Keynote Speech by Chinese Ambassador to the UK Zheng Zeguang at the Asia House Annual Outlook 2025 Launch

On 16 January, H.E. Ambassador Zheng Zeguang attended the Asia House Annual Outlook 2025 launch at invitation and delivered a keynote speech titled "Advancing China-UK Mutually Beneficial Cooperation with Confidence and Determination". The full text of the speech is as follows:

Lord Green,
Mr Lawrence,
Your Excellencies,
Ladies and gentlemen, 
Friends,

It gives me great pleasure to attend the Asia House Annual Outlook 2025 launch. Thank you for the kind invitation. 

I'd like to thank the Asia House and its members for the long-standing efforts in promoting understanding and cooperation between China and the UK.

I hope this event and the upcoming outlook report will help people in the UK to better assess the prospects of economic development in China and other Asian countries, and bring more confidence in and more opportunities for economic cooperation.

Ladies and gentlemen,

2024 featured chaotic geopolitics and sluggish economy. The year 2025, unfortunately, is even more challenging and turbulent. But out of crises, new opportunities are also created. 

At this trying times, all responsible governments, business leaders, think tanks and scholars should remain clear-eyed and calm, show determination and confidence, uphold openness and inclusiveness, and work together to help promote world cooperation, unity, peace, and stability.

Ladies and gentlemen,

In the past year, facing increasing external pressure and rising internal difficulties, China has responded calmly and made solid gains in high-quality development. 

First, steady progress for the economy. China's GDP is expected to exceed 130 trillion yuan in 2024 and the annual growth rate is forecast to be around 5%. China remains the biggest engine driving the world economy.

Second, new achievements in high-quality development. As a result of China's efforts to foster new quality productive forces, new industries and new modes of business have kept emerging. For the first time in history, China has produced more than 10 million new energy vehicles in one year. Breakthroughs have also been made in integrated circuit, AI, quantum communications, etc. 

Third, new headway in green and low-carbon transformation. By the end of September 2024, the installed capacity of renewable energy reached 1.7 billion kilowatts, accounting for about 54.7% of the total installed capacity. In the first three quarters, the average PM2.5 concentration in most cities decreased by 3.6%. 

Fourth, new record for foreign trade. Trade in goods reached 43.8 trillion yuan, an increase of 5%. In the first 11 months, services trade was 6.7 trillion yuan, up 14.2%. Both figures have hit a record high. 

Fifth, improvement in opening up. Market access has been continuously widened, with all restrictions in the manufacturing sector lifted and pilot programs in opening up telecommunications and medical care advanced. In the first 11 months, 52,000 foreign-funded enterprises were newly established, and about 750 billion yuan of foreign investment attracted. 

The above achievements have once again exceeded outside forecasts, and proved those Western politicians wrong--they have tried to talk China down.

What are the prospects for 2025?

In 2025, China will go all out to implement the decisions of the Central Economic Work Conference, work to maintain steady economic growth, keep employment and prices generally stable, ensure a basic equilibrium in the balance of payments, and increase our citizens' income in step with economic growth. The key phrases will be proactive fiscal policy and moderately easy monetary policy.

Our focus will be on nine key areas: 

First, to vigorously boost consumption, improve investment efficiency, and further unlock domestic demand on all fronts. 

Second, to drive the development of new quality productive forces through sci-tech innovation and build a modernised industrial system. 

Third, to give full play to economic system reform and ensure that landmark reform measures are effectively implemented.

Fourth, to expand high-standard opening up while keeping foreign trade and foreign investment steady. 

Fifth, to effectively prevent and defuse risks in key areas, to avert any systemic risks.

Sixth, to pursue coordinated progress in new urbanisation and all-around rural revitalisation and promote integrated urban-rural development. 

Seventh, to strengthen the implementation of regional strategies and boost regional development vitality. 

Eighth, to further cut carbon emissions, reduce pollution, pursue green development and boost economic growth in a concerted manner, and ramp up green transition in economic and social development. 

And ninth, to ensure and improve people's wellbeing, and give the people a growing sense of fulfillment, happiness, and security.

We should never underestimate the challenges and headwinds, especially external shocks. 

