Chinese President Hu Jintao on Friday called on members of the Asia-Pacific Economic Cooperation (APEC) to work together to ensure the sustained economic development of the Asia-Pacific region.

Addressing the APEC Chief Executive Officers (CEO) Summit, Hu said the rich diversity, great interdependence and complementarity among the APEC members have enabled them to deepen regional cooperation and jointly respond to challenges.

GLOBAL FINANCIAL CRISIS

The ongoing international crisis has spread from some parts of the world to the entire globe, from developed countries to emerging markets and from the financial sector to the real economy, Hu said.

It is still spreading and has seriously affected the economic development and people's livelihood of all countries, he added.

"The situation is very grim," he said. "To effectively address the financial crisis, maintain global financial stability and promote world economic development are crucial to global prospect of growth and the immediate interests of all countries."

At this critical juncture, countries should enhance their confidence and coordination, cooperate closely and take prompt and effective measures, including all necessary fiscal and monetary means, to stop the spread and development of the financial crisis, bring early stability to the international financial markets, minimize the damage on the real economy, bolster world economic growth and safeguard the common interests of people of all countries, Hu added.

With a sense of responsibility, China will continue to work with the rest of the international community to enhance cooperation and preserve stability in international financial markets, he said.

China is doing its best and has adopted a number of important measures, including ensuring the stability of its banking system, providing necessary liquidity support to the financial markets and institutions and enhancing macroeconomic policy coordination and cooperation with other countries, Hu said.

Hu added it is imperative to step up international cooperation in financial regulation and enhance the early-warning and regulatory capacities.

Hu urged the international community to earnestly draw lessons from the ongoing financial crisis and, based on full consultations among all stakeholders, undertake necessary reform of the international financial system in a comprehensive, balanced, incremental and result-oriented way with a view to establishing a new international financial order that is fair, just, inclusive and orderly and fostering an institutional environment conducive to sound global economic development.

China will continue to promote the building of a sustainable international economic system, an inclusive and orderly international financial system, a just and equitable international trading regime and a fair and effective global development system, Hu noted.

BUSINESS COMMUNITY'S ROLE IN ECONOMIC DEVELOPMENT

The Chinese president also urged the business community of the APEC to play an important role in tackling the ongoing financial crisis, the worst since the 1930s.

Hu said the business community is a major player in promoting world economic development and sound and stable international economic and trade relations.

"It has an important role to play in tackling the global financial crisis and keeping the world economy on an even keel."

It is imperative to bring into play the role of enterprises, especially multinational corporations, he added.

While trying to maximize returns through market operations, enterprises should adopt a responsible attitude, pursue mutual benefit and complementarity, bear in mind the need to maintain overall economic stability and avoid risks, said the Chinese president.

CHINA'S FUTURE DEVELOPMENT

On China's future development, Hu said China will continue to follow the Scientific Outlook on Development by putting people first and making development comprehensive, balanced and sustainable.

"We will unswervingly pursue reform, improve the socialist market economy and build systems and institutions that are dynamic, efficient, more open and conducive to scientific development," Hu said.

China will follow a new path of industrialization with Chinese characteristics and transform the mode of economic growth, he said.

Instead of relying heavily on higher consumption of resources, China will achieve development by making scientific and technological progress, improving the quality of the workforce and developing innovative management, he added.

Since the beginning of this year, China has taken robust measures to address the complex changes in the international economic environment and the severe challenges of major natural disasters.

"We have strengthened macroeconomic regulation in a timely way," Hu said, adding that "the fundamentals of the Chinese economy have not changed."

"The steady and relatively faster economic development in China is in itself a major contribution to upholding international financial stability and promoting world economic development," he said.

Between January and September this year, China's gross domestic product grew by 9.9 percent and the three major demands of investment, consumption and export all grew by over 20 percent.

However, since September, with the spread and development of the financial crisis, China's economic development have run into more obvious difficulties, Hu said.

The growth rate of China's export has begun to decline and industrial production and corporate profits have been adversely affected to varying degrees, he added.

"In view of this and in order to boost economic development, the Chinese government has strengthened macroeconomic regulation in a timely way and decided to follow a proactive fiscal policy and a moderately easy monetary policy," the president said.

China has lowered the required reserve ratio, cut the deposit and lending rates and eased the corporate tax burdens, he added.

China has recently adopted even stronger measures to generate greater domestic demand, Hu said.

He said the central government has decided to invest an additional 100 billion yuan (US$14.6 billion) this year to accelerate projects related to people's livelihood, infrastructure, the eco-environment and post-disaster reconstruction.

This is expected to generate a total of 400 billion yuan (US$58.4 billion) of investment nationwide, he noted, adding that between the fourth quarter this year and the end of 2010, investment in these projects alone will reach nearly 4 trillion yuan (US$584 billion).

Implementation of these measures will give a strong impetus to China's economic development, Hu said.

Hu arrived in Lima Wednesday for a state visit to Peru and for the Economic Leaders' Informal Meeting of the APEC forum slated for Nov. 22-23.

(Xinhua News Agency November 22, 2008)