The Honorable Ministers,

Members of the National Parliament,

Excellencies and Members of the Diplomatic Corps,

Distinguished Guests,

Ladies and Gentlemen,

I feel very much honored to host this reception to celebrate the 61st anniversary of the founding of the People's Republic of China. I wish to extend our warmest welcome and heartfelt thanks to all those who have long cared for China and promoted China-PNG relations.

At the same time, I would also like to take this opportunity to express to Chinese community in PNG my festival greetings of "Moon Festival", which is known as the Mid-Autumn Festival. The festival is celebrated on the 15th day of the 8th month of the Chinese lunar year which is happening to be today.

On this auspicious occasion, it gives me great pleasure to share with you some of the achievements of China.

Over the past 61 years, and especially the past 30-odd years since China started reform and opening-up, China has scored great achievements and brought about enormous changes. We have completed the historic transition from a highly centralized planned economy to a vibrant socialist market economy and from a closed or semi-closed society to one that is fully open to the outside world. China's economic strength has increased substantially.

Between 1978 and 2008, the Chinese economy grew at an average annual rate of 9.8%. Since the start of 2010, the Chinese economy has maintained steady and relatively fast growth. In the first half of this year, China recorded a GDP growth rate of 11.1% and will become second largest economy in the world by the end of this year.

Today China remains a top destination for investment by multinational companies. More than 470 of the top 500 global companies have established a presence in China. By July this year, China has received US$1.05 trillion of foreign investment in cumulative terms, ranking first among developing countries for 18 consecutive years.  FDI this year is set to surpass 100 billion US dollars, compared to 90 billion US dollars last year. For the past 4 years, China's foreign exchange reserve has ranked as the first in the world to 2.8 trillion US$, comprising more than 30% of the global reserve.

This year, we showcased the World Expo 2010 in Shanghai themed "Better City, Better Life." More than 200 nations and international organizations participated in the Expo and 70 million people from China and abroad visited it, greatly enhancing friendship between China and the world. Participants, including PNG, explored full potential of urban life in the 21st century. Furthermore, by November this year, the16th Asian Games will be held in Guangzhou, capital city of Guangdong Province.

However, as we celebrate our achievements, we are fully aware of the challenges ahead. China is still a developing country and will remain so for a long time to come. Despite emerging as an economic power, China remains far behind many countries if per capita GDP is taking into account. With the biggest population in the world of 1.3 billion, China's per capita GDP in 2009 stood at 3687 US$, ranking 103 worldwide. And the development levels of urban and rural areas and different regions remained unbalanced. There still existed some crucial problems in the economic and social development of China. We have a long way to go before China truly realizes its modernization.

China has all along adhered to an independent foreign policy of peace, development and cooperation, playing an increasingly important role in international and regional affairs. It has now entered into new types of cooperative relations and partnerships with most of the countries in the world. In this regard, the Sino-PNG relationship has set a good example for South-South cooperation.

In the past 34 years since the establishment of diplomatic ties between China and PNG, the bilateral relations have seen an all-round and steady development, with frequent exchanges of high level visits and increasingly expanding cooperation of mutual benefits in various fields. And we highly appreciate PNG's firm adherence to one China policy.

Last year, the Prime Minister Rt. Hon. Grand Chief Sir Michael Somare and H.E. Mr. Li Keqiang, Vice Premier of China exchanged official visits. We are happy to note that just in this month, there were three high-level PNG delegations in China. The Rt. Hon. Prime Minister Somare attended the Fourth Summer Davos Forum in Tianjing, and had very successful meetings with Chinese Premier Wen Jiabao and Vice Premier Li Keqiang. Minister for Public Enterprise and Minister for National Planning participated the ground breaking ceremony for Sinopec's Qingdao LNG terminal project. Minister for Commerce and Industry went to the PNG pavilion day in World Expo in Shanghai.

During the visit by Rt. Hon. Prime Minister this month, China announced a RMB 30 million grant to the PNG side. China will continue to provide assistance within its capacity for PNG's development.

The other important event in our bilateral relations this year, is the historical visit by the Chinese Navy Training Formation to PNG. China's naval voyage of friendship, peace and harmony injected new vigor into the long-lasting friendship between our two countries.

Over the past years, the Chinese Government has done its best to support and assist PNG in achieving its social developments with the implementation of a dozen of aid projects, including the Sir John Guise Sports Centre, Kandep Agricultural Technical Cooperation Project, upgrade of Papa-Lealea Road, Usino Junction-Yamagi Road, the Hagen Comprehensive Agricultural Technical Cooperation Project, the Expansion of students' Dormitory and Teachers' House of Vudal University, Reconstruction of Mathematics and Computer Building of University of Technology in Lae, the Renovation and Expansion of Government House, the Lae Fishery Processing Plant and Cold Storage project, the Wewak Sports Stadium Project, the Expansion of Students' Dormitory of Goroka University, and so on. Currently, Pacific Marine Industrial Zone Project and the International Conference Centre are both underway. It is important to point out that MCC's US$ 1.4 billion investment project of Ramu Nico mine is a win-win cooperation project between our two countries.

With joint efforts of our two governments, PNG has become the largest trade partner and investment destination country of China among the south Pacific islands countries. By 2009, our bilateral trade reached nearly 900 million US$.

This year, 26 PNG students were granted Chinese Government Scholarships to undertake degree studies in China, 8 PNGDF senior officers were enrolled for training, over 60 government officials and technical personnel of different sectors were trained for various programs. The 5th Chinese medical team will be dispatched in mid November this year to deliver medical services to local people and the 10th batch of donation of the medicines and medical instruments has already been handed over to PNG government.

This year turns out to be PNG's 35th year of independence. I would like to take this opportunity to congratulate PNG people over the social and economic take-off under the leadership of the Rt. Hon. Prime Minister and the PNG government. I believe that PNG will make more achievements in the future.

The Chinese Government always attaches great importance to strengthen friendship and cooperation with PNG. With a lot of common views in political field and a lot of complementary advantages to each other in economy, it is a collective responsibility for us to tap the great potentialities in bilateral relations. We must support and help each other in the years to come to enhance all-level exchanges, enlarge bilateral trade, investments and cooperation in agriculture, forestry, fishery, resource and energy, telecommunications, culture and education, continue our mutual support in international and regional affairs, so as to bring the relationship of our two nations to a new height.

To conclude, I wish to express my deep appreciation to every one for your kind presence and wish you enjoy a pleasant evening.

Now may I propose a toast to the friendship between China and PNG,

and to the prosperity of PNG and well-being of its people!

Thank you!