Subject: Premier Wen Jiabao meets with Overseas Delegates Attending Annual Meeting of China Development Forum.

On the afternoon of March 22, 2010, Premier Wen Jiabao of the State Council met in the Great Hall of the People with the overseas delegates attending the 2010 annual meeting of China Development Forum. The two sides held an in-depth conversation on such issues as the world economic situation, especially China's continuous efforts of coping with the international financial crisis, maintaining stable and relatively fast economic growth, speeding up the transformation of economic development mode and promoting international economic and financial cooperation. Premier Wen answered questions raised by overseas delegates.

I. Concerning foreign investment and sustainable economic growth of China

Chair of the Board and CEO of DuPont Ellen Kullman asked the question on how the Chinese government is going to use the advanced technologies including biotechnology to promote its future sustainable economic growth.

Wen said that we welcome multinational companies to invest in China. The real economy in China is most heavily impacted by the financial crisis. However, some companies have survived the difficulties and developed further thanks to their technological strength and talented employees. Multinational companies play the major role in coping with the economic crisis and recovering the world economy. Reviewing the past, the several major world economic crises were usually followed by major technological changes. It is precisely technological revolution that drives technological breakthroughs, helps overcome economic crisis and fuels economic development.

Our hope for the future of Chinese economy relies on scientific and technological progress, especially the new and high technologies including biotechnology and life sciences. There is no boundary to the development of biotechnology and life sciences which are closely linked with human survival and indispensable to people's daily life. China has a large population, and biotechnology and life sciences enjoy great development and market potential here. China is willing to strengthen cooperation with companies all over world which have advanced technologies. The Chinese government will create opportunities for you and also ask you not to loose those opportunities, said Wen.

II. Concerning climate change and emission reduction

London School of Economics and Political Science Professor Nicholas Stern asked whether China sets higher targets of energy efficiency and emission reduction in the "twelfth five-year" plan.

Wen said that the issue of greenhouse gas emission is mainly the result of industrialization of developed countries over more than 100 years. A developing country like China does not have many cumulative emissions or per capita emissions. As a responsible developing country, we sincerely raise our own targets of emission reduction. China will never follow the old path of developed countries of pollution first and treatment second. Energy efficiency and emission reduction, as a major strategic policy, runs throughout the "eleventh five-year" and the "twelfth five-year" plans and future development process as well. In the "eleventh five-year" plan, our target is to cut the energy consumption per unit of GDP by 20% within five years. We have paid a heavy cost for this target. We have reduced iron & steel output capacity by nearly 100 million tons, small thermal power capacity by 60 million KW and cement capacity as well over the past four years, which has posed serious pressure on employment.

We insist on the principle of "common but differentiated responsibilities". Our emission reduction target is independently set and binding. It is approved by the National People's Congress and subject to evaluation. At the Copenhagen Climate Conference, on behalf of the Chinese government, I solemnly announced the target of reducing China's carbon emission intensity by 40-45% in 2020. We will integrate this target into our "twelfth five-year" plan. China's target of emission reduction is not attached to any conditions and we will strive to do even better.

III. Concerning trade protectionism

Morgan Stanley Asia Chairman Stephen Roach said there are wide consensuses on two issues. First, countries should avoid falling into the trap of trade frictions and protectionism; second, China should accelerate the change of economic development mode. What is your opinion on the two issues?

Wen said that like many countries in the world China advocates free trade. Only with free trade can we maintain economic dynamism, world harmony and diversity of life. I'd like to take this opportunity to convey a message to the international community that China never seeks trade surplus and on the contrary will try its best to expand imports. It is the direction of our long-term efforts to keep the basic balance of international payments. China's economic growth last year was mainly driven by domestic demand. Our trade surplus is decreasing steadily and we have already had trade deficit in early March this year.

As early as before the international financial crisis, I have pointed out the Chinese economy has uncoordinated, unbalanced and unsustainable problems, said Wen. Although in general China has performed relatively well in the fight against the crisis, many problems have been exposed. This crisis is in fact a challenge to China's economic development mode. I used "urgent" to describe our task of changing economic growth mode in the Government Work Report. The change of development mode should cover the following aspects: stick to the expansion of domestic demand as a long-term strategic policy without wavering; narrow down the urban-rural gaps and regional disparities and expand household consumption; speed up the development of service industry, focus on the development of emerging sectors of the secondary industry, seek stable development of the first industry and consolidate the foundation role of agriculture.

Wen said that to change the development mode is a long-term and arduous task. The 2 million unemployed citizens make the US government very upset, but China faces the unemployment pressure of 200 million instead of 2 million. There exist big gaps between rural and urban areas of China. Yesterday I just visited China's southwestern arid area in Yunnan and still saw the picture of "a yoke of two cattle for tilling" there. This will influence China's sustainable development. We will give priority to changing the development mode when formulating the "twelfth five-year" plan.