Text: Daley Speech to China International Electronic Commerce Summit
(Chinese need to be part of Internet-driven global economy)The Internet gives people all kinds of possibilities beyond their borders and China's people should be able to enjoy the benefits of today's Internet-driven global economy, says Commerce Secretary William Daley.
In his keynote speech to the 4th China International Electronic Commerce Summit in Beijing April 7, Daley said: "The world needs the billion people of China to be part of this world trading system."
"Let me be clear," he continued, "we want China's Internet business to grow and prosper. We want to have China as an active member of the global Internet community."
Daley told his audience he planned to return to China in eight days with several members of the United States House of Representatives. "These are the people who truly run our country," he said. "They will vote during the week of May 22, on whether or not the United States should grant China permanent normal trade relations with China."
Daley said the Members of Congress he planned to bring to China are still uncertain how they will vote at the end of May. "No question, they and the vast, vast majority of the American people want to strengthen our ties between the United States and China. And the Members want to come and see China for themselves," he said.
These Members of Congress, he said, "are looking for concrete results... the results of the enormous changes that have been going on in China. They want to know that our business relationship is improving -- that businesses back home in their districts can increase their exports into this growing market."
Following is the text of Daley's remarks, as delivered:
(begin text)
Secretary of Commerce William M. Daley's Keynote Speech
to the 4th China International Electronic Commerce SummitBeijing, China
April 7, 2000I would like to thank Song Ling for that kind introduction and the Ministry of Information Industries for hosting this event. This is an exciting time to be holding this E-Commerce Summit.
This is my first visit of the new century to Beijing.
It is only fitting and rather symbolic that a Commerce Secretary begin The century in China at an E-Commerce event.
Three years ago, when I became Secretary -- back when everything was just business, not e-business -- no one could have imagined how big, or important the Internet would be in all of our lives.
In America, we are now in the middle of the longest economic expansion in our nation's history. One-third of that growth on this expansion can be directly attributed to the growth in information technologies. Now, many economists believe our economy can grow an additional one percent a year -- on a sustained basis. It is because productivity gains from these technologies have are rippling through to the entire economy. I believe as the Internet gives people all kinds of possibilities beyond their borders -- the world needs the billion people of China to be part of this world trading system.
And the Chinese people should be part of the system, so they can fully enjoy the benefits of this Internet-driven economy that is going on throughout the world. Let me be clear: we want China's Internet business to grow and prosper. We want to have China as an active member of the global Internet community.
So after I leave here and go back to Washington tomorrow, I plan to come back to China one week from tomorrow. This time, I will bring with me several members of the United States House of Representatives.
These are the people who truly run our country. They will vote during the week of May 22, on whether or not the United States should grant China permanent normal trade relations with China. For 20 years, our country has annually been renewing annually this normal trade relations -- but this vote would make it permanent, so that China can join the World Trade Organization.
To be honest with you, the Members I will bring to China are uncertain how they will vote at the end of May. No question, they and the vast, vast majority of the American people want to strengthen our ties between the United States and China. And the Members want to come and see China for themselves.
As I told Premier Zhu, they are looking for concrete results. And the results of the enormous changes that have been going on in China. They want to know that our business relationship is improving -- that businesses back home in their districts can increase their exports into this growing market.
When I speak to Americans about the vote that will take place, I explain that as America is seeing a new Internet-driven economy, so is China. I understand about 10 percent of families in Beijing now own computers, which is, of course, a great statement.
But there is much more to do to make communications not only better, but also cheaper -- so that the other 90 percent of the people in and around Beijing will have access to computers. This is the reason the second largest market in the world for PCs next year will be China.
The Members of Congress who will be with me next week will not think- China has to do everything the way America does things. Obviously there are things we can learn, and have learned, from each other -- especially when it comes to the Internet.
Today, I just want to point out three areas that I believe have been important to America's Internet success. First are the efficient capital markets in America. Why is it that there are so many Internet companies starting up in America? Because our innovative people who have brilliant ideas ... start companies ... and find venture capitalists who then help put these ideas into reality. And the venture capitalists are interested, because if the start-ups show signs of success, they can take the firms public, and make 10, 20, or even 100 percent their investment.
As we saw this week, the stock market, though, can be a rough place. Stocks go up and stocks go down sometimes at Internet speed. But we have found there is no more efficient way of allocating capital to people who will use it profitably than the public markets. Countries have tried many other ways: central planning, family connections, or regional competition. But look at all those Internet companies.
More importantly, look at all those wonderful ideas that they have been able to implement because of the capital markets, and implement idea so quickly. It is due to the efficiency of our capital markets. And these capital markets function best, if people all over the world can participate in them freely.
Second, our success has been due to minimal government regulation. I fully believe government should play an important role in creating an environment for businesses to thrive. And to do so in a way that reflects the best values of our society. But too much government interference is definitely counterproductive. What makes the Internet the Internet is its ability to change rapidly and the borderless nature of the Internet. Both of these are totally foreign to government bureaucracies, whose entire existence is based on borders.
Knowing this, three years ago President Clinton and Vice President Gore came out with our first statement of policies about the Internet and the first item was to let the private sector lead. Let the private sector develop solutions that protect the public interest and can adapt rapidly to the changing technologies.
That way government would not mess this enormous opportunity up. When the President said that, it was revolutionary in some corners of our country.
The fact the Internet is growing as rapidly as it is, the fact companies are assuming a new level of public responsibility -- proves that the President's policy was right.
Of course, some areas demand government regulation. Governments need strong laws to protect intellectual property. And to go after hackers who want to disrupt the Internet or who would cheat consumers online. But even then, governments need to work with the private sector to identify the solutions that protect the public but allow the Internet to continue to prosper.
Government has a different role in other areas. In America, the number one concern of consumers online is privacy. They want their privacy protected. They demand their privacy be protected. Some subjects are very sensitive to all of us--medical and financial records--and we need to have laws in place to protect the confidentiality of those records. But for the most part, we protect privacy through self-regulation.
And government's role regarding content is also different. Parents of course want to be able to control what their kids are doing on the Internet. So our industry has created tools to allow the parents to control access to certain websites. But we leave it up to the parents, not to the government. We want to empower people to control their own communications, not have the government make choices for the individuals.
And let's face it: the main product of the Internet is information.
Now, there can be more freedom of expression, there can be more contact between all kinds of people, with all kinds of views than the world has ever seen. Some people believe we should try to control the Internet by restricting access to content, licensing providers of information, or registering users. I believe that by empowering people, by giving them access to information from all over the world, by allowing them almost instant access to customers, contacts, and clients from all over the world, we allow them to unlock their own individual potential.
Will some people abuse this freedom of information? Some might. But most people--I am sure, including most Chinese people--will use the tremendous power of the Internet to create new products and new services that will benefit themselves, their clients, and the general economy and therefore the general populace. Governments should encourage this empowerment, not try to limit it.
Third, and finally, America's success with the Internet has been fueled by a very innovative, and a very risk taking business culture. I know we share this culture, because so many of our Internet entrepreneurs are Americans of Chinese descent. Their remarkable success comes from their incredible Chinese heritage.
Many Americans -- including Chinese-Americans -- want to share their experience and invest their capital here in China. This is an excellent opportunity for both our nations -- as cooperation and investment can only bring us closer.
Of course, some people in China are like the American members of Congress that I may be bringing next week, they are skeptical. Some Chinese tell me that it would not be good for China, if American firms brought their capital here in great numbers.
You tell me, and this is where I may differ greatly, what's the problem if someone wants to loan a couple of million dollars so that you can provide a service and create opportunities for other people is this great country?
I understand that some Chinese think that it would be better for China to develop its own technologies, rather than to bring some of our technologies here to China. My answer is that China should not spend time trying to copy technologies that already exist. It would be far better off devoting its considerable talents to developing the next generation of technologies. Let me conclude by saying, I am extremely excited about the possibilities that the Internet is creating for all of us in this new century. With the Internet, the fastest growing communication tool ever invented, the United States and China will enter a new relationship.
And after all the speeches, after all the discussions, after all the debates -- it is our turn to act. What is important is not what we say. What is important is what we do.
I cannot predict what will happen, obviously, in our Congress. I cannot predict what will happen in China. One doesn't know at this point the choices that any of us may make in the future. But in our country President Clinton wants us to make the right choice, to give China entry into the World Trade Organization, so that the great promise of the new Internet age will be there for all of the people of China.
Thank you very much for inviting me to this most important conference.
(end text)
(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: usinfo.state.gov)
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