On Thursday, prior to his upcoming visit to the Republic of Korea (ROK), scheduled for April 10 and 11, Chinese Premier Wen Jiabao gave a group interview to reporters from 19 ROK media outlets, including the Korean United Telecom Agency, Chosun Ilbo, Dong-A Ilbo and KBS. The full text is as follows:

Wen: Good afternoon, everyone! I have been looking forward to an official visit to the Republic of Korea (ROK) for a long time. I will carry the spirit of friendship and cooperation with me and would like to convey, through you, the cordial greetings and good wishes of the Chinese to the people of Korea. Now I am ready to answer your questions.

Reporter: Thank you for this interview. I hope you have a successful visit to South Korea and Japan. China plays a very important role in the six-party talks. What are your thoughts on establishing a peace mechanism for the Korean Peninsula? What kind of role might China play in the reunification of North and South Korea?

Wen: The Korean War concluded over half a century ago. Despite this, there is still no mechanism for peace, which is most unusual. To establish a peace mechanism for the peninsula, the most important thing is erase all traces of the Cold War, in all its forms. We hope relevant parties will consult further to create the conditions necessary to establish a peace mechanism and maintain peace in the long-term.

With regard to the reunification of the Korean Peninsula, that will be a decision for the ROK and the Democratic People's Republic of Korea (DPRK). They must resolve their issues independently and peacefully. We hope that the two nations will negotiate, increase mutual trust, improve bilateral relations, and strive to realize a peaceful reunification. However, the Chinese government is willing to continue to play a positive role in this regard.

Reporter: The ROK and China dispute the history of Koguryo. China has written the history of Koguryo into its own history books. I think this problem could become a stumbling block to the Sino-ROK friendship. In particular, there are disputes between South Koreans and Chinese over Changbai Mountain, which has led to a rise in tensions. Could you please brief us on this issue?

Wen: China and the ROK have a long history of friendly exchanges. This is favorable environment for the development of bilateral relations. China and the ROK have no territorial disputes. This is an important political foundation for the development of bilateral relations. We should handle these issues properly; separating academic study from political issues, and present issues from historical issues, so as to prevent them from affecting the normal relationship between the two countries.

Reporter: During Chinese President Hu Jintao's visit to the ROK at the end of 2005, the ROK announced that it recognized China as a full market economy, the first whose trade with China exceeds $100 billion to do so. The ROK and China are very close to each geographically and have many things in common. Economic cooperation between the two countries has been significant for both. Does China have any concrete plans to increase economic cooperation with the ROK?

Wen: In the 15 years since China and the ROK established diplomatic relations, bilateral economic and trade relations have developed rapidly. The volume of trade between the two countries has multiplied by 26 to hit US$130 billion in 2006. In addition, the ROK has more than 30,000 enterprises in China, involving a total investment of US$35 billion. Each year, bilateral personnel exchanges exceed 5 million. The close trade ties between China and the ROK are based on the principles of equality, mutual benefit and complementarity.

In 2005, Chinese President Hu Jintao visited the ROK. In 2006, ROK President Roh Moo-hyun visited China. Both countries confirmed the target for the development of economic and trade relations, establishing a target of $200 billion worth of trade by 2012. In addition, the two countries also formulated the "Medium and Long-Term Development Plan for China-Korea Trade and Economic Cooperation," in which they agreed on 5 investment and trade liberalization measures and defined 12 key areas of cooperation.

As a result of economic globalization, China-ROK trade ties have entered a new era, making it necessary to expand cooperation, improve the quality of that cooperation, and cope with challenges together. Expanding cooperation makes it necessary for us to adjust the structure of our relationship and increase cooperation in the fields of energy-saving, environmental protection, high-tech and information and others; improving quality refers to giving full play to the advantages of the two countries and promoting the sustainable and balanced development of bilateral trade; coping with challenges together requires that the two nations increase consultation on issues of common concern within the framework of the World Trade Organization, the Asia Pacific Economic Cooperation forum, the ASEAN 10+3, the East Asia Summit and other international mechanisms.

China appreciates the fact that the ROK has recognized China as a full market economy. An independent study on a free trade zone (FTA) has been completed and official research is now under way. China and the ROK should develop a mutually beneficial FTA proposal as soon as possible to pave the way for actualization.

Reporter: The "Korean wave" has played an important role in strengthening the friendship and expanding exchanges between the peoples of the two countries. Recently, however, it has been observed that the "Korean wave" is slowing down. What are your thoughts on this issue? Does China have any plans to promote cultural exchanges with the ROK this year?

Wen: China and the ROK have a long history of cultural exchanges, which contributes to understanding and friendship between the two people. Chinese people, especially young people, like Korean culture. The Chinese government will continue to encourage cultural exchange activities between the two countries. This year is the 15th anniversary of the establishment of diplomatic relations between China and the ROK, as well as the Year of China-ROK Exchange. Of the 47 exchange projects sponsored by the Chinese government, the majority are cultural exchange programs. I will attend the opening ceremony for the Year of China-ROK Exchange during my upcoming visit. I believe that this special year will promote cultural exchanges between the two countries.

Reporter: In the process of improving the economic structure, China has gradually reduced many preferential policies for foreign-funded enterprises. Foreign-funded enterprises have undergone great changes in China's business environment. More and more enterprises are worrying about this. Could you please talk about this issue?

Wen: Since the beginning of reform and opening up, China has implemented a series of preferential policies to encourage foreign investment and introduce advanced foreign technology. This has not only promoted China's economic development, but strengthened China's economic relations with all countries. China's economy is now in an important period of restructuring. We have replaced the original criteria for preferential policies, which were offered in accordance with regions and property investment, with one in accordance with industry. At the latest National People's Congress, a new corporate income tax law was adopted, which specifies income taxes for domestic and foreign enterprises. This actually enables foreign and domestic enterprises to compete on an equal footing and creates a fair playing field.

We retained the preferential policy system for small, low-profit and hi-tech foreign-funded enterprises as well as foreign-funded enterprises in Special Administrative Regions and western regions. Foreign-funded enterprises that have signed contracts will be given a five-year transitional period. By doing this, the new preferential policies will not affect the operation of foreign-funded enterprises in China. We have sound foreign laws and a fair and stable market environment. These are the most desirable conditions for attracting foreign investment.

China has a tremendous labor resources advantage in terms of labor quantity, quality and cost. We will improve our management of the labor market and the training of the labor force. I want to emphasize that we protect the legitimate interests of foreign investors in China, and ask that foreign-funded enterprises protect the legitimate rights and interests of the Chinese workers.

Thank you all.

By People's Daily Online