I am honored to receive the invitation from Wuxi Municipal People’s Government and participate in 2006 International Cooperation Summit for Asia-Pacific CEOs and Provincial Governors and Mayors.

I would like to take the opportunity to express some ideas on foreign investment absorption and independent innovation in China

1.        Foreign investment absorption does not conflict with independent innovation –technological innovation and development in a circumstance of globalization

2.        The need of investment and the need of market are becoming more compatible with each other-the increase of foreign investment and the new opportunities in china.

The first background is China's export especially since the entry into WTO, grows at an annual rate of 30%

The second is foreign investment in China is around 60% of the total volume of import and export.

The third background is China's labor division is in the lower end of industry chain, with processing and assembling as the main mode of business. We have many problems in the shortage of resources and environmental protection.

China put forward the idea of a scientific method of development and self innovation. They have already been highlighted in the 11th five year development. Self innovation is a system, which is not in contradictory with international trend. There are three points in self innovation. They are primitive innovation, collective innovation and re-innovation.

FDI is playing an important role in the upgrading of China's industrial structure. We have a big market share in PC, digital products and other telecommunication products. We have an intact industry sector, sound infrastructure condition and comparative labor force. All of these will add to our competitiveness

The second point is what are our new opportunities?

The need of investment is in compliance with market need. FDI is reviving after a recession. FDI investment in automobile, computers, tourism, retailing, construction, banking and transportation is increasing.

The eastern part is very competitive in absorbing FDI. In mode of investment, FDI favors merges and acquisition.

As long as we need the FDI in China, we will be passionate to innovate. We will be full of confidence and believe the future belongs to the innovators and investors.

Thank you.