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Home > Ambassador Liu
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· Keynote Speech by H.E. Ambassador Liu Xiaoming at the KPMG Breakfast Meeting: The Chinese Economy: What has changed and what has not?(2019-02-21)
· Speech by H.E. Ambassador Liu Xiaoming at the Reception to Bid Farewell to Minister Zhu Qin and Welcome Minister Chen Wen: Pass on the Baton of China-UK Friendship(2019-02-20)
· The Daily Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled China will bring further opportunities to the world as its economy remains robust(2019-02-19)
· Ambassador Liu Xiaoming Meets with Richard Burn, HM Trade Commissioner for China of the UK(2019-02-15)
· Ambassador Liu Xiaoming Meets with Jeremy Wright, Secretary of State for the Department of Digital, Culture, Media and Sport(2019-02-15)
· Ambassador Liu Xiaoming Attends Chinese New Year Dinner 2019 Hosted by the Cities of London and Westminster Conservative Association(2019-02-13)
· Ambassador Liu Xiaoming and Wife celebrate the Spring Festival with HRH The Duke of York(2019-02-13)
· Keynote Speech by H.E. Ambassador Liu Xiaoming at the Conservative China Group House of Commons Breakfast: Three Choices in China-UK Relations(2019-02-13)
· Speech by H.E. Ambassador Liu Xiaoming at the HSBC Chinese New Year Celebration 2019: Pool Our Wisdom to Create Prosperity(2019-02-13)
· Speech by H.E. Ambassador Liu Xiaoming at the Chinese New Year Dinner by the Cities of London and Westminster Conservative Association: Cement the Foundation for the Edifice of China-UK Relations(2019-02-12)
· Remarks by H.E. Ambassador Liu Xiaoming at the Opening Ceremony of Festival of Spring, Chinese New Year Celebration(2019-02-11)
· Ambassador Liu Xiaoming Meets with Robert Neill MP, Chair of the Parliament's Justice Select Committee, and Alan Hoo Hong-ching, Senior Counsel of Hong Kong(2019-02-09)
· Ambassador Liu Xiaoming Meets with Peter Estlin, Lord Mayor of the City of London(2019-02-09)
· Ambassador Liu Xiaoming and Madame Hu Pinghua Attend Chinese New Year Reception of the China-UK Charity Initiative(2019-02-09)
· Remarks by H.E. Ambassador Liu Xiaoming at the China-UK Charity Initiative Reception in Celebration of the Year of the Pig: Promote Cooperation through Charity(2019-02-09)
· Ambassador Liu Xiaoming met with Sir Danny Alexander, Vice-President and Corporate Secretary of Asia Infrastructure Investment Bank(2019-02-07)
· Ambassador Liu Xiaoming and Madam Hu Pinghua Attend Chinese New Year Dinner 2019 Jointly-hosted by the 48 Group Club and the China Chamber of Commerce in the UK(2019-02-02)
· Ambassador Liu Xiaoming and Madam Hu Pinghua Attend the China Lates of the Science Museum(2019-02-02)
· Ambassador Liu Xiaoming and Wife Attend the 2019 Chinese New Year Celebration Reception Hosted by Prime Minister May(2019-02-01)
· Keynote Speech by H.E. Ambassador Liu Xiaoming at the "Icebreakers" Chinese New Year Dinner 2019: Carry on the "Icebreakers" Spirit and Take China-UK Relations Forward(2019-02-01)
· Speech by H.E. Ambassador Liu Xiaoming at the China Lates of the Science Museum: A Delightful Taste of China, A Closer China-UK Bond(2019-01-31)
· Ambassador Liu Xiaoming Attends the 2019 CSSAUK Chinese New Year Gala(2019-01-30)
· Ambassador Liu Xiaoming Attends 2019 APPCG Chinese New Year Reception(2019-01-30)
· Remarks by H.E. Ambassador Liu Xiaoming at the APPCG Chinese New Year Reception: Build Common Ground for a Truly "Golden Era"(2019-01-29)
· Speech by H.E. Ambassador Liu Xiaoming at the 2019 CSSAUK Chinese New Year Gala: Align the Small Dream with the Big Mission(2019-01-29)
· The Sunday Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled Don't listen to the scaremongers – Huawei is not a security threat to Britain(2019-01-28)
· The Chinese Embassy Holds a Reception for Participants of the China-UK Mathematic Teacher Exchange Programme(2019-01-28)
· Speech by H.E. Ambassador Liu Xiaoming at the China-UK Mathematic Teacher Exchange Programme Reception: Make Greater Contribution to China-UK Educational Exchange and Cooperation(2019-01-26)
· Ambassador Liu Xiaoming Holds Talks with The Daily Telegraph Editors and Gives an Interview(2019-01-23)
· The Daily Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled Dialogue and co-operation are the only way to cyber security(2019-01-22)
· Ambassador Liu Xiaoming Meets with Anthony Samuels, Chairman of Surrey County Council(2019-01-18)
· Ambassador Liu Xiaoming Meets with George Osborne, Former UK First Secretary of State and Chancellor of Exchequer(2019-01-17)
· The Chinese Embassy Holds a Reception Celebrating Stephen Perry Being Awarded the China Reform and Friendship Medal(2019-01-16)
· Speech by H.E. Ambassador Liu Xiaoming at the Reception Celebrating Mr. Stephen Perry Being Awarded the China Reform and Friendship Medal: Reform Promotes Development and Cooperation Enhances Friendship(2019-01-15)
· Ambassador Liu Xiaoming Holds Talks with British Academicians(2019-01-10)
· Ambassador Liu Xiaoming Meets with Professor Chan Siu-chee, Secretary for Food and Health of Hong Kong SAR Government(2019-01-10)
· Keynote Speech by H.E. Ambassador Liu Xiaoming at the Oxford and Cambridge Club: China is Firmly Committed to Peaceful Development and Win-Win Cooperation(2019-01-09)
· Ambassador Liu Xiaoming Meets with Stephen Perry, Awardee of China Reform Friendship Medal and Chairman of the 48 Group Club(2019-01-08)
· The Daily Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled China's reform heralds a bright new future(2019-01-01)
· Speech by H.E. Ambassador Liu Xiaoming at the Belt and Road Initiative and Green Finance Forum: Deepen Cooperation on Green Finance for More Progress in Belt and Road Development(2018-11-27)
· The British Journal Asia House Insights Published A Signed Article by Ambassador Liu Xiaoming Entitled Openness and Cooperation is the Only Road Leading to Prosperity and Development in Asia and the World(2018-11-22)
· The Daily Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled China's focus is on peace, co-operation and hard work(2018-10-20)
· Message of Congratulations from Ambassador Liu Xiaoming to the fourth China-UK Regional Leaders' Summit(2018-10-17)
· The Daily Telegraph Publishes a Signed Article by Ambassador Liu Xiaoming Entitled China can't let the law of the jungle harm world trade(2018-10-05)
· Remarks by H.E. Ambassador Liu Xiaoming at the Concert Celebrating the 69th Anniversary of the Founding of the People's Republic of China and the 25th Anniversary of the Chopsticks Club: A Choral of Cooperation, A Dream of Friendship(2018-09-30)
· The Chinese Embassy Holds Reception Celebrating the 69th Anniversary of the Founding of the People's Republic of China(2018-09-29)
· Speech by Ambassador Liu Xiaoming at the Reception Marking the 69th Anniversary of the Founding of the People's Republic of China(2018-09-28)
· Ambassador Liu Xiaoming Meets with Cheung Kin-chung, Chief Secretary for Administration of Hong Kong SAR Government(2018-09-27)
· The Politics First Magazine Published A Signed Article by Ambassador Liu Xiaoming Entitled How to Ensure the Steady and Sustained Development of the China-UK "Golden Era"(2018-09-22)
· Keynote Speech by H.E. Ambassador Liu Xiaoming at the Annual Commonwealth Diplomats Induction Programme: China Stays Committed to Peaceful Development(2018-09-20)
Keynote Speech by H.E. Ambassador Liu Xiaoming at the KPMG Breakfast Meeting: The Chinese Economy: What has changed and what has not?
London, 20 February 2019
2019/02/21

