Distinguished Guests, Ladies and Gentlemen:

Good morning! The rapid development of economic globalization has become the mainstream of the current world. According to the definition of International Monetary Fund (IMF), economic globalization refers to speedy economic integration worldwide by way of international trade, technology innovation, capital flow, information network and cultural exchanges. It must rely on the realization of economic internationalization worldwide. Guangzhou, persistently marching on the road of economic globalization, is an active participant, promoter and immediate beneficiary of economic integration.

I. 

The development of Guangzhou is a history of opening up to the outside world. Being close to rivers and oceans, with a geographical advantage of being located in the middle of the East Asia, it is convenient for the flow of population, goods, capital and information. The long tradition of its opening up to the outside world constantly injects vigor and vitality to its economic and social progress.

Guangzhou is the starting point of the well-known “Maritime Silk Road” as well as the only open city that has never been closed in the Chinese history. The world’s first import and export trade law, the first customs institution and the first international airline connecting East Asia, South Asia Arabian Region were all born in Canton, a nickname for Guangzhou in the past. In 1800s, famous for its richness and prosperity, Canton ranked the 4th city in the world in terms of overall strength, becoming one of the world’s economic and trade centers.  Thanks for the opening-up strategy, the city has created economic prosperity in its history of development..

Being the pioneer of China’s reform and opening-up, Guangzhou is also the leading runner of China’s economic globalization. 20 years ago, Guangzhou became the first city in China to adopt an open economic development strategy of “foreign economy and trade-oriented economy”, making efforts to achieve optimal resource allocation impelled by “two markets, two resources”. As a result, it has become one of most vigorous cities in China. Since reform and opening-up, Guangzhou has been recorded to have a two-digit annual increase in GDP and gross industrial output value for a consecutive of 29 years, developing itself into an important base for China’s auto manufacturing, electronic information, petrochemical, bio-pharmaceutical, service and trade sectors. Guangzhou’s international development strategy based on mutual benefit also provides boundless business opportunities for investors. Many of the world’s top 500 enterprises have left a good name of business success in Guangzhou by achieving benefits at the same year of making investment or building factory. We can see that, by insisting on the road of economic internationalization, Guangzhou has created new prosperity unparallel in the history.

II.

Against the backdrop of economic globalization, the economic internationalization in all regions is closely connected to global foreign direct investment (FDI) led by multinational companies and international industrial transfer. Guangzhou is geared to international standards in aspects of factor flow, resource allocation and economic order, playing its role in promoting integration of global economy. 

First, the internationalization of commodity exchanges. As China’s vital foreign trade city, Guangzhou has established business links with 223 countries and regions, almost covering all varieties of commodities. Since China’s entry into the WTO, Guangzhou’s annual foreign trade volume has increased by 10 billion dollars for a consecutive of 4 years, with an estimation of more than 70 billion dollars this year. Among this, the electromechanical and high-tech products represented by cars, bio-pharmaceutical products, printing circuit and digital camera, all together accounted for 70 percent of the city’s total export volume.

While commodity trade prospers in Guangzhou, the international competitive edge of service trade is also improving. At this moment while I am delivering my speech, thousands of Cantonese are providing logistic support for the Procter & Gamble Company, processing electronic data for HSBC bank, doing product research and development for Amway and designing architectural software for RIB…. Guangzhou has become a new hub for world outsourcing service, depending on its strengthened service industry.

Second, the internationalization of capital investment, funding and production. Since the reform and opening-up, about 18,000 international investment projects have been set up in Guangzhou, with a contract foreign capital of over US$65 billion and actual utilized foreign capital of over US$40 billion. Nowadays, more and more multi-national corporations regard Guangzhou as a key part in their global strategic layout. The Asian-Pacific Hub of FedEx, the only overseas R&D center of Nissan Automobile in Asia, and the Software Innovation Center of IBM all settled in Guangzhou one by one in the past two years. Averagely, in every one and half a day, Guangzhou has been attracting a foreign-funded project worth of US$10 million. Till now, 160 out of the World Fortune 500 companies have settled here in Guangzhou. Besides, efforts have been made by local enterprises in Guangzhou to go global and allocate their resources across the world. By now, enterprises of Guangzhou have set foot in countries and regions as Hong Kong, Macao, ASEAN countries, North America, and EU, etc. Their business covers mechanics & electronics, computer, communications, shipping agency, port construction, architecture, fishery, gardening, upholstering and designing, etc. These enterprises participate in global economic integration by setting up overseas factory, R&D center and marketing center and overseas listing.

