Full text of Chinese Premier Li Keqiang's remarks at the Fourth Summit of China and Central and Eastern European Countries (2)

Third, we need to set new examples for cooperation on production capacity. China has a full-fledged industrial system, advanced capabilities for equipment manufacturing, a large number of leading industries and quality capacity, and extensive experience in engineering design, construction and management. CEECs, on their part, are in a crucial stage of infrastructure construction and transformation and the upgrading of industrial systems, and therefore have strong demand for construction materials, machinery and other equipment. China is ready to work with the 16 countries to conduct diverse forms of two-way cooperation on production capacity. We may draw on our comparative advantages and the characteristics of our industries, and combine these efforts with connectivity cooperation, in particular the upgrading and improvement of port facilities and port areas. China's cost-effective equipment and products will help CEECs drive down the cost of purchases. Quite a number of CEECs including Croatia, Slovenia, Poland, Latvia and Bulgaria have proposed to strengthen cooperation on port development. China has put forward the cooperation initiative involving the ports of the Adriatic, Baltic and Black seas, which will focus on production capacity cooperation among the ports and industrial parks of the coastal areas of the Adriatic Sea, the Baltic Sea and the Black Sea. In ports where conditions are readily available, efforts will be made to build industrial clusters, so that in addition to increased cargo handling capacity, these ports and port areas will also become basis of industrial development. We expect our companies to be the main players in these projects. We will follow market-oriented approaches and pursue win-win outcomes. We need to step up support for such cooperation so that more projects of production capacity cooperation will emerge and become highlights of 16+1 cooperation.

Fourth, we need to keep looking for new ways for investment and financing cooperation. Financing is a weak link in 16+1 cooperation. China respects EU regulations regarding the sovereign debts of its member states. While working with CEECs to make good use of the US$10 billion special loans and the investment cooperation fund, China proposes the establishment of a 16+1 finance company to support production capacity cooperation between member states through business means. We could also explore new models such as "Internet-based e-commerce+financing" to build platforms for trade and financing that reinforce each other in the Internet era. China supports establishing RMB settlement arrangements in CEECs, and encourages Chinese financial institutions, including commercial banks, to strengthen exchanges and cooperation with regional and international multilateral financial institutions, including the EBRD, in order to provide more financial support for 16+1 cooperation. China has decided that with its largest commercial bank, the ICBC, taking the lead, and with the participation of the China Development Bank and Exim Bank, we will discuss how to participate in China-CEEC cooperation on production capacity through the business model of multilateral financial institutions. China will provide preferential financing support for those that uses Chinese products and equipment in production capacity cooperation.

Fifth, we need to promote the growth of both trade and investment. Investment and trade are the anchors of practical cooperation and have much potential to be tapped. China wants to promote trade and investment facilitation together with the 16 countries. CEECs are strong in agriculture and each has its own specialty in agricultural produce. China is pushing for breakthroughs in its cooperation in this field with Serbia, Macedonia, Lithuania and Estonia. We also hope to expand our trade in agricultural produce and food with more CEECs to promote the growth of trade in a balanced way. China supports new platforms to connect our SMEs in innovation cooperation. Next year, China will host such important events as the China-CEEC Ministerial Meeting on Promoting Trade and Economic Cooperation and the Local Leaders' Meeting. We welcome the participation of all parties in these events.

CEECs have respective strengths in the industrial sector. We welcome your companies to invest in China and conduct technological cooperation with Chinese research institutes and universities.

Sixth, we need to expand people-to-people and cultural exchanges. People-to-people and cultural interactions are the "infrastructure" for deepening state-to-state relations and the "projects of the heart" that contribute to goodwill among the people. We suggest that the year 2016 be made the year of 16+1 people-to-people and cultural exchanges to fully leverage existing cooperation platforms in education, science and technology, culture, youth, health and the media through an array of events in people-to-people and cultural interactions. We need to discuss new measures to promote and facilitate tourism exchanges through our tourism cooperation mechanism. China supports setting up health care cooperation platforms, such as a 16+1 public hospital network. We hope that more centers of traditional Chinese medicine will be opened in CEECs through cooperation to provide local communities medical service with Chinese features. China supports the building of a 16+1 think tanks network and encourages more interactions among Sinologists of the two sides.

Dear colleagues,

16+1 cooperation now stands at a new historical starting point, and the prospects ahead are only brighter. Closer cooperation among us will form synergy, like a clenching fist, to produce massive results. Our host city Suzhou is known to the world for its fine embroidery. China stands ready to work with CEECs to embroider a masterpiece of cooperation. Together, through 16+1 cooperation, we could promote better development of our countries and bring even more benefits to our peoples!

Thank you. Endi