Firstly, China and India have enough space to cooperate and what we face is a golden period to grow China-India relations. In the mid 1950s, China and India in response to the call of the time, jointly initiated the Five Principles of Peaceful Coexistence which are still shining with strong vitality. The world is undergoing drastic and profound changes, China and India, both ancient civilizations and major developing countries whose combