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In 1994, APEC put forward a proposal known as the Bogor Goals, asking "developed members to realize trade and investment liberalization by 2010 and developing members by 2020". Since then, the trade and investment environment in the Asia-Pacific region has improved a great deal, but trade protectionism still exists as new trade barriers continue to emerge.

This reality indicates there is still a long way to go before reaching the "trade and investment liberalization" goals. Moreover, as the deadline in the first timetable draws closer, major developed countries that are members of APEC are not going all out to reach the Bogor Goals.

They care more about the protection of intellectual property rights, while developing country members are mainly concerned about farm produce and the liberalization of textile and garment trade. The prospect for the Bogor Goals does not look all that promising.

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China maintains that investment liberalization should be handled in coordination with the gradual opening of its investment market and its own decisions in economic administration. The degree of liberalization should be decided according to the level of its economic development.

Today even developed economies are still practicing certain forms of control over foreign investment, because foreign investment is not always suited to the host countries' economic development goals.

As a developing nation, China has every reason to take whatever measures necessary to encourage, restrict or prohibit foreign investment in order to direct foreign funds to various industries with different needs by employing suitable financing policies.

The opening of China's investment market should be a gradual process. The areas to be opened and their degree of openness should be increased gradually with a reasonable transition period.

The relationship between investment liberalization and internal decisions in the nation's economic administration should be handled with care. We should pay close attention to the well coordinated development of China's investment liberalization policy, financial and banking policies and environmental protection policies.

At the same time, China will actively take part in international negotiations over investment liberalization and demand that new international investment rules recognize the hardships of developing countries and give more consideration to their needs.