Third, the internationalization of economic order. Guangzhou Municipal Government has spared no efforts in establishing, in strict accordance with the requirement of the WTO rules, a unified, just and transparent market economic order which conforms to general international rules. Firstly, the reform of administrative examination and approval system has been deepened, including simplifying examination and approval items, standardizing operation procedures, carrying out fast and convenient ways of examination and approval such as concentrated approval and on-line approval, inventing processing trade network and on-line joint annual examination system. These measures have greatly increased the efficiency of government operation. Secondly, government information service system has been set up. Since six years before, when the Policy Briefing was initiated, which is the first of its kind in China; Guangzhou has made great efforts in explaining and promoting policies and regulations in time for overseas businessmen and won huge applause. Efforts have also been made to establish the public service system with the core of “Guangzhou Early Warning Platform for International Technical Trade Barrier” and perfect the security system of the fair trade. Independent innovation will be encouraged to help manufacturing enterprises increase the core competence of their products so that orderly export will be achieved.

Thirdly, efforts will be taken to build a credible Guangzhou, gradually setting up a social credit system in line with international practice, perfecting the legal supervision mechanism and establishing a standard and healthy market economic order. Take the strike against piracy as an example, the number of law enforcement officials dispatched by Guangzhou Municipal Government was 128,000 person-times. Over 4,700 cases concerning the violation of intellectual property rights were investigated and dealt with, with a worth of over RMB 200 million yuan.

III.

In this new era, adhering to the basic state policy of opening up, we will integrate our "bring in" and "go global" strategies, expand the areas of opening up, optimize its structure, raise its quality, and turn our open economy into one in which domestic development and opening to the outside world interact and Chinese businesses and their foreign counterparts engage in win-win cooperation, and one that features with security and efficiency, so as to gain new advantages for China in international economic cooperation and competition amid economic globalization.

We expect to strengthen our cooperation with multi-national corporations with a view to shape a world-class base for advanced manufacturing industry. In the next phase, the emphasis of international cooperation will be put on the following aspects: first, promotion of investment in automobile parts and accessories to support the development of four automobile groups, namely, Honda, Nissan, Toyota and Hino. Automobile R&D center and comprehensive automobile service projects will be encouraged to set up in Guangzhou to complete an integrated auto industry chain of production and service. Second, a introduction of advanced photoelectron chip and new optoelectronic displays such as TFT-LCD, as well as consumption-orientated electronic products such as auto-electronic product, communication product, computer and digital appliances, etc.

Thirdly, introduction of a batch of biota diagnostic reagent and biopharmaceutical enterprises and R&D projects on new biological medicine, especially gene medicine. Fourth, intensify the introduction of petrochemical and fine chemical projects such as polyethylene, lube and decorative chemical material. Multinational corporations will be more than welcome to move their headquarters and regional headquarters, R&D center, operation center and export purchasing centers to Guangzhou, which possess compatible industrial characteristics. We as the government will provide comprehensive support and best service.

It is our pleasure to share the opportunities gained from the enlargement and opening-up of service industry with international investors and to provide quality service with a Guangzhou style. International investors will be encouraged to cast their eyes on the modern producer services such as finance, logistics, exhibition, intermediary and innovative industry. What’s more, we will spare no effort to promote the development of the burgeoning outsourcing industry. In the guidance on supporting the development of outsourcing industry in Guangzhou, which will be issued soon, outsourcing industry will be regarded as the pillar industry for the city’s future development with unreserved supports from the government. Taking the market demand of international service outsourcing and the characteristics of the current supportive industry of Guangzhou into consideration, we will put emphasis on the development of software industry, innovative and animation industry, retail trade, finance & insurance, storage & transportation, information& consultation, R&D, designing, in which aspects Guangzhou boasts competitive advantage. 

We will take the initiative to open the greatly growing market in Guangzhou and encourage the introduction of the international advanced technologies and equipments. At present, Guangzhou is at a crucial phase for industrial transformation and upgrading and there is a great demand for raw materials, advanced equipments, key technologies and key parts. We took the lead in issuing 7 measures on promoting import by simplifying the procedures on import to shorten the time of customs clearance, and providing loans to small and medium sized enterprises so that they can introduce advanced foreign technologies and equipments. In Guangzhou Free Trade Zone, we are establishing a “one-stop” international trading platform with the functions of raw material purchasing, product trading, bonded exhibition, insurance and foreign exchange settlement rolled into one.

Being fully aware of the significance of ecological preservation, we are eager to develop the environmental protection industry by global cooperation. Efforts will be made to introduce environmental protection projects from developed countries and regions such as the US, Japan and European countries in aspects of advanced equipment, new materials, new energies, ecological agriculture and environmental protection services. Focus will be placed on introducing investments by companies specializing in manufacturing of equipments for water treatment, air pollutions treatment and solid waste processing. As a result, the industrial chain of the technological research & development, engineering designs, consultation services, and product marketing of the environmental protection industry will be developed. 

Ladies and gentlemen,

The history of the opening up policy has not only shaped an economically developed Guangzhou, but also cultivated broad-mindedness and global insights in the people of Guangzhou. We are convinced that only by actively engaging in the economic globalization can we enhance the overall strength and international competitiveness of our city; only by sticking to the principles of mutual benefits and co-win can we realize harmonic development of all regions. We will further enhance the economic internationalization of Guangzhou, embrace the harmonious integration of global economy with the rest of the world so as to create a more harmonious and bright future.

Thank you!