Address by H.E. Hu Jintao
President of the People’s Republic of China
At the 9th Meeting of the Heads of State Council
Of the Shanghai Cooperation Organization
Yekaterinburg, Russia, 16 June 2009

Mr. Chairman,
Dear Colleagues,

It is a pleasure to meet you again. I would like to thank President Medvedev and the Russian Government for the meticulous preparation and thoughtful arrangements they have made for this summit. Since the beginning of its Presidency, Russia has, through active, efficient and practical work, strongly boosted SCO cooperation in security, economic development and external relations and created favorable conditions for the sound and steady development of the organization. China highly appreciates Russia’s work.

After eight years, the SCO is beaming with vigor and vitality. It plays a stronger role in safeguarding its member states’ right to peaceful development, promoting regional security and stability and enhancing mutually beneficial and win-win cooperation. It has become one of the most influential constructive institutions in Eurasia. In the past year, SCO cooperation in various sectors grew in parallel, displaying gratifying momentum. Political mutual trust was strengthened and the foundation for the traditional friendship became more solid. An all-dimensional and multi-tiered system of security cooperation demonstrated a remarkable advantage and much achievement was made in joint law enforcement. Trade and investment grew steadily. Cultural and people-to-people exchanges, especially cooperation in disaster relief, health and tourism, were gradually deepened. The concept of friendship from generation to generation took deeper roots in people’s hearts. The establishment of the dialogue partner mechanism and the special international conference on Afghanistan were highlights in the organization’s external exchanges. China is heartened to see the achievements that the organization has made.

Dear colleagues,

The international situation is undergoing unprecedented, complicated and profound changes. Major changes are brewing in the international architecture. Countries are becoming more interdependent and the trend towards a multi-polar world and economic globalization is gathering momentum. At the same time, such problems as food security, energy and resource security and public health security are prominent. Terrorism, production and trafficking of drugs, organized transnational crimes and piracy are rampant. The international financial crisis, in particular, is still spreading and deepening, and its impact on the global economy is more acutely felt. Given the grave economic and financial situation around the world, many countries have slid into recession and they face enormous challenges in maintaining social stability.

Facing the international financial crisis, we should enhance confidence, support each other, strive to cross the stormy water safely together and emerge stronger from the crisis. We must vigorously promote practical cooperation in the political, security, economic and cultural sectors, enhance our strength and run the organization well. Only by doing so, can we effectively fight the crisis, fend off risks, promote lasting peace and common prosperity of the region and better contribute to world peace and development. I suggest member states of the organization continue to enhance cooperation in the following areas.

First, strengthen political mutual trust. A high degree of political mutual trust and high-level strategic coordination are unique strengths of the organization. We should continue to implement the Treaty on Long-term Good-neighborliness, Friendship and Cooperation, make full use of SCO meeting and consultation mechanisms at different levels, enhance strategic dialogue, coordinate policies and build consensus, so that we can work for common prosperity, regional peace and stability and a more just and reasonable international political and economic order. At the same time, we should take the approval of the Regulations on Contingency Mechanism at this summit as an opportunity to conduct closer coordination and cooperation among member states in regional and international affairs and raise the emergency response capability of the organization on major regional and international issues.

Second, deepen economic cooperation. Despite tangible achievements in economic cooperation and trade within the organization over the years, we still fall far short of the expectations of the member states and the development targets of the organization. Huge potential remains untapped. We should join hands to tackle the crisis and promote recovery of the world economy. We should effectively use the organization as an important platform, better coordinate our macro-economic and financial policies and promote cooperation of various forms among policy and commercial banks of SCO member states during a time of liquidity shortage to promote economic and financial stability of the members. We should accelerate energy, transport and communications network projects, reverse the decline of economic growth and create more jobs. We should actively promote cooperation in new industries to create new areas of economic growth. We should promote trade facilitation and maintain an open and free environment for trade and investment. China suggests that SCO member states establish a financial and economic dialogue mechanism to strengthen monetary policy coordination and China supports a meeting of SCO finance ministers and central bank governors. China proposes stronger multilateral science and technology cooperation and cooperation on clean energy, new materials and new technologies and science-to-market cooperation. Through such efforts, we may enhance productivity through scientific and technological innovation and have more means at disposal to fight the crisis.

Third, enhance security cooperation. I suggest we take advantage of the signing of the SCO Convention of Counter-terrorism to promote cooperation on joint pursuit and repatriation of suspects among member states. We should expand the security and protection cooperation model for big international events to include observer states and include them in relevant consultation mechanisms. We should conduct closer cooperation with Afghanistan, other relevant countries and international organizations to crack down harder on production and trafficking of drugs. We need to study and work out a framework agreement on fighting organized transnational crimes and implement the consensus reached among member states on cooperation in anti-money laundering and security of energy transport pipelines.

Fourth, expand people-to-people exchanges and cultural cooperation. We should step up cooperation in culture, education, health and tourism and facilitate exchanges among our young people. China has proposed that our national schools of administration conduct exchanges among themselves. We hope that member states will support this initiative. The Chinese side also welcomes more cooperation in disaster relief and early agreement on the establishment of a disaster relief center.

Fifth, remain open. China supports deeper practical cooperation in all fields between the organization and its observer states, so that observer states can take part in cooperation in counter-terrorism, the fight against narcotics, transportation, energy, disaster relief and culture and contribute to stability and development in the region. China sincerely welcomes Belarus and Sri Lanka as dialogue partners.

We appreciate Afghanistan’s efforts to participate in SCO activities over the years. China believes that in order to solve the Afghanistan issue, a holistic approach consisting of political, security and economic means should be adopted to address both the symptoms and the root causes. We are ready to work with the other member states to implement the consensus reached at the special conference on Afghanistan.

Dear Colleagues,

Facing the once-in-a-life-time crisis, China has decisively adopted a proactive fiscal policy and a moderately easy monetary policy and rolled out a package plan to boost domestic demand and promote steady and relatively fast economic development. We are energetically expanding domestic market, especially the rural market, and implementing on industrial restructuring and reinvigoration plan on a massive scale. We are vigorously advancing scientific innovation and technological upgrading, improving the social safety net and intensifying efforts to conserve energy, reduce pollution, and protect the environment. As these measures are now kicking in, we are seeing positive signs in the economic performance. Although the impact of the crisis on China’s economy remains, the fundamentals and the positive trend of long-term growth have not changed. Steady and fast economic development in China is good for SCO member states, the regional economy and even the world economy.

Here I wish to reiterate that China will honor its commitment and continue to support bilateral and multilateral project cooperation within the SCO. To this end, China will provide US$10 billion as credit support. This is part of China’s efforts to help other SCO member states tackle the crisis. In addition, China will send trade and investment promotion missions to the other member states to promote trade and two-way investment.

China is on a path of peaceful development. It will continue to pursue its independent foreign policy of peace and adhere to the policy of fostering friendship and partnership with neighboring countries. By working with all countries to meet challenges and share opportunities, we can make greater contribution to peace and development in the region and beyond.

Dear Colleagues,

Secretary General Nurgaliev and Director Subanov will have finished their terms by the end of the year. I wish to express, on behalf of the Chinese side, high regards and sincere thanks to both of them for the enormous and excellent work they have done for the organization in the past 3 years. China sincerely congratulates Uzbekistan on its taking up the 2009-2010 Presidency, and will continue to provide support and facilitation within our capacity to the two permanent bodies.

We want to work with all countries of the region in the “Shanghai Spirit”, advance hand in hand, overcome the difficulties together and strive to build a harmonious region of lasting peace and common prosperity.

Thank you!