But we will redouble our efforts to keep China's economy on an upward trajectory, steadily meet the set development targets and bring more stability and certainty to the world. 

Ladies and gentlemen,

Asia-Pacific is the world's most dynamic economy and the primary engine of global economic growth. 

Among China's trading partners, ASEAN, the EU and the US are the top three. Among the 21 APEC economies, China is the largest trading partner of 13 of them, and contributes 64.2% of the region's economic growth, 37.6% of the growth in goods trade and 44.6% of the growth in services trade.

Confronted with rising unilateralism and protectionism and geopolitical tensions, China will work closely together with other Asia-Pacific countries to build an Asia-Pacific community with a shared future, and start a new era in economic cooperation.

First, we need to build an open and interconnected paradigm for Asia-Pacific cooperation, stay committed to multilateralism and an open economy, and advance regional economic integration and connectivity. 

Second, we need to make green innovation a catalyst for the Asia-Pacific, firmly seize the opportunities presented by the new round of sci-tech revolution and industrial transformation, and strengthen exchanges and cooperation in AI, quantum information, and other frontier areas and promote a leapfrog development of productive forces across this region.

Third, we need to uphold a universally beneficial and inclusive vision for Asia-Pacific development, strengthen economic and technical cooperation, and work together to grow the pie and distribute it equitably to allow more economies and people to benefit from development.

Ladies and gentlemen,

Aside from the Asia-Pacific, China also attaches a lot of importance to its relations with Europe.

China and the EU are each other's second largest trading partner. The UK included, trade between China and Europe stands at over 920 billion US dollars a year. China-EU two-way investment stock exceeds 250 billion US dollars, and the China-Europe Railway Express has run over 100,000 trips in total. 

The EU should realise that China-EU economic and trade cooperation has huge potentials and is mutually beneficial and must resist the temptation of protectionist measures.

We look forward to working with the EU to uphold partnership, seek mutual benefits, expand opening up and cooperation, and properly handle frictions and differences.

We hope that Europe will work with China to promote greater development of China-EU economic and trade relations.

Ladies and gentlemen,

The China-UK economic partnership is an important part of the China-UK relationship. Counting Hong Kong, the annual bilateral trade between China and the UK has surpassed 110 billion pounds and the two-way investment stock is over 130 billion pounds. According to UK statistics, UK exports to China supported more than 455,000 UK jobs in 2020. 

Over recent months, thanks to the joint efforts of both sides, there has been new progress in China-UK relations. 

President Xi Jinping and Prime Minister Keir Starmer had a successful meeting in Brazil. Foreign Secretary David Lammy made a productive visit to China. 

Just last week, China and the UK held the 11th economic and financial dialogue, which is a concrete action to implement the important common understandings between leaders of our two countries. 

The dialogue produced 69 outcomes in 11 areas including expanding market access, increasing capital market connectivity, and deepening green development cooperation, etc. It has opened up new space and created new momentum for business cooperation between the two countries. 

The two sides are also exploring to reactivate intergovernmental dialogue in various areas including education, science and technology, energy, and climate change.

Now, China-UK relations stand at a critical juncture. Chancellor Rachel Reeves during her visit to China said that the Labour government put economic growth at the centre. It is hoped that  for China-UK relations, the Labour government will also put cooperation at the centre. We should seize the moment and eliminate disturbances. Our focus should be on cooperation instead of challenge or competition.

We must actively expand mutually beneficial cooperation in trade and investment, financial services, clean energy, healthcare, sci-tech innovation, education, culture, tourism, and climate change. 

And as permanent members of the UN Security Council, both sides need to conduct strategic dialogue and enhance communication and coordination on international and regional hotspot issues.

I hope the business communities, think tanks, scholars, and opinion-makers of both China and the UK will grasp the general trend, and work proactively for sustained and steady progress in China-UK relations.

Ladies and gentlemen,

The Chinese New Year of the Snake is just around the corner. In the Chinese zodiac culture, Snake symbolises good luck, longevity and auspiciousness. So, in this spirit, I wish you all and your family happiness, success and good health in the year ahead.

I wish this forum a full success!

Thank you!

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