banks are concerned, if we use the
four-category classification criteria, then the ratio of
NPLs stands at 21.4 per cent. If we use the five-grade
classification criteria, which is the common international
practice, then the ratio is as high as about 25 per cent,
and losses, actually, are quite a considerable percentage of
the NPLs.
To improve their operation, it is
necessary to give them policy support, to increase their
equity and to help them get rid of the non-performing
assets. Over the past five years, through the issue of
special treasury bonds, we have increased their equity by
270 billion yuan (US$32 billion). And as I said earlier, we
helped them get rid of 1.4 trillion yuan (US$169 billion)
NPLs. However, the fundamental solution still lies in
reform.
The key is to ensure corporate
governance and to set up a modern corporate financial
system. And the conditions must be created to turn them into
shareholding banks.
As for the China-Japan
relationship, I wish to make the following comments.
China and Japan are close neighbours separated
by a strip of water, and have had over 2,000 years of
friendly exchanges, except that in modern times the
relationship suffered tremendous twists and turns.
A proper view and handling of Japan's past
aggression against China has always served as the political
basis of the growth of bilateral ties.
We hope
the Japanese Government will abide by the three documents on
the normalization of relationship, and use history as a
mirror and look to the future.
We hope to
develop relations with Japan in all areas, including in the
field of high-level visits.
As for myself, I
hope my visit can take place in an appropriate atmosphere.
Question: We would like to know what is your
view on how we can bring about a sound interaction between
the two sides of the Taiwan Straits. In the past we have not
heard much directly from you on your perspective on the
question of Taiwan. So we would like to know what is your
perspective about Taiwan. And what will be the major items
on the agenda of the new government concerning work on
Taiwan affairs? What is your comment and what expectation do
you have on the question of Taiwan?
Answer:
Through you, I would like to extend my best regards towards
our Taiwan compatriots. The achievement of peaceful
reunification is the common aspiration of all Chinese
people, including our Taiwan compatriots.
When
Taiwan is mentioned, lots of feelings well up. I cannot help
thinking of the late Mr Yu You-jen, a founding member of
Kuomintang and a participant in the Revolution of 1911. He
wrote a poem to express his grief over national division.
He wrote such a poem:
Bury me on
the highest mountain top,
So that I can get a
sight of my mainland.
Mainland, I see none,
Tears of sorrow cascade.
Bury me
on the highest mountain top,
So that I can get
a glimpse of my hometown.
Hometown, I see
none,
But lives forever in my mind
The lofty sky is deeply blue,
The vast wilderness not seen through.
All boundless universe, will you hear me,
And this elegy of the nation.
What a touching poem he has written, which
strikes a chord in the sentiments of all the Chinese people.
The Chinese Government will continue to
unswervingly pursue the policy of peaceful reunification on
the basis of "one country, two systems¡±. We
will seek an early resumption of dialogue and negotiation
between the two sides on the basis of the one-China
principle. We are against Taiwan independence. We oppose
Taiwan independence. We will continue to support more
economic and cultural exchanges between the two sides. We
want to bring about an early achievement of the three direct
links. We hope to make bigger progress in the process
towards peaceful reunification.
Question: I
hear that in the latter half of this year you are going to
pay a visit to Russia and have talks with your counterpart.
Will there be any change in the relationship between China
and Russia? What is your comment on the Shanghai
Co-operation Organization?
Answer: China and
Russia share a common border of 4,000 kilometres. It has
been the fundamental interest of our two peoples to develop
good neighbourly and friendly relations. The relationship of
strategic co-operation and partnership between us has seen
further development in recent years and enjoyed a favorable
momentum of growth. The Treaty of Good-Neighbourliness,
Friendship and Co-operation, which was signed recently, has
laid a legal foundation for the long-term steady growth of
such a relationship. Long-term plans have already been
mapped out for the exchanges between the leaders of the two
countries and for the development of our friendship in
various fields between our two countries. So I am sure in
the future our relationship will continue to grow steadily.
We will continue to give play to the role of Shanghai
Co-operation Organization and we will step up consultation
among the members of this organization on major
international issues, so as to make China's due contribution
to the maintenance of world peace and promotion of common
development.
Question: Could I have your
comment on the latest development on the question of Iraq?