Vice Chairman David Sayer,

Ladies and Gentlemen,

Dear Friends:

Good morning!

Yesterday was the Lantern Festival. On this day, the Chinese families would all come out of their houses to mark the last day of the Chinese New Year celebration with lantern display and fun fair, and get ready for back-to-work day.

So, on the first day of work according to the Chinese lunar calendar, may I say it is such a delight to join you at the KPMG for this breakfast meeting to mark the beginning of a whole year’s work and to exchange views with you on the Chinese economy.

The Chinese economy has been a hot topic lately. David asked me to share my thoughts. So I did some homework and summarized what has changed, and what has not, in the Chinese economy.

First, China’s external economic environment has changed, but the long-term growth momentum of the Chinese economy has not.

In the world economy, the downward pressure is mounting, and uncertainties and instabilities are increasing. These are caused by

  • weakening driving forces for international trade,
  • increasing turbulence in the global financial market,
  • accumulating risks, and
  • looming protectionism and unilateralism.

China-US trade friction is also gradually taking its toll.

Despite the complex and severe external environment, China’s GDP reached $13.6 trillion in 2018 and the growth rate was 6.6%. Some people point to the slowdown of Chinese economy, but the fact is:

  • This growth rate was higher than the 6.5% target;
  • It is the highest of the five biggest economies in the world;
  • And given the size of the Chinese economy, that is, nearly $14 trillion, this growth rate was indeed amazing.

In the long run, China has the confidence and capability to make sure its economy will grow within the anticipated range. After 70 years since the founding of New China, especially after more than 40 years of reform and opening up, the Chinese economy has built up a solid foundation, which will ensure the strong resilience and stability in its future growth.

Second, market entities and growth engines have changed, but the direction of economic restructuring and upgrading has not.

As China pursues innovation-driven development, new industries, new products and new business models have flourished.

  • In 2018, the output of new energy vehicles grew by 40.1%, optical fiber by 23% and smart television by 18.7%.
  • Newly-registered companies totaled 6.7 million last year. That was a 10.3% increase over the previous year, and it means that on average 18,400 companies were registered every day.
  • New technologies, such as digital economy, e-commerce, modern supply chain and network financing, have achieved an integrated development.
  • Platform economy, sharing economy and smart economy are flourishing.

At the same time, the Chinese economy is shifting from high-speed growth to high-quality growth, and the economic structure is optimising.

In 2018, final consumption expenditure contributed 76.2% of economic growth; tertiary industry contributed 59.7%; and the value-added of the high-tech manufacturing industries accounted for 13.9% of the total increase of the industrial enterprises above the designated size, which was 1.2 percentage points higher than that of the previous year.

China is also stepping up energy conservation and emission reduction. We are working on a green economy. In 2018, energy consumption per unit GDP decreased by 3.1%; and the share of clean energy in total energy consumption increased by 1.3%.

Moreover, China has steadied the macro-economic leverage ratio and kept the debt level under control. By the end of 2018, domestic assets of China’s banking sector had totaled 261.4 trillion RMB yuan, with the ratio of non-performing loans standing at only 1.89%.

Third, the intensity and measures of reform have changed, but China’s determination to stay open has not.

China is deepening the supply-side structural reform and taking vigorous efforts to tap the potential of domestic consumption. In this process,

  • We will put in place carefully measured macro regulation and control, and rely on market rules and rule of law.
  • We will focus on invigorating micro-entities by giving enterprises and entrepreneurs the initiative. This will be achieved by giving them positive incentives and encouraging market competition.
  • We will work on better circulation in our national economy, build a unified and open modern market system with orderly competition, and improve financial services. Through these efforts, we will enable a virtuous cycle between domestic market and producers, between economic growth and employment expansion, and between the financial sector and the real economy.

Amidst all these efforts, China is committed to the basic national policy of opening up. We have adopted a number of measures to increase market access and promote investment liberalisation and facilitation.

In 2018, China successfully hosted the first International Import Expo, and brought down average tariff from 9.8% to 7.5%.

According to World Bank report Doing Business 2019, China ranks the 46th out of 190 economies in the ease of doing business, moving up by 32 places than the previous year. The following figures show how this was achieved.

  • Despite a steep 19% drop in global FDI, foreign investment flowing into China totaled $135 billion, increasing by 3%.
  • Newly-set-up foreign businesses in China topped 60,000, increasing by 69.8%.
  • Of all these, British investment in China soared by 150.1%.

With its concrete actions, China has demonstrated to the world its determination to support trade liberalisation and open its market.

Fourth, China’s role in the global governance has changed, but its resolve to share benefits with the world has not.

