THIS year marks the 40th anniversary of China-UK full diplomatic relations. Over the past 40 years, our relations have moved forward in a positive direction. Hong Kong’s successful handover in July 1997 heralded a new era of full engagement between China and Britain. The comprehensive partnership set up in 1998 represented a new milestone in our relations. And our comprehensive strategic partnership established in 2004 marked a new high point in our relations.
　　


　　In recent years, thanks to mutual effort and joint endeavors, China-UK relations have continued to grow with strong momentum. These can be measured in five areas.
　　First, intensive high-level engagement and deepened dialogue and exchanges.
　　Since the UK Coalition Government took office, bilateral relations have made steady and solid progress. Our leaders have exchanged frequent visits and contributed to closer bilateral contact and understanding across a wide range of areas.
　　In November 2010, Prime Minister David Cameron visited China. In 2011, Premier Wen Jiabao, Vice Premier Li Keqiang, Vice Premier Wang Qishan and State Councilor Dai Bingguo paid separate visits to Britain. The two sides signed nearly US $10 billion worth of cooperation agreements.
　　Meanwhile, China and Britain have widened the channels of dialogue and communication. We have now in place the annual Prime Ministers’ meeting; the Economic and Financial Dialogue; the Strategic Dialogue; the Joint Economic and Trade Commission; the Joint Commission on Science and Technology; the Education Ministerial Summit and defence and strategic consultations. These mechanisms have enhanced mutual understanding and strategic trust.
　　Second, fast-growing economic relations and more balanced trade and investment.
　　The annual trade in goods between our two countries has increased from US$300 million 40 years ago to US $59 billion in 2011. That is an increase of almost 200 times.
　　Today, Britain is China’s third largest trading partner within the EU. And China is Britain’s third largest trading partner after the EU and America. Our two-way trade is moving toward the goal of US $100 billion by 2015.
　　For years, as a result of different industrial and trade structures, China has run a surplus in its trade in goods with Britain. The UK government and businesses are making even greater efforts to explore the Chinese market. They seek to export more to China, and as a result UK exports to China in 2011 increased by 28.8 percent year-on-year. This was faster than any other of the UK’s top 15 export markets.
　　At the same time, two-way investment flows have been fast expanding. Britain has been the largest EU investor in China in recent years. Chinese investment in Britain, which has just started, is seeing a new boom.
　　Chinese investment has become a good example of win-win economic partnership between China and Britain. The Longbridge facility of the MG automobile company is now owned by Shanghai Automotive Industry Corporation. This investment has created a new business model of “Designed in Britain, Manufactured in China and Assembled in Britain.” It has reactivated the age-old MG brand and created 400 jobs in the UK.
　　Third, productive exchanges in all areas and comprehensive growth of bilat- China and Britain have further deepened. The two sides maintain intensive high-level exchanges and dialogue.
　　Bilateral educational cooperation has made new progress with many examples across all areas of education; close exchanges between Chinese and UK universities, middle schools, primary schools and other educational institutes are underway; the University of Nottingham Ningbo campus was set up in China; China and Britain signed an action plan on education partnership, and the ChinaUK Higher Education Roundtable was held in Britain in 2011.
　　Regional exchanges between China and Britain have moved further forward. By late 2010, China and Britain had 43 pairs of cities that were twinned. There are also many productive bilateral exchanges and cooperation in the fields of science, technology, culture, health, energy and internet development.
　　Fourth, robust people-to-people exchanges and a deeper understanding between the two nations.
　　There has been a surge of interest in Mandarin learning in Britain. This is reflected in the growth of the number of Confucius Institutes and Confucius Classrooms across the country. These now number 17 and 57 respectively, higher than those in any other EU country. British contestants did extraordinarily well and won major prizes at the Chinese Bridge Chinese Proficiency Contest for university students.
　　China’s cultural events are gaining popularity in Britain. In 2011, Chinese art ensembles for the first time entertained audiences at the Edinburgh International Festival. The Peony Pavilion of the National Ballet of China and The Revenge of Prince Zi Dan of the Shanghai Peking Opera Troupe were greeted with enthusiastic response both by audiences and the media.
　　A pair of giant pandas from China settled in the Edinburgh Zoo in late 2011. They are seen as a symbol of friendship between China and Britain and will contribute to greater mutual understanding and cooperation between the two countries.
　　The high-level people-to-people exchange mechanism between China and Britain will be launched soon. This will be China’s first dialogue of its kind with any EU country. It is expected to enhance our people-to-people exchanges and consolidate public support for the China-UK partnership.
