Good morning, everyone. I am so glad to come to Shanghai to attend the seminar of the forty-year-old Sino-Japanese relations at the warm invitation of the host. The time is right and relevant on the occasion of the 40th anniversary of the normalization of Sino-Japanese diplomatic relations to have the insightful people of the two countries gather together retrospecting and prospecting the bilateral relations. I would like to express my respect to all of you that have long been concerned with and support the development of Sino-Japanese relations, and I am sincerely looking forward to your candid and in-depth communication and to the contribution of your wisdom that will lead to positive and pragmatic results.

Of the peoples of the two sides at presence today, many are elder than me, some are old friends of me, and some are my elder siblings when I was an undergraduate and some are my alumni. Since all of you are well-known scholars, specialists and professors, it’s like teaching fish to swim for me to make a keynote speech. Please give me your criticism and instruction whenever I make mistakes.

China and Japan are close neighbors with a long long history of bilateral relations. As premier Zhou Enlai had most precisely described it as “friendship for two thousand years while misfortune for fifty years”. The peoples of the two nations have been learning and emulating each other in their friendly exchanges for as long as two thousand years, which have promoted their respective development and made important contribution to the civilization of mankind. However, the two countries had experienced an unfortunate history that started from the late 19th century, including the war of invading China launched by the Japanese militarism in 1930s-1940s in particular, which had brought tremendous disaster to the Chinese people and to the Japanese people as well. China and Japan had been undergoing a mutually insulated and antagonistic abnormality till long after the war.

In view of the history of the development of Sino-Japanese relations, the 1972 normalization of diplomatic relations of the two countries is epochal in significance, which not only concluded the abnormal state of the post-war relations of the two countries, sent the relations back on the track of peace, friendship and cooperation, but also profoundly altered international as well as regional political configuration. In spite of the iron curtain of the cold war, China and Japan that respectively belonged to the different camps in terms of social system had turned from hostility to reconciliation, which have made important contribution to the peace and stability of Asia and the world and set a model example of developing good-neighborhood relations among countries of different social systems.

The past is a mirror of the present. Today we are commemorating the 40th anniversary of the diplomatic normalization in order to draw on enlightenment in history and by which to further develop Sino-Japanese relations. At this very date and moment, we are recalling the leaders and the insightful people of the older generation of the two countries in order to make example of their wisdom and courage that surely has realistic guiding implication to the Sino-Japanese relations at present. The normalization of the Sino-Japanese relations has left us with many important experience and enlightenment.

----For developing Sino-Japanese relations, it needs a strategic vision that can detect the trend of the world and the tide of era. In the early 1970s, China was restored its legal seat in the UN, the U.S. President Nixon made his ice-breaking visit to China, and the Japanese domestic demand for resuming Sino-Japanese diplomatic relations surged. Leaders of the two countries then have sensed that the time was ripe for normalizing the Sino-Japanese diplomatic relations. Prime Minister Kakuei Tanaka followed the trend of time and visited China at the invitation of Premier Zhou Enlai. The leaders of the two countries signed the China-Japan Joint Statement that realized the normalization of Sino-Japanese diplomatic relations and opened a new page of the Sino-Japanese relations. In the ensuing crucial historical junctures, such as signing peace and friendship treaty and breaking political stalemate, the leaders of the two countries had equally followed the trend of times and made the right choices. Their strategic insights deserve what their later generations to learn from.

----For developing Sino-Japanese relations, it needs courage and historical commitment. Imaginably, the war trauma left by Japanese aggression of China and the ideological gulf between the two countries had made the road to normalization particularly harsh and difficult. In front of the critical historical choice and out of the fundamental interest of the two countries and peoples, the old-generation leaders and politicians of the two countries took up great political courage and boldness to have made the strategic determination, obviated tremendous obstacles and interferences, and took on the historical responsibility without hesitation. It is their correct decision that powerfully pushed forward the historical wheel.

----For developing Sino-Japanese relations, it needs the political wisdom of “seeking common ground while reserving differences”. China and Japan share differences of social system and ideology, and many sensitive issues involving history, Taiwan and territorial sovereignty. In their negotiations on the issue of normalization, the leaders of the two countries looked at the long-term and overall pictures, faced up the reality, adhered to the spirit of “seeking common ground while reserving differences”, before finally reached agreement on the critical issues involving the political foundation of the bilateral relations, and reached important reconciliation of “putting off temporarily and resolving later” on the issue of Diaoyu Islands. The high-level political wisdom of the leaders of the two countries had largely accelerated the process of normalization and created advantageous conditions for the long and stable development of the Sino-Japanese relations as well. Those important consensus and reconciliation reached by the old-generation politicians of the two countries should be valued and continued, while we should also create conditions and step by step explore the way to transform “seeking common ground while reserving differences” into “seeking common ground while resolving differences”.

----For developing Sino-Japanese relations, it calls for perseverant faith of friendship. The Sino-Japanese friendship is a constant theme of the Sino-Japanese relations for two thousand years. Since the end of the World War II, the insightful people of the two countries had adhered to the faith of Sino-Japanese friendship in a harsh condition by building up conditions for the normalization in an approach that the civilians took the lead as urging the officials to follow suit. By unremitting effort for over twenty years, trickles of the streams converged into an irresistible torrent of the river of the times, which made true of the normalization. The history of the Sino-Japanese relations has provided positive as well as negative examples proving that peace can bring benefit to the two countries, well enough to realize win-win outcomes, while confrontation could only bring loss to both. The Sino-Japanese friendship is in the fundamental interest of the peoples of the two countries, and is an irresistible historical tide.

Forty years on since the normalization, the Sino-Japanese relations have experienced twists and turns, though never ceased of its forward steps, but rather obtained unprecedented achievement. The two countries have signed four political documents and are now committed to pushing for strategic relationships of mutual benefit. The bilateral trade has grown from $1 billion to $340 billion; personnel exchanges have grown from 10000 person/times to over 5 million person/times; the two countries have signed over 250 pairs of sister cities, counties and provinces. The interests of the two countries are so deeply integrated and their ties are so tightly bound that it has become a “commonwealth of interest”, where neither is separable from the other. The great progress made by the Sino-Japanese relations have brought tangible interest to the peoples of the two countries, vigorously boosted respective developments of the two countries and made important contribution to the development and prosperity of the region and the world.

Presently, the momentum of improvement and development of Sino-Japanese relations have maintained in general. Prime Minister Noda had successfully visited China the end of last year. Leaders of the two countries have reached a number of important consensus and concrete results, which have boosted the bilateral relations with new important progresses. This year on, pragmatic cooperation of the two countries in all fields moved on steadily and the Friendship Year of People-to-People Exchange between China and Japan has opened orderly with as many as 400 programs. At the same time, however, the bilateral relations have been caught up with apparent discords. Negative factors within Japan against China are fermenting, and especially the right-wingers have been producing incidents consecutively on the sensitive issues such as Diaoyu Islands, history, Xinjiang, Tibet, which have adversely affected the atmosphere of the commemoration of the 40th anniversary of the normalization in both countries, having seriously interfered the bilateral relations, which should be paid more attention to by the insightful people in all communities of both countries. Recently, the Japanese authority deliberately ignored China’s strong objections as to permit the Anti-China separatist organization to have held the so-called "the fourth meeting of the World Uyghur Congress" in Japan, which had impaired China’s territorial sovereignty and national security interest, and seriously compromised the bilateral political trust. Some of the separatists are wanted by International Criminal Police Organization and some are plotters and organizers behind the Xinjiang separatist activities. Some Japanese right-wingers also colluded with them to visit the Yasukuni Shrine. China and Japan should be on high alert that individual rightist politicians in Japan seek to gain political capital by deliberately producing the issue of “island purchase” in an attempt to instigate confrontation between opinions of the two peoples and to poison the atmosphere of Sino-Japanese relations. Their purpose is so vicious that it poses a great challenge and potential threat to the Sino-Japanese relations. The insightful people of the two countries should take firm actions to stop the egregious activities that hijacking and sabotaging Sino-Japanese relations for their own private interest. And the insightful people should make joint effort to protect the situation of friendship respecting the 40th anniversary of the normalization of Sino-Japanese diplomatic relations, and ensure a healthy and stable development of Sino-Japanese relations.

As having personally experienced the development of the Sino-Japanese relations for half a century, I am well aware of the special sensitivity and complexity of the relations and deeply worried about the negative development in the relations. The Sino-Japanese relations are like sailing against the current. In other words, the bilateral relations will progress or regress. Any stagnation will lead to setbacks, and even to the precipitation of the otherwise excellent situation of the relations, which will fundamentally bear on and undermine the relations. In particular, as the internal and external situations in each of China and Japan further evolve, the development of the Sino-Japanese relations has, to some extent, entered into a period of complex adjustment and transition. The new situation calls on the two sides to make greater and joint efforts to address some deep-seated problems, especially the two issues—the absence of political trust and the fragile national sentiments, in order to push for healthy and stable development of Sino-Japanese relations and on whose basis to carry forward the cause and forge ahead into the future toward a higher development level. For now and for the period to come, these are the two tasks more important and urgent than ever since.     

