There is no denying that China and India still have between them some difficult issues left over from history. But the rich historical experience and the broad vision, which are common qualities of big countries, serve as the basis for China and India to take a long-term view and live in amity with each other. With joint efforts in the past few years, the two sides have gradually found a way to maintain peace and tranquility in the disputed border areas, and have learned to deal with the situation in a reasonable and mature manner. Both agree that the common interests between China and India far outweigh their differences and that the two countries should enhance mutual trust rather than increasing mutual suspicion. I believe that as long as we draw on wisdom and strength on our way forward, there will be no obstacle that we cannot overcome. As long as we face the problems squarely and talk to each other with sincerity, we will eventually find proper solutions.

China is a big country that is growing and peace-loving. What we Chinese value most are "Do not do unto others what you do not want others to do unto you" and the philosophy that stresses the importance of good faith and making friends with neighbors. China is more developed than before, but it remains a developing country. Even if China becomes strong one day, it will never embark on the doomed path of seeking hegemony. We suffered immensely from foreign bullying, wars and chaos and know so well that the same tragedy should not be allowed to happen to anyone ever again.

China has a long way to go to achieve modernization. To successfully manage a populous big country like China, the top priority is to ensure the supply of seven daily necessities, namely firewood, rice, cooking oil, salt, soy sauce, vinegar and tea. In other words, we have to address the most immediate concern of our people in everyday life. The Chinese people want better education, more stable employment, more reliable social security, more comfortable housing, more colorful cultural life and national stability and prosperity. It is not easy to deliver all those to our people and modernize the country. We must focus on self-development and that calls for a peaceful international environment. We need to live with our neighbors in harmony and make friends in the world. To pursue a path of peaceful development is the unwavering commitment and firm action of the Chinese people.

China owes its rapid growth to continuous reform as well as external cooperation. Interdependence is a defining feature in state-to-state relations in this era of globalization. China is a beneficiary and a defender of the existing international order and system and stands ready to work with India and other countries to advance reform of the system. China will undertake international obligations commensurate with its national strength. We stand ready to embrace the world with a more open mind and hope that the world will view China with a calm frame of mind.

Both China and India are big countries in size and in population. Together, the populations of our two countries exceed 2.5 billion and account for nearly 40 per cent of the world's total. We are viewed as the two most important emerging markets. However, our bilateral trade volume was less than $70 billion last year. This is incompatible with the strength and status of our two countries, but it also points to the huge potential for expanding and upgrading our bilateral trade and business cooperation. This is an issue that the two sides must work to resolve together.

The world looks to Asia to be the engine driving the global economy. This would be impossible without the two powerhouses of China and India. Our two countries need to work hand in hand if Asia is to become the anchor of world peace. An Asian century that people expect would not come if China and India, the two most populous countries in the world, failed to live in harmony and achieve common development. Asia's future hinges on China and India. If China and India live in harmony and prosper together, and if our two markets converge, it will be a true blessing for Asia and the world at large. China's development promises opportunities for India, and India's development promises opportunities for China. Our common development will benefit people of the two countries and offer the world more and better opportunities.