Mr. President of the Senate, excellencies, distinguished guests, nushimen, xianshimen, ladies and gentlemen：

it is my great pleasure to welcome you to the China Investment Forum 2011 once again here – in the beautiful city of Prague.

Last year, the main message of the expert speakers was that the West should not fear China. Rather – the West should fear IF China failed. Now, one year later, German export to China has significantly contributed to growth of economy both in Germany and indirectly in the Czech Republic. Czech politians are starting to point out our need to diversify trade and export to new territories including China. Even Brussels has been discussing China’s involvement in stabilizing the eurozone. So, we were not far from the truth last year.

Today I am happy to kick off a new round of expert discussions. Even though the topics of this year’s discussions vary quite widely, they have one point in common. Chinese market is a growing and developing market. As such it gives European companies an opportunity to be part of the development. Profitably, of course, which will demonstrate speakers both today and tomorrow at the CIF Business Day. All our success stories in China have one more thing in common. Co-operation is the right way forward.

We must realize that both the Czech Republic and the People’s Republic of China have different economic and political models that are based on their own history and culture. Both countries have to deal with a long list of problems. No need to list the Czech ones as we feel them every day. In China the government has to find solutions for high inflation, too expensive real estate, local government debt and transition to a more sustainable growth powered by domestic consumption – just to name the most pressing ones.

Despite domestic issues and difficulties it is the international trade that has allowed milions to rise from poverty in China. And it is the international trade that drives growth in the Czech Republic. It is therefore to our mutual benefit to have this bigger picture in mind.

Active dialogue, healthy economic exchange, and co-operation is what China Investment Forum stands for.

I hope you will enjoy the discussions today.

Xie xie. Thank you.

Petr Hyl

Executive Chairman

China Investment Forum