Answer: As premier of this large country with
1.3 billion people, what I care most about is the stability
and development of the country. And I know so well the
stability and development of this country have not been easy
to come by.
The end of the 1980s and the
beginning of the 1990s saw a highly volatile international
situation. The Soviet Union disintegrated, Eastern Europe
changed dramatically, and political turbulence also occurred
in China. The Party and the government relied firmly on the
people, took resolute measures and stabilized the domestic
situation. And we also further advanced our reform,
opening-up and built socialism with Chinese characteristics.
The tremendous achievements we have scored over the past 13
years have fully proved that stability is of vital
importance.
On the question of Iraq, China's
position has been consistent, and we adopt a responsible
position. China stands for a peaceful settlement of the
Iraqi issue within the UN framework through political means.
Every effort should be made to avoid war. UN resolution 1441
must be comprehensively and effectively implemented.
Inspection work should continue. At the same time, China
holds the view that the Iraqi Government should strictly and
effectively abide by the relevant UN resolutions. We believe
the Iraqi side should be active in co-operating with the UN
agencies to make the work of inspection a success and to
destroy all weapons of mass destruction. Now, with regard to
the situation in Iraq, the arrow has already been placed on
the bow. It is a touch-and-go situation. However, so long as
there is still one gleamer of hope, we will not give up our
efforts for a peaceful and political settlement.
Question: The rural fee-to-tax reform will be
expanded across the country this year. You once said that
China would definitely be able to break the vicious cycle of
the law of Huang Zongxi, which means in history, tax reform
aimed at reducing farmers¡¯ burden always ended up
exacerbating their burden. My question is how can the
current tax-for-fee reform break such a vicious circle?
Answer: I have already talked a lot about this
subject. So here I only want to make two points. First, the
essence of this reform is to reform the certain links in the
rural superstructure that do not serve the development of
productive forces. The most important work is to downsize
the institutions. In the Book of Learning in China it talked
about the way to accumulate wealth. There are many people
who produce, there are very few people who consume. And
people who work very hard to produce more financial wealth
try to be economical when they spend. In this way wealth is
accumulated. However, the situation today in the countryside
is just the opposite. There are very few who produce, while
there are a lot who consume. And people do not work very
hard to create more financial resources. But on the
contrary, they order around the sense as much as they wish.
For instance, in a county with a population of only 120,000
to 130,000 people, 5,700 people live on tax
payers¡¯ money, that is on the government payroll.
So I think to find a fundamental way to reduce
the burden of farmers we need to cut down the size of
institutional functionaries and to sack the people who are
not necessary. At the same time, we must increase financial
support to the countryside. Our objective is that we want to
ensure that the farmers are not asked to pay taxes that they
are not entitled to pay. But I know it might take some time.
This year we have adopted a new policy. For the additional
financial resources earmarked for the undertaking of science
and technology, education, culture, health care will mainly
find their way to the countryside.
Question:
Mr Premier I would like to ask you to comment on the
ultimatum the US president yesterday issued to the Iraqi
President. Do you agree that it is a strong violation of
international law and the sovereignty of the state? Can you
comment on the Chinese policy on the Middle East?
Answer: The Middle East has always been the
focus of attention not only of the Chinese people but people
of all other countries. Of course, the headline news now is
the situation in Iraq and the problem between Palestine and
Israel. I have taken note of the address by President Bush
which he delivered at nine o'clock this morning Beijing
time. China's position is a clear-cut one. We insist on
continued efforts to seek a peaceful solution to the
question of Iraq through political means. In our view, UN
resolution 1441 is consistent with the principles of the UN
Charter. Therefore, all countries should adhere to this
resolution.
We have always been deeply worried
and concerned about the conflict between Palestine and
Israel. We sincerely hope that their conflict can be
resolved peacefully through political dialogue between the
two sides. We hope the two sides can co-ordinate their
efforts with the co-ordination efforts from various sides in
the international community and comply with the relevant UN
resolution including the principle of land for peace. The
flame of war is the last thing we wish to see in the Middle
East. A peaceful and stable Middle East will serve the world
well.
