Full Text of Chinese Premier Li Keqiang's speech to British think tanks(2)

Second, on China' s industrialization.

Industrialization is an important aspect of modernization. It took western countries over 100 years to achieve industrialization, while China has instituted a full-fledged industrial system in just a couple of decades. China now leads the world in the output of many industrial products. You are all familiar with goods "made in China" , but China mainly produces medium- to low-end products. It has to advance to a medium to high level in industrial development. Industrial upgrading will serve our joint response to climate change. It is also a natural choice for China if it is to break energy, resources and environment bottlenecks. China will pursue a new type of industrialization, advocate green and low-carbon development and step up efforts to conserve energy and reduce emissions so that Chinese products will be more energy-efficient and environment-friendly and China will achieve internally-driven growth through innovation. This will also bring huge business opportunities for the world. In the coming five years, China will import more than US$10 trillion worth of goods, and invest over US$500 billion overseas. Outbound visits by Chinese tourists will exceed 500 million. China will be happy to share its development dividends with other countries in the world.

In the modernization drive of such a populous country like China, there is no example to follow. We face a whole range of challenges and need to make hard exploration and efforts. After decades of fast growth, China' s growth has moderated to a medium-to-high speed compared with the double-digit rate in the past. Some people begin to worry that the Chinese economy will not maintain sustained growth and will head for a hard landing. I can assure you that such things will not happen, because economic growth in China is supported by urbanization and industrialization. What is more, there are big gaps between urban and rural areas and among different regions as well as unreasonable industrial structure. All these mean potential and huge domestic demand for China' s development. As long as we keep to the right direction and work hard, we will be able to maintain medium-to-high growth of the Chinese economy for a long time to come.

Since the beginning of this year, the Chinese economy has maintained stability on the whole despite considerable downward pressure. We will continue to follow a proactive fiscal policy and a prudent monetary policy. We will not resort to massive stimulus measures; instead, we will further innovate the thinking and model of macro-regulation, combine a ranged approach with a targeted approach in adjustment, strengthen anticipatory adjustments and fine-tuning, ensure economic growth will stay within a proper range between the minimum rate needed for job creation and the CPI growth ceiling to keep inflation under control. We have confidence in meeting the growth target of about 7.5% set for this year. This will also lay a solid foundation for our future development.

China' s economic aggregate has exceeded US$9 trillion. An annual growth of around 7.5%, adjusted for inflation, will be translated to an increment of about US$1 trillion, equivalent to a medium-sized economy. This is no easy job, but it will bring huge business opportunities to China and the world. I have given you so many figures, not to play a game of numbers though, but to show you that China has the condition and ability to promote balanced, coordinated, sustained and healthy economic development.

Third, on China' s peaceful development.

To achieve modernization in a big developing country like China and to fulfil the Chinese dream of great national renewal requires a peaceful international environment and stable neighbourhood. Otherwise, we cannot focus on development. This is an irrefutable truth.

The Chinese people love peace. Our ancestors taught us that we should not do to others what we don' t want others to do to us and that we must help others achieve success if we want to achieve success ourselves. This has been imprinted into the DNA of the Chinese nation and become an accepted code of conduct for the Chinese people. Expansion is not in the Chinese DNA, nor does China subscribe to the logic that a strong country is bound to be hegemonic.

The achievements China has made through development in the past three decades are attributable to an external environment of peace and stability. The path of peaceful development has benefited the Chinese people and enabled different countries to achieve win-win development. This is the one thing important we have learned from our development over the past decades and we will never give it up. China will remain committed to inclusiveness, openness, peace and cooperation even after it becomes stronger in the future.