Mme. Chairperson,

The Chinese delegation supports the statement made by the representative of South Africa on behalf of the Group of 77 and China. Now I wish to state China's position on item 52.

Mme. Chairperson,

The issue of financing is an important guarantee for further international development cooperation. With the increasing expansion of globalization, financing has become a more prominent issue. The Monterrey Consensus adopted at the International Conference on Financing for Development in 2002 is a guiding instrument for financing for development. How to materialize the consensus and how to approriately handle the issue of financing are important premises for the timely realization of the MDGs.

The follow-up process of the Monterrey Consensus was reviewed at the high-level meeting on financing for development held last year on the 60th UN anniversary. A number of important consensus on development were also included in the outcome document adotped at last year's summit, providing guidance for future development cooperation. The implementation of the consensus was reviewed at this year's spring meetings of ECOSOC with Breton Woods Institutions. The results indicate that the progress has not been satisfactory in implementing the consensus.

China always holds that while national governments should take the primary responsibility for financing for development, international support is also essential. The two should complement and enhance each other. The coming few years are the crucial moment for reaching the MDGs. The parties concerned should seize the moment, adopt earnest measures, establish effective global partnership for development, and implement the relevant consensus reached at last year's summit, so as to achieve substantial progress in financing for development. In this regard, I wish to emphasize the following points:

Firstly, We should earnestly fulfill the commitments on increasing aid, debt relief and market access. The developed countries should follow up the consensus contained in the outcome document of last year's summit, draw up realistic timetable, further expand aid scale, gradually realize the goal of 0.7 % ODA/GNI, and continue to improve aid efficiency. At the same time, the developed countries should face squarely the gap between the aid funding and the enormous demands for realizing international development goals, adopt comprehensive measures, and carry out more extensive debt relief and market access to promote world trade and investment and create favorable conditions for the economic and social development of developing countries.

Secondly, We should reform international economic, monetary and trade systems to remove the structural obstacles to financing for development. Financing for development is a comprehensive issue closely linked with the multilateral economic system. Parties concerned should continue to vigorously promote reform of international monetary system, enlarge developing countries' voice and participation, and create a fair, stable and effective financial environment to allow a fundamental solution to the issue of financing for developing countries. Parties concerned should firmly support improving multilateral trading system, resume the Doha Round at an early date, establish equitable, fair, reasonable and open international trade environment, and jointly combat trade protectionism, so as to deal with the issue of financing through trade and use trade to enhance common development.

Thirdly, We should explore new types of financing mechanism and increase and diversify the sources of development aid. We should also make better use of the funds to achieve the most cost-effective results. We believe that innovative financing mechanism is a new experiment for financing for development and a useful supplement to the ODA. It will play a positive role in overcoming development aid shortage and reinforcing international development cooperation. Recently, the international community has put forward many new concepts on innovative financing mechanism, and some of them have been taken on trial. The UNITAID in particular, sponsored by France, Brazil and some other countries, has been initiated and put into operation not long ago. China welcomes such initiatives.

Fourthly, We should improve partnership and domestic structure, and enhance capacity building of developing countries in financing for development. To establish global partnership for development is a part of the outcome document of last year's summit. The parties concerned should adopt practical measures and turn them into actions. The developing countries should make greater efforts to improve macro economic policies as well as governance, provide good investment environment, and fundamentally raise the capacity of self-financing and development. The developed countries should offer practical support in priority areas of developing countries, help them accumulate experience and strengthen capacity building. The international community should establish realistic and effective supervisory mechanism to follow up the financing process and formulate appropriate evaluation framework to ensure the implementation of relevant consensus. We welcome the offer from Government of Qatar to host the Follow-up Conference on Financing For Development and hope that parties concerned can reach consensus at an early date regarding issues of convening this conference.

Mme. Chairperson,

Over the years, China has accumulated some experiences in utilizing foreign investment and developing economy. China will continue to pursue the basic state policy of opening up. Under the circumstances of increasingly closer links between domestic and world market, we will focus on raising the level of opening up, change the ways of economic growth, make effective use of foreign investment, encourage the capable enterprises to "go abroad" at the meantime, and pursue mutually beneficial and win-win open strategy.

As a developing country, China has been offering, within its abilities, diversified development aid to other developing countries through multilateral and bilateral channels. At last year's summit for the 60th anniversary of the UN, President Hu Jintao announced five measures to help other developing countries in development, including zero tariff, debt relief, preferential loans, public health cooperation, and human resources training. China has been implementing these measures vigorously. The Chinese government is ready to continue to discuss with the countries concerned on related issues on financing for development, exchange views and learn from each other, reinforce mutually beneficial cooperation, and enhance common development.

Thank you, Mme. Chairperson.