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China's March Towards Modernity

By Mr. Tung Chee Hwa
Chatham House, London, June 19, 2008


Ladies and Gentlemen, Good afternoon.

I would like to offer my sincere thanks for your generous invitation for me to speak here today.  I am truly honored to be here.  I’m also happy to be back in the UK.  I feel a special affinity for this country because this is where I spent my formative years.  Arriving in 1954 at the age of 17, I spent the next 6 years of my life here.

I have fond memories of this country – of long walks through the beautiful countryside and of museums, castles, churches and university grounds that gave me an appreciation for this land.  I also remember the kindness and decency of the British people, and the many friendships I made during and since those years.

The UK is also where I began my love of learning – a love that I have continued to cherish all my life.  Learning about the British parliamentary system, I marveled at the impassioned debates between the Conservative and Labor parties on the great issues affecting the state.  At that time, Britain was in the process of being rebuilt from the ravages of the Second World War.  Needless to say, my education and my experiences growing up in England had a profound impact on my life.  And therefore, speaking before you, I feel quite at home and among friends.

Being Chinese, it is natural for me to love my country, and take a keen interest in her.  And I am fortunate to have had the opportunity to develop an in-depth knowledge of China, first as a businessman, then as Chief Executive of the Hong Kong SAR, and currently as Vice Chairman of the CPPCC.  Today, I would like to share with you what I know about the country.

From China’s perspective, this year, 2008, holds special significance.  This year marks the 30th anniversary of China’s reform and opening up to the outside world.  30 years ago, Deng Xiaoping launched this new direction, and, as a result, unleashed the energies of over a billion people.  It was an event that would change the destiny of China, putting it on a trajectory toward modern statehood. 

In 1976, the Cultural Revolution ended, and the country was in a state of collapse and needing to be rebuilt.  The then recently rehabilitated Deng Xiaoping decided that we needed to redress the mistakes of the past, and find a new path for the country to follow.  He emphasized, firstly, that we needed to reform.  We needed to take a planned economy and transform it into a market economy.  Second, we needed to open up.  We needed to open up our country to the rest of the world.  This was a difficult decision to make – a decision whose success or failure would determine the fate of over a billion people.  And, indeed, there was no historical precedence to which to refer to.  On hindsight, this crucial decision was full of remarkable courage and wisdom.

30 years have now passed, and the change in China has been nothing but remarkable.  China’s economy has gone from the verge of utter collapse to becoming the world’s 4th largest.  1.3 billion Chinese people have moved from abject poverty to a very much improved livelihood.  Chinese society has gone from being closed to being open.  Of particular note is the unprecedented expansion of individual freedom – freedom of thought, freedom of movement, and freedom to pursue economic opportunity.

Although much has been achieved over the past 30 years, a great deal of work still needs to be done.  Of course, of the immediate challenges, China, like other nations, needs to confront the rapid increases in food and energy prices on the global market, and the consequent inflationary pressures.  But at the same time, China is also faced with a new set of challenges as a result of the enormous changes of the past 30 years.  For example, the unbalanced nature of economic growth has increased the disparity between rich and poor, between urban and rural populations, and between coastal and inland regions.  The unbalanced nature of economic growth has also brought about huge environmental challenges, the need to improve the quality of water and air, and a way to deal with the thirst for energy and raw materials.

What path should China pursue for its future?  Responding to the challenges, critical decisions were made by the Chinese leadership last year.  China must build on the successes of the past 30 years, continue to develop its economy through further deepening of reform and opening to the world.  But economic development must be balanced and sustainable.  Rural area income must be raised, and innovation and technology must be further emphasized as the economy restructures.  The central government will need to be even more responsive to the needs of the people in providing better public services in general, and education, health care and social security in particular.

Let me now say a few words about the development of democracy and the rule of law in China.  Throughout the time, China has been developing its democratic system so that voices of the people can be heard.  Today, this democracy has evolved into what we call electoral democracy and consultative democracy.  Electoral democracy is embodied in the country’s highest authoritative institution – the National People’s Congress where members are elected directly and indirectly from across the nation.  Consultative democracy is embodied in the Chinese People’s Political Consultative Conference where those who are the best and most experienced from different spectra of the society are appointed as members.