　　2012 is the London Olympic Year and also this year China will be the Market Focus Country at the London International Book Fair. We hope to seize these important opportunities to deepen understanding and friendship between our two peoples.
　　Fifth, a China-UK relationship with growing global and strategic dimensions.
　　China and Britain have more shared responsibilities and common interests in promoting global peace and prosperity. This is symbolized by both countries being permanent members of the UN Security Council and leading members of the G20.
　　


　　China and Britain have maintained close consultation and coordination on a wide range of global issues. These include international financial system reform, global trade negotiations, climate change, counter-terrorism, nonproliferation and cross-border crimes. Both countries are committed to play a more active and constructive role to improve and enhance global governance mechanisms and contribute more to world peace and development.
　　As I noted earlier, this year marks the 40th anniversary of China-UK full diplomatic relations. Forty years are an important period in one’s life. We Chinese often say, “At the age of 40, one is no longer distracted by doubts.” This reflects how a man of this age usually has rich experience and a clear sense of direction in life. Now after 40 years the China-UK relationship is moving towards a new stage. Both countries need to reflect upon this 40-year journey and plan where this relationship should go in the years ahead. Going forward, I believe China and Britain should work together in the following four areas.
　　First, mutual respect is the necessary condition for a steadily growing bilateral relationship.
　　With different social systems, history, culture, values, and development path, it’s natural for China and Britain to disagree on certain matters. But lecturing and finger pointing is not the right way to deal with differences. China and Britain need to rise above ideological differences, respect each other’s choice of development path and social systems, and recognize each other’s core interests. We need to further expand consensus, strengthen cooperation and keep bilateral relations on the right track.
　　Second, mutual understanding is the firm base of a steadily growing bilateral relationship.
　　In 2011, Premier Wen Jiabao said during his visit to Shakespeare’s birthplace in Stratford-upon-Avon: “Countries should respect the history of each other and the creation of their peoples if they are to build a foundation for lasting friendship.”
　　The West needs to know not only China’s history but also what’s going on in Chinese society today. Recognizing China’s economic success is important, but it’s also essential to understand China’s progress in political, social, cultural and other realms. More important, the institutional advantage behind China’s success should also be recognized. Only with this kind of deep mutual understanding, can we build up trust and friendship.
　　Third, deepening cooperation is the engine of a steadily growing bilateral relationship.
　　Cooperation in practical areas is an effective way to deepen common interests and economic links. China and Britain have a shared will and favorable conditions to advance their cooperation. What’s pressing now is to translate our aspiration and cooperation potential into common actions and visible outcomes. These efforts will deliver mutual benefits to our people and inject new impetus into our relationship.
　　Fourth, increased exchanges are the strong support for a steadily growing bilateral relationship.
　　A strong state-to-state relationship depends upon mutual goodwill between their people.
　　Now, there are around 120,000 Chinese students studying in Britain. That’s the largest non-EU student body in Britain. In contrast, Britain has about 3,000 students in China. Our two countries need to increase people-to-people exchanges, particularly those between our young people. Doing so will deepen our friendship and reinforce public support for our relations.
　　At present, the international political and economic landscape is undergoing deep and volatile changes. This has provided further impetus for China and Britain to strengthen cooperation. There are plenty of opportunities as the strategic policy aims of both countries overlap in more areas. For example, China is now implementing the 12th Five-year Plan and Britain has unveiled its own growth plan. Both our plans assign top priority to economic restructuring and promoting growth. And both our countries commit to strengthen economic cooperation and two-way investment.
　　What we need to do is to plan for the future of our bilateral relations from a global and strategic perspective. We should complement each other’s strengths, deepen cooperation in political, economic, scientific, educational, cultural fields and people-to-people exchanges, and strengthen communication and coordination in global and regional affairs in the interest of our two peoples and the whole world.
　　China-UK relations are at a new starting point. We have great potential to build on what have been achieved during the past 40 years and chart a successful path forward.
　　As Chinese Ambassador to Britain, I am privileged to have been assigned the great responsibility to help drive our relations forward. I believe that a strong China-UK relationship requires deep commitment from the two governments and the joint endeavor of people from all sectors of our two societies.
　　It is important to look back and celebrate the success of the past 40 years of Sino-UK relations. The chapters in the history book of these years will record we have laid a very strong foundation.
　　But our energies must be focused on looking forward. Working together, we can now aspire to even greater success. In 40 years time let the historians record that as an even more magnificent period of China-UK relations.