Honorable Vice Chairman Huang Mengfu,
Ladies and gentlemen,

I’m delighted to join you here at the second China Cashmere Fair in Beijing sponsored by the China Chamber of Commerce for Import & Export of Foodstuffs, Native produce & Animal By-Products (CFNA). On behalf of the Chinese Ministry of Commerce, I’d like to congratulate on the opening of the fair and sincerely thank you all for coming to the fair.

Cashmere is known as the “soft gold” and “fiber diamond’. Being the largest cashmere producer and exporter in the world, China accounts for three quarters of the world’s cashmere production. Chinese cashmere is very competitive for its excellent quality. The China Cashmere Fair is the nation’s only specialized cashmere fair that brings together cashmere businesses throughout the industry chain. It carries the theme of “building brands and leading fashion”, which fully shows the brand-building awareness of the cashmere industry as a whole. Enhancing indigenous innovation and transforming the dynamics of economic growth are important elements of the scientific outlook on development. Brand-building is an important means for achieving such transformation and a way of substantiating the scientific outlook on development. Building indigenous brands is a must for marketing Chinese cashmere in its original light in the international marketplace. It is also a precondition for moving Chinese cashmere products toward the higher-end of the global market.

This year marks the 30th anniversary of China’s reform and opening-up. In these 30 years, China has made remarkable economic achievements. Its economy has been growing at an annualized rate of 9.8%, far higher than the world average. Its economic aggregate ranks No.4 in the world; its total import and export rose to the third place from 2.1738 trillion USD from 20.6 billion USD and its share of global trade from less than 1% to about 8%. Its foreign exchange reserves have gone up from 167 million USD to the current world-topping level of 1.9 trillion USD. Having accumulatively utilized over 780 billion USD of FDI, China now stands as the largest developing-country recipient. China accounts for over 10% of world economic growth and over 12% of international trade increment. China’s rural and urban resident incomes have increased substantially. CPI-adjusted per-capita net income has grown by 5.7 times for both urban and rural residents.

Having said that, we remain sober-minded that China as the world’s largest developing country still has a low level of per-capita GDP and many challenges are still ahead on the way to modernization. In particular, the further spillover of the global financial crisis has dealt a heavy blow on world economic growth and stability. Such an international economic climate will inevitably put pressure and challenges on cashmere businesses. I hope cashmere businesses could reinforce confidence and respond proactively by focusing on market and image building and by adopting a development model based on innovation, quality and brand equity. We should fully capitalize on this fair for discussion, cooperation and brand enhancement so that the world gets to know Chinese cashmere products better and Chinese consumers get more acquainted with foreign cashmere name-brands. In this way, the Fair can truly become an international flagship gathering in the cashmere industry. I’m confident that under the capable leadership of the party and government, we will surely weather the challenging international economic situation and realize the sustainable development of China’s cashmere industry through coordinated efforts.

To conclude, I wish the 2nd China International Cashmere Fair a complete success. I wish all of you good health and prosperous business.

Thank you.


（November 12, 2008）