Question: Do you have any plan to allow
the establishment of private banks? And when are you going
to fully liberalize the exchange rate regime? When would you
let the State-owned commercial banks transfer a large
percentage of their non-performing loans to the four asset
management companies?
Answer: Your question
reminds me of my visit to Bank of England in the year 2000,
the central bank of the United Kingdom. I discovered that
the building of the central bank of UK has many gates or
doors but very small windows. Through the visit, I have
gained more knowledge about the history of the development
of the financial sector in the United Kingdom over hundreds
of years.
In comparison, China only has a
history of more than 10 years from the day when banks were
regarded as cashiers of the government to the objective to
turn banks into financial institutions in the real sense.
Actually China has already had shareholding banks which
mainly are financed by funds from the social sectors. For
instance, the Minsheng Bank. As we improve our regulatory
capability, inevitably there will be many different forms of
ownership in the financial institutions in China. But of
course this will take quite some time before that happens.
Question: According to people who know you
well, you believe in facts and statistics. Could you tell me
what are the figures about China's current situation that
satisfy you most and that worry you most? What is their
significance? Could you tell us what do you expect China to
be like in five years?
Answer: The former
Swiss Ambassador to China once said my brain was like a
computer. Indeed, many statistics are stored in my brain.
Some make me happy, some make me worried. Some figures are
very encouraging to me and make me happy. For instance,
since the beginning of reform and opening up, China has
averaged an annual increase rate of gross domestic product
(GDP) at over 9 per cent. In the recent five years, although
there was the financial crisis in Asia, our GDP still
maintained a growth rate at 7.7 per cent annually. And last
year, the GDP grew at a rate of 8 per cent. And also I am
very happy about the figure relating to the size of foreign
exchange reserves. The amount is US$300 billion.
There are some figures maybe the
correspondents do not know so well. For instance, China has
a workforce of over 740 million people, but for the
developed economies, European countries and America
combined, their workforce stands at 430 million. Every year,
we have an additional 10 million new workforce and the
number of laid-off and unemployed workers stands at about 14
million. The number of migrant workers who seek job
opportunities in cities normally caps around 120 million.
China is under tremendous pressure over
employment. Our population is 1.3 billion, out of which 900
million are farmers in the countryside. More than 30 million
farmers are still living under the poverty line. Even for
those who have been lifted above the poverty line, their
lives are at a low level. Per capita income for them is only
625 yuan (US$75). If we substitute the benchmark for the
poverty line with an increase of 200 yuan (US$24), then the
total poor population will be 90 million. The gap between
China's East and China's West is very, very wide, maybe I
can offer you some figures to help you understand the
concept even better. The GDP from five to six provinces in
the coastal areas accounted for more than half of China's
total GDP.
A number of problems have been
reflected, as I figured. We need to work to solve problems
in the countryside and for poverty-stricken farmers. We need
to solve problems for the laid-off and unemployed workers by
creating job opportunities. We should also settle the
problem of poverty as well as the gap between the east and
west. Therefore, it is not an easy job at all to be a good
premier.
If you ask about my feelings now, I
feel that the responsibility on my shoulders is extremely
great.
Question: You spoke of the experience
of war in your childhood, I suppose you also went through
the "cultural revolution?(1966-76) when you were in
your 20s. How did these experiences influence the way you
deal with China's domestic and foreign affairs problems?
Particularly on Iraq, does that make you an anti-war
activist? Do you approve of or oppose the looming war in
Iraq?
Answer: More than 50 years have passed
since the People's Republic of China was founded in 1949. We
had a lot of glorious successes, we also suffered setbacks
and the "cultural revolution¡± was one such
major setback.
But I always firmly believe
that socialism is like a big ocean. And since it is an
ocean, it will never dry up. All rivers enter the ocean. So
long as we absorb and emulate all the fine results of human
civilization, we will be able to consolidate and improve
socialism. Certainly it will last for a long time. It will
last a hundred, or even hundreds, of years.
On
the question of Iraq, I already said that China stands by
its principles and China's position is formed in accordance
with the need of peace and development throughout the world
and also in accordance with China's own fundamental
interests.
China maintains that Iraq should
destroy weapons of mass destruction thoroughly.
At the same time, we hope for a political
settlement with peaceful means to avoid the adverse impact
of the war on the Middle East and the world as a whole.
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