The government’s work is being made more transparent and accountable, with greater checks and balances.  Formulation of policy and enactment of legislation will be made only after wide consultation with different sectors of society.  In addition to the internet and press, more and more channels of communication from the people to the government are being established. In the years ahead, the country will continue to develop and refine the electoral democracy and the consultative democracy.    The fact is China wants to develop a good system of democracy but China cannot just copy system of democracy from other countries.  China is developing a system of democracy that suits China’s unique culture, history, and stages of development.  In this process, we will continue to learn from countries around the world of their experiences in democracy.

The rule of law is the bedrock of a free market economy.  It is a prerequisite for a just society, and a harmonious society.  In the 30 years of reform and opening up, China has devoted its full attention to the building up of a sound legal system, by establishing an organized court system, by providing education for the legal profession, and by improving the process of law making.  However, a lot more needs to be done to change the society’s culture, tradition and behavior from its long feudalistic past.  But I believe that China’s rule of law will continue to improve with time.

Looking back, it is fair to say that in 30 years of reform and opening up, never in the history of mankind, has there been such great achievement involving such a large number of people over such a short period of time. Further more, today, Chinese people are looking forward to the future with confidence.

Ladies and Gentlemen,

We are greatly saddened by the tragic loss of life and damage to property in the Sichuan earthquake.  But the enormous grief has also united the entire Chinese people to mobilize themselves – to save lives, bring relief, and rebuild.  The way the country has come together under the government-led effort is truly remarkable.

In the days immediately after the earthquake, we witnessed an efficient and highly competent relief effort, conducted by the government with openness and transparency.  Saving lives was the priority and the only priority.  “Governing for the People” was clearly demonstrated here.  The massive earthquake, and the subsequent relief effort reflect, like a mirror, the progress that China has been making in so many of these areas.

Let me say a few words on China’s foreign policy.  The past 30 years of China’s reform and opening up has also been 30 years in which China has become more and more integrated into the community of nations of the world.  From the very beginning, the country’s foreign policy can be summarized in two words: peace and development.  Today, this policy has not changed.  Moreover, as the country reforms and opens up further to the world, China’s destiny becomes increasingly intertwined with the world at large.  This requires China to play a more active role in international affairs.  China will do this by participating actively in multilateral organizations, such as the UN, the World Bank, the IMF, the World Health Organization, the WTO and etc.

Of course, China also recognizes the importance of bilateral relationships with nations around the world, big and small.  China’s relationship with the United Kingdom is a very important bilateral relationship, which finds its roots at the dawn of the People’s Republic of China.  The UK was the first among Western nations to recognize the PRC.  In more recent history, the smooth handover of Hong Kong back to China – an act of unprecedented complexity – ushered in a new chapter in Sino-British relations.  In the last decade, China’s relationship with the UK in trade, commerce and finance; in education, culture and people to people exchanges; and in areas of sustainable develop and climate change have all expanded.

This relationship can continue to move forward making incremental gain as it has been or can make quantum gain. Today, the world faces a great many new challenges, such as nuclear weapons proliferation, terrorism, international financial order, the continued globalization of the economy, epidemics and natural disasters.  And then there are the challenges of energy security, climate change, food security and scarcity of natural resource, which are issues critical to sustainable development and growth in the 21st century.  What the world needs is the concerted effort of countries around the world, particularly by the developed countries and the large developing countries in these areas.  China is ready and willing to actively participate, together with the international community, in meeting these challenges.

In the meeting between Prime Minister Gordon Brown and Prime Minister Wen Jiabao January this year, they announced an agreement for a comprehensive strategic partnership to move the two countries forward. The announcement has put the relationship of the two countries into a higher and new level. But in my view, for the relationship really to blossom, UK needs to understand China a great deal more. The fact is China is changing and the speed of change is unprecedented. China too needs to explain herself better and to understand UK more. A major effort in these aspects will be most helpful.  A deep and lasting relationship is good for China, good for UK, and can be a force for change and a force for good to the world.

Ladies and Gentlemen,

From the year 1215, when the Magna Carta was issued to limit the powers of the English King, to the year 1688 when the Glorious Revolution began modern English parliamentary democracy, and up until today, this process of evolution and remarkable achievement in human civilization is what the world admires and what China admires.

China’s march towards modernity is ongoing.  The republic was born 60 years ago, and reform and opening up began just 30 years ago.  China, with its 1.3 billion people, is marching forward. I believe that given time, China will reach modernity, and all through this journey, will make a great contribution to humanity.

The Chatham House has a long and great reputation.  I sincerely hope that The Chatham House and its members can play a more active role in promoting friendly relations between the United Kingdom and China.

Thank you.