China cannot achieve development in isolation from the world, and the world needs China in realising global prosperity.

In recent years, China has played an active role in global governance. At the G20 summit, APEC Economic Leaders’ meeting and BRICS summit, China has stood up against protectionism and unilateralism, upheld the rule-based multilateral free trade system firmly, and proposed China’s plans and solutions. These have been important in making sure that multilateral dialogues focus on inclusive development and win-win cooperation.

China has also taken concrete actions in this respect.

China has been the largest contributor to world economic growth for many years in a row. In 2018, China accounted for nearly 30% of world economic growth. With huge consumer potential and investment opportunities, China has also created a large amount of jobs for the world.

Take the Belt and Road Initiative for example. BRI has become a public good for the whole world by allowing all participating parties to benefit from China’s development. By the end of 2018, China had invested $28.9 billion in countries along the BRI routes, paid $2 billion in tax to host countries and created 244,000 jobs for the local communities.

Looking ahead, I am confident that the Chinese economy, as the most important growth engine in the world, will maintain robust development and play an indispensable role in global economic growth.

Ladies and Gentlemen,

Dear Friends:

This year marks the 65th anniversary of the establishment of China-UK diplomatic relationship at the level of chargé d’affaires. Over the past 65 years, China and the UK have achieved fruitful results in our cooperation across the board, thanks to the concerted efforts of both sides. There have been numerous highlights in our economic, trade, investment and financial cooperation.

However, as we all know, China-UK relations encountered some setbacks last year. In order to cherish the hard-won momentum in the relations and keep to the direction of the “Golden Era”, both China and the UK should resist interruptions and bring the bilateral relations back on track at an early date.

Under such circumstances, it is my sincere hope that the business community, including KPMG, will leverage its advantages and seize the enormous opportunities of cooperation with China. This will inject much needed positive energy into the “Golden Era” and produce more “golden fruits”. In my opinion, UK businesses could find opportunities in the following three aspects:

First, you could find opportunities in forging a strong link between China and the UK based on our industrial and policy synergy.

Both China and the UK support free trade and an open economy. It is important that we work together to uphold open cooperation, safeguard the open economy, oppose protectionism of all forms and foster a fair, transparent and non-discriminatory business environment for the companies of our two countries.

China is lifting and easing restrictions on foreign ownership in joint venture firms in sectors such as banking, insurance, securities, auto manufacturing and ship building. This has created more favourable conditions for our two countries to deepen business cooperation.

This year, China will host the second International Import Expo. We welcome British companies to the Expo and hope you will bring more British products and services to the Chinese market.

Second, you could find opportunities in building a platform for cooperation on the Belt and Road Initiative.

Thanks to BRI development, countries along the routes have enhanced trade, tapped investment potential and benefited from major projects.

In 2019, China will host the second Belt and Road Forum for International Cooperation. We look forward to working together with global partners to ensure that BRI development is of higher quality, up to a higher standard and at a higher level.

According to a recent report, BRI will add $117 billion to global trade this year, including $61 billion worth of imports by China from about 80 countries.

BRI promises great potential for China-UK cooperation. I read and appreciated the two reports on BRI issued by the KPMG. I look forward to more suggestions and ideas from you in the new year.

Third, you could find opportunities in the innovations brought about by the new round of scientific and technological revolution.

This round of scientific revolution, and the industrial transformation that comes with it, is all dimensional. Its impact on the production model, lifestyle and value will be profound.

To keep up with this trend, we should take prompt actions to stimulate the innovation potential, invigorate the market, and enhance international exchanges and cooperation on innovation. We must get ready to take on our respective and common challenges in the future development of our countries.

In April this year, the 17th China International Talent Exchange Conference will be held in Shenzhen. The UK will be the only “country of honour”. I am sure this event will give a fresh boost to China-UK cooperation on innovation and talent exchange.

Ladies and Gentlemen,

Dear Friends:

Entrepreneurs are an important force leading economic growth and riding the waves of globalisation.

In 2005, the KPMG established the China Desk and has since expanded its business in China and made positive contribution to China-UK relations and mutually beneficial cooperation.

I sincerely hope that, in the new year, the business communities of our two countries will join hands to seize the opportunities and deepen cooperation. Together, you could make greater contribution to the steady and sustained development of the China-UK “Golden Era”!

Thank you!

Now I would like to take your questions.

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