Sino-Japanese relations are the most important bilateral relations to each other. Given the new international and regional situation, the importance of the relations will only rise rather than fall. The common interest between the two countries will not decrease but will increase. It is exactly because of the time when the bilateral relations is facing difficulties, both sides should pay particular importance to the maintenance of the overall situation, keep a long-term vision, strengthen dialogue, exchange and cooperation, expand positive aspects, dwindle negative aspects, and always dominate the Sino-Japanese relations with healthy and positive factors. The Chinese side consistently attaches great importance to the Sino-Japanese relations, persists in pursuing Sino-Japanese friendship policy, and consistently places the Sino-Japanese relations on the important position in the overall diplomatic situation. On the event of the 40th anniversary of the normalization of Sino-Japanese diplomatic relations, both sides should sum up the past, look into the future, follow the principles established in the four political documents of Sino-Japanese relations and the important consensus reached by leaders of the two countries, and join hands in opening a new situation of the strategic relations of mutual-benefit in terms of mutual trust, mutual respect, equal cooperation and common development. At present, efforts should be made in the following priorities:

First, we should increase political mutual trust and address sensitive issues appropriately. The key to increase political trust is to strategically, comprehensively, objectively and rationally comprehend each other’s development, to truly regard each other as partner rather than rivalry, to pursue positive and friendly policy toward each other, to truly respect each other’s core interests and vital concerns, and to completely abandon the cold-war zero-sum mentality in order to promote mutual understanding and cooperation in security areas.

Therefore, both sides should maintain top-level exchanges and contacts, and inject inexhaustible political dynamics into the development of the bilateral relations; strengthen strategic dialogue and the dialogues between diplomatic authorities, and conduct in-depth and timely dialogues and communication on important issues in the bilateral relations, and on respective domestic and foreign policies and development; to strengthen candid communication between political parties and parliaments; and to advance dialogue, exchange and cooperation in defense and security areas, resolve mutual suspicions and prevent strategic miscalculation.

What I want to stress is that, upon vital and sensitive issues, the two countries should always attach importance to the overall situation of the bilateral relations and to the fundamental interests of the two peoples; put the situation in control; tightly grip the direction of the bilateral relations in line to the relevant consensus and reconciliation of both sides, especially the spirit of the four political documents between China and Japan; and resolutely stop the activities that impair political mutual trust and national sentiment.

Second, both sides should deepen pragmatic cooperation and keep on expanding common interests. China and Japan reside in different stages of development, hence their economies are apparently complementary with huge potential of cooperation. China's fast and steady economic growth has provided and will continue to provide Japan with important business opportunities, and Japan's advanced technology and socio-economic management are what China wants to learn from for a long time to come. The two countries should adapt to the changes of the times, strengthen cooperation in a two-way and reciprocal manner, push for transformation and upgrading of bilateral economic and trade cooperation, and continuously consolidate the economic basis of the bilateral relations. Both sides should strengthen pragmatic cooperation in key areas such as green and low-carbon economy, energy conservation and environmental protection, and high and new technology. Major projects should be promoted. Business cooperation should shift its concentration from quantity to quality, and try hard to develop large projects and bright points. They should also actively explore and expand the newly emerging areas of cooperation such as healthcare and old-age support.

Now the underlying impact of the international financial crisis has not disappeared and the European debt crisis is still underway. Stronger fiscal and financial cooperation between China and Japan can help to maintain financial stability of the two countries as well as the region and the whole world, and help to bring about healthy development of the two economies respectively. At the end of last year, leaders of the two countries reached five points of agreement on strengthening financial cooperation. On June 1, 2012, China and Japan began direct trading of RMB and Japanese Yen. This is a bright point of the strategic cooperation, which remarks substantial progress in the financial cooperation and is significant to the bilateral economic and trade cooperation.    

Third, both should expand cultural and people-to-people exchanges and improve the sentiments of the two peoples. According to the poll of Beijing-Tokyo Forum, the majority of the respondents thought Sino-Japanese relations very important, though unsatisfied for the time being. This shows that the status of the bilateral relations is far from expected. According to Kyodo News, moreover, the Eighth Public Opinion on Sino-Japanese relations 2012 Survey co-conducted by Japan's Genron NPO and China Daily reported that 80% or so respondents of the two countries believe Sino-Japanese relations are very important, but 84.3% of Japanese respondents held a negative impression to China, while 64.5% of the Chinese respondents did the same to Japan.

