Speech by Li Keqiang at the second Lancang-Mekong Cooperation Leaders’ Meeting

As we can see, the LMC is rooted in our traditional friendship and built on our shared interests. It conforms to the trend of our times and the expectation of our people. It is most solidly-based and therefore can be most enduring. The three pillars of LMC dovetail with those of the ASEAN Communities. It would help narrow the development gap among ASEAN members, boost ASEAN integration, and complement China-ASEAN cooperation. It will not replace other sub-regional cooperation frameworks. Instead, it can develop side by side with the GMS and other mechanisms in a mutually reinforcing manner.

The world today is undergoing major development, transformation and adjustment. Peace and development remain the call of our times. The global economy is picking up. China and the Mekong countries are having sustained and robust economic growth. All these have brought the LMC new opportunities and vast potential for further development. We must seize the opportunities and build on the momentum with greater resolve, better coordination and more effective measures. It is time to steer the LMC from a phase of nurturing to one of further growth toward setting an example of sub-regional and South-South cooperation. To make that happen, let us work together in the following areas:

First, do a good job in water resource cooperation. Water is essential to life, to production and to the environment. The Lancang-Mekong River has ample water resources to bolster economic and social development in our region. The key lies in our mutual trust, understanding and support. We need to have better upper- and down-stream coordination to take care of each other’s concerns and strike the right balance between the economy and the environment. Over the past 15 years, China has provided without fail hydrological data of the Lancang River during the flood season. Cascade development of hydropower in the Lancang River will not deplete the river; it can help adjust the water level in dry and rainy seasons. This would be conducive to the efforts by down-stream countries to fight floods and droughts. 

To make sure that water resources are used in a sustainable way, we can work on a five-year plan of action for water resource cooperation, step up emergency response to droughts and floods, conduct joint research on water resources and climate change, and improve the monitoring system for water quality. China suggests that we make full use of the Water Resources Cooperation Center, hold the Water Resources Cooperation Forum, conduct more policy dialogue, information sharing and technical cooperation, and put in place a water resource cooperation platform that all of us stand to benefit from. Our cooperation came into being because of our shared river, and harnessing the river for our common good is essential to our future success.

Second, enhance industrial capacity cooperation including the building of water conservancy facilities. Given their rapid industrialization, urbanization and agricultural modernization, the Mekong countries are all in pressing need of more water conservancy infrastructure. For its part, China has cost-effective electrical equipment and construction capacity and a wealth of experience in building mega water conservancy projects, wells on plains, small- and medium-sized reservoirs in mountainous areas, which are well suited to the needs of the Mekong countries. 

China supports its companies in undertaking hydropower plants, reservoirs, irrigation and drinking water projects in the Mekong countries. Such cooperation should follow the principle of sustainable development and aim at win-win results. In railway, highway, port, airport and communications, we also see vast prospects for industrial capacity cooperation. It is important that we implement the Joint Statement on Production Capacity Cooperation, and draw up a connectivity plan and a plan of action for industrial capacity cooperation. An alliance for the promotion of industrial capacity and investment cooperation among Lancang-Mekong countries and a Lancang-Mekong Business Council can be explored and established. 

We need to join efforts in ensuring the success of existing economic, trade and cross-border cooperation zones while striving to set up new industrial parks based on distinctive local strengths. China proposes that we initiate the first phase of the BeiDou Positioning and Navigation Satellite Service System Construction and Civil Application Project in the Area of Lancang-Mekong River. While continuing to deliver the concessional loans and preferential export buyers’ credit it pledged at the first LMC Leaders’ Meeting, China will offer additional concessional loans and the second batch of special loans on international industrial capacity and equipment manufacturing cooperation to be used on agreed projects. In this connection, incentives on tax and land use by partner countries would be helpful.  

Third, scale up agricultural cooperation. Agriculture is a key sector for all Lancang-Mekong countries in terms of ensuring food security and raising farmers’ income. China and the Mekong countries are important partners in agricultural cooperation. Mekong countries’ fruit exports to China have risen by 21% annually on average in the recent decade. Notwithstanding our trade deficit with the Mekong countries in agricultural produce, we will not go for protectionism. Rather, China is ready to import more quality agricultural products to meet the diverse consumer needs at home. 

China supports its companies in carrying out downstream processing cooperation in the Mekong countries to raise the added value and competitiveness of agricultural products and jointly explore third markets. China is ready to deepen cooperation with the Mekong countries on agricultural science and technology, and work together to build joint agro-technology laboratories and technology demonstration centers, develop a set of standards for agricultural products, and implement key projects including artificial releasing and enhancement and insect control. China proposes setting up a Lancang-Mekong Agriculture Cooperation Center to serve as a platform for technological exchange, joint research and investment and trade cooperation. China will host the second LMC Village Head Forum in Yunnan, and welcomes the active participation of your countries therein. 

Fourth, step up human resource cooperation. A well-educated work force is critical for faster development and poverty reduction in the Lancang-Mekong countries. We must turn our rich labor pool into a reservoir of high-caliber human capital. China is ready to enhance human resource cooperation with the Mekong countries to help train more urgently-needed professional talents. 

This year China will provide the Mekong countries with 2,000 opportunities for short-term workshops and on-the-job education with degree or diploma and 100 scholarships for four-year undergraduate study. We will invite your medium and senior ranking officials to China for training courses in agriculture, medical and health care, water conservancy and other areas. China will also provide staff training courses for the national secretariats/coordination units of the five Mekong countries. 

China proposes the setting-up of a joint working group on education to map out an overall plan for our cooperation in this field. We need to encourage our universities to conduct joint training programs and explore a mechanism for mutual recognition and transfer of study credits. Cooperation between vocational education institutions should be enhanced and China supports the opening of Lancang-Mekong vocational education centers in the Mekong countries. 

Fifth, advance medical and health care cooperation. Good health is central to the happiness of each individual and the prosperity of every nation. The Lancang-Mekong region still faces a daunting task of tackling infectious diseases such as malaria, dengue fever, tuberculosis, and HIV/AIDs, which respect no national borders. China is ready to put in place joint prevention and control mechanisms for combating infectious diseases and carry out cross-border actions and programs with countries concerned. We need to build a malaria elimination network in the Lancang-Mekong sub-region to enhance the health security of this region. Chinese medical workers will continue to carry out free operation and treatment of patients with cataract, heart disease and dental defects in the Mekong countries through programs such as the Brightness Action, Love Heart Journey and Smile Action. We will also provide free eyesight tests and optometric services to local primary and middle school students of your countries.