Hello everyone, today I will take this time to discuss with you a few issues about the "Belt and Road." "One Belt, One Road" is not a box. Everything is put in it. Now we enlarge the "One Belt, One Road" without limit. Everything is "One Belt, One Road." There is no boundary or scope, so we have the most difficulty making predictions.

Recently, Xinhua News Agency issued a correction of the wording of a news report, specifically mentioning that the news media will no longer be allowed to use the "Belt and Road" strategy in the future but must switch to the "Belt and Road" initiative. From 2013 to now, I have preached on various occasions that everyone must talk about the Belt and Road Initiative, not the strategy, but many people are not convinced because the country has said so, and it has been said in many documents and the strategy can only be reflected high. In November 2015, I visited Australia to participate in the China-Australia high-level dialogue. The representative of Australia asked the Chinese side, China is now the second largest economy in the world, and your military expenditure is rising rapidly. Now you have thrown out another " "Belt and Road," what are you going to do in the Asia-Pacific region? I told this Australian representative that in June 2015, the Chinese government had actually released the official translation of the “One Belt, One Road” initiative, and in that statement, we also stated that the “One Belt, One Road” strategy was wrong. I said at the time that since this is an initiative of the Chinese side, if Australia wants to participate, we welcome it very much; if you say that you have not made up your mind and are not ready to participate, I can’t force you, but all of our “Belt and Road” countries are equal partners. There are many successful initiatives in the Asia-Pacific region. We say that the "Belt and Road" is China's initiative, and those foreigners have no way to question China. But now that China's international strategy and international relations experts talk about strategy every day, there will be countless foreigners in Australia who will question China: this is your family's grand strategy. What kind of benefits and national purposes do you want to achieve through this grand strategy?

"Belt and Road" Because China's past context is wrong, foreigners now have a lot of doubts about China's "Belt and Road." You can see that only the leader of Italy from the G7 countries came during this summit, and the leaders of other countries did not. Although the United Kingdom and Germany are also highly concerned about and very willing to support the "Belt and Road Initiative," the leaders did not come to prove that they still have many complicated considerations. Even for the ASEAN countries, as the fulcrum area of the “Belt and Road Initiative,” although their governments have stated their support, the attitudes of all sectors of society towards the “Belt and Road Initiative” are still relatively complicated. In the future, I hope that you will definitely talk about initiatives on various occasions and never talk about strategies.

The second question concerns the relationship between the "Belt and Road" and global governance. This issue is very confusing at home and abroad. I visited the UK with a delegation from the International Department of the Central Committee of the Communist Party of China at the beginning of last year. The first question I was asked by a professor at the London School of Economics was that your “Belt and Road Initiative” wanted to break the existing global order and create a new one. A new global rule system. As soon as I heard this, I immediately told the foreigner that my understanding was completely opposite to yours. China made it very clear that the Belt and Road Initiative does not mean starting from scratch. We want to abide by the existing global order and existing global rules. Build practical cooperation. We must explore constructive approaches and new paths for global and regional economic governance.

On this issue, some well-known experts and scholars in China spread the word in the mainstream media daily that the "Belt and Road" represents version 3.0 of globalization and that the "Belt and Road" is to create a new global order. Many countries are now highly vigilant against this kind of thing. Developed countries establish today’s global order and many global rules. If China clearly says that I want to break these things and create a new one, the consequences will be these The founders of the established order struggle and wage war against you. From the perspective of uniting as many countries as possible to participate in the construction of the "Belt and Road," we must not describe the "Belt and Road" as a decision of the creator of the global order. What exactly is the Belt and Road Initiative? My understanding is that it is a platform for development, a platform for cooperation, and a platform to tap market potential. Don’t enlarge it infinitely and make yourself a lot of enemies. In the end, China’s “One Belt, One Road” cannot be carried out.

The third question is a question that is very closely related to energy and resources. Many experts say why China wants to implement the "Belt and Road Initiative." Another point of view is that China needs to guarantee resources and energy. Many of the more than 60 countries in the "Belt and Road Initiative" were initially underdeveloped. China invested so much to dig back these countries' resources and energy. "The core goal. I hold a very cautious view on this statement and am opposed to saying this.

Before the "One Belt, One Road" initiative, from 2010 to 2013, China implemented the "going out" strategy, and resources and energy had become a very sensitive field for China in the international community. With this in mind, we just need to treat resources and energy as an industry in the "Belt and Road" and not put it on the line. My point of view is that the contribution of China's manufacturing industry will gradually decline in the future. It is now 41%, and the figure will drop to 32% in 2030. The proportion of the service industry will increase. Such an adjustment and transformation of the economic structure will decrease the appetite for resources and energy. Another factor is that China's current energy conservation and emission reduction level has improved quickly because we have the advantage of being a latecomer. I strongly suggest that when you talk about the "Belt and Road" with foreigners in the future, you should say that resources and energy are one of our cooperation areas, and don't raise it to the main issue.