The poll data are for reference though, they are important, especially as they are combined with reality in concrete analysis. In other words, one should never come to the conclusion risking bias due to the preoccupation of the poll data. Although problems and difficulties in Sino-Japanese relations are salient, the fundamentals have not substantially changed, and peace and cooperation remain to be the mainstream of the relations. Great progress has been made since the normalization of the diplomatic relations 40 years ago, and more rooms and larger potentials are there to be tapped. The Japanese ruling parties as well as the opposition, and the society at large, especially the business communities and local governments, all hope to strengthen cooperation with China. Peoples of the two countries widely believe that Sino-Japanese relations are very important. Therefore, the Sino-Japanese relations are blessed with solid basis and good conditions for further development. I believe that the two sides should be more urgent to reverse the sliding sentiments of the peoples with stronger confidence, patience, engagement, and unremitting efforts.

The two sides are to continually hold the serial activities of the “Year of China-Japan National Exchange and Friendship” and maintain the amicable atmosphere for the 40th anniversary of the normalization of diplomatic relations. We should focus on and expand exchanges between key groups, including the youth, the media, social scientists and middle-aged-and-young officials, and encourage them to play the role of bridge for the improvement of bilateral relations. Both should fully exploit the shared origins of Chinese and Japanese histories and cultures as well as the oriental values. Both should also make full use of the cooperation in modern pop cultures and creative industries, embark on exchanges that are most acceptable and heart-gripping to the people, vigorously push for extending people-to-people exchanges to the grass-roots exchanges in order to set up a "link of hearts" through "the new encounters" of more peoples of the two countries. Both should work together to foster a concrete and amicable media environment and provide the media with more active, positive and objective information, so as to boost mutual understanding and friendly sentiments between the two peoples.

Fourth, China and Japan should strengthen communication, coordination and cooperation at the regional level and take the road of joining hands in revitalizing Asia. Asia is where both China and Japan entrust their lives and where their common development strategy depends on. With the rise of Asia and regional integration, space of cooperation in all fields between China and Japan enlarges. As major powers in this region, the two countries should tap into their advantages, intensify coordination and cooperation, and seek more converging interests. Both should maintain close communication on major issues concerning the future configuration of regional cooperation and map out a blueprint of Asia's development. Both should actively promote regional economic integration, accelerate the building of China-Japan-ROK FTA and East Asia FTA, strengthen regional financial cooperation, explore pragmatic cooperation on connectivity building and Mekong subregional area, and bring win-win outcomes to regional cooperation. Both should work together to push for six-party talks and the Northeast Asia peace mechanism, maintain peace and stability of the Korean Peninsula and contribute to the lasting peace and security of the region.

Fifth, both should engage more in benign interactions and cooperation on global issues and jointly make due contribution to the world stability, development and prosperity. As the world is undergoing profound and complicated changes given the era of globalization and information technology, countries across the world are more closely inter-connected and interdependent. No country can handle the ever-growing global issues and challenges alone. All members of the international community share prosperity simultaneously or loss simultaneously. Therefore, the ideas of commonwealth of fate, passengers on a same boat, and win-win cooperation prevail nowadays.

As the second and third largest economies of the world, China and Japan bear important responsibilities for the world peace, stability and prosperity. As the economic recoveries are weak in Europe and U.S., and the world economy is more likely to go downward, China and Japan should make full use of the multilateral platforms including the United Nations, G20 and APEC. They should keep close communication and coordination on maintaining global economic stability, promoting reforms of the international financial system and improving global economic governance mechanisms, and support each other in opposing trade protectionism and in other areas. Both should cooperate on the issues of the UN Millennium Development Goals, climate change, counter-terrorism, resource/energy security, food security, transmitted diseases and other global issues. As China and Japan are both big importers of energy and resources, they should conduct strategic cooperation in the exploration, pricing and transportation of the resources.

Shanghai, as the largest city of China, enjoys a unique and important position in the Sino-Japanese relations. Shanghai Ballet visited Japan in 1972 that lead to the door opened for the normalization of the diplomatic relations of the two countries. Today, Shanghai is the city among other cities of China that exchanges the most, cooperates the deepest and contacts the closest with Japan. All-inclusiveness is one of the trademarks of Shanghai in its evolution, which can offer some clue to the development of Sino-Japanese relations. I am deeply convinced that so long as both sides identify and follow the trend of the times, treat and handle the bilateral relations from a strategic height and a long-term perspective, and adhere to the direction of developing Sino-Japanese strategic relationship of mutual benefit in an all-round way, they will certainly reach the goal of peaceful coexistence, friendship from generation to generation, mutually-benefited cooperation, and common development.

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