The fourth problem is the problem of excess capacity. Now "One Belt, One Road" has been described by many of our experts as "One Belt, One Road" is equal to China's going out, or "One Belt, One Road" is equal to China's export of excess capacity. When I went to the UK, a famous university professor was there. He asked why China came up with the "Belt and Road Initiative" because China now has too much production capacity and a serious surplus. We have to export these to the "Belt and Road" countries. This term is very taboo on international occasions. According to the international industrial transfer law, some industries are gradually transferring from China to ASEAN, Africa, and India. This is an objective fact. I would like to remind everyone that the term excess capacity is actually a derogatory term, and it is very subjective. You tell people in these countries along the “Belt and Road” that we have excess production capacity, and sending it to your home is equivalent to eating leftovers from our home, and everyone will be very disgusted. When our leaders talked about the "One Belt, One Road" initiative on international occasions, they didn't talk about China's export of excess production capacity. They all said that China should export superior production capacity and promote international cooperation in production capacity. Everyone must pay attention to this issue.

In view of excess production capacity, my core point of view is that the "Belt and Road" does not mean going out, nor does it mean exporting production capacity. The "Belt and Road" means two-way trade plus investment, plus two-way cultural exchanges, and two-way infrastructure connectivity. Its content is complex, multi-dimensional, and multi-directional, not just representing China going out.

Finally, I would like to discuss an issue currently being debated. Many people say that China has invested a lot of money in the "Belt and Road" and invested in a lot of infrastructure. Are they throwing money and taking advantage of it? Moreover, many Western countries criticize China. Your investment in these countries increases the financial burden of the host country. Their finances may not be sustainable because their debts are too high. In October 2015, the State Council Information Office held a media briefing on the “Belt and Road Initiative.” My understanding is this: If China does not invest in the countries along the “Belt and Road,” and we buy the US dollars and foreign exchange reserves into US treasury bonds, will everyone think it is safer? Or can we protect our interests from loss? Recently, everyone has seen that China has regained its position as the largest US debtor. The purchase of US treasury bonds is equivalent to one-third of China's current foreign exchange reserves. This ratio is too high. For China, we don’t put all our eggs in one basket. Investing in countries along the “Belt and Road” is actually a way to avoid risks.

Many countries along the “Belt and Road” have very poor infrastructure. How bad is it? India’s current highways are less than 1,000 kilometers; Indian trains and express trains may also reach 100 kilometers, but they are very few. Most railways maybe 10 to 20 kilometers, which is very inefficient. Looking at Myanmar, 60% of the people do not have access to electricity. If you want to get rich, you must first build roads, including water, electricity, and communications. If these things are unavailable, entrepreneurs will not come here to invest and trade. On the contrary, if you look at the China-Pakistan Economic Corridor, the energy power stations in Pakistan are invested by the Silk Road Fund. Now that the power supply is supplied and the roads are ready to be opened to traffic, I don’t need to mobilize entrepreneurs at this time. The entrepreneurs themselves will go there to invest and deploy. , trade and investment potential can be tapped. What I mean is that only when we build infrastructure and improve its trade and investment conditions will companies go to those places and tap the trade and potential of those markets. The improvement of infrastructure is a prerequisite.

Let’s compare APEC and the “Belt and Road” platform. APEC is a closed platform. We have two understandings of the “Belt and Road” platform space. First, everyone used the concept of 65 countries at the earliest. Calculated based on these 65 countries. According to this caliber, the “Belt and Road” countries account for 63% of the global population, and APEC only accounts for 40%. However, if you look at the trade volume and economic aggregate, the “Belt and Road” is only half of APEC, and there is a very big gap. What does this gap represent? The annual trade volume between the United States and Japan, and China reaches more than 900 billion U.S. dollars, while the annual trade volume between more than 60 countries along the “Belt and Road” and China is only 1 trillion U.S. dollars, which is now evenly matched. But looking at the potential of the future, the United States and Japan do not have much potential to tap. In the future, the growth and power must come from developing countries such as the "Belt and Road." This is very important for China to vigorously promote the construction of the "Belt and Road" in the next 30 to 50 years reason.

On this platform, the current trade volume between China and the countries along the “Belt and Road” exports account for about 28% of my country’s total exports, and the proportion of imports is only 24%. If we look at investment, the capital that China has brought in from countries along the Belt and Road accounts for less than 10% of all the capital that China has brought in. The proportion of investment going out is now almost 15%. In the course of development in the next few decades, China's international trade, and international investment, including our culture's going out, will really promote the transformation and upgrading of China's economy in this process and cooperate with China's income distribution system reform, which can really increase the income of residents, improve the consumption ability of residents, and at the same time improve our cultural quality, so that China's entire economic society can move towards a sustainable development direction.

Finally, I would like to remind everyone that the "Belt and Road" has now been listed by the United Nations as an important platform for the realization of the United Nations 2030 "Sustainable Development Goals" and has been recognized by the United Nations. I did a country report on SDGs, and I felt that China is ahead of many developing countries in many indicators of SDGs. In the process of cooperation along the Belt and Road, China’s experience and China’s practices, including China’s capabilities, will help many developing countries to achieve the 2030 SDG goals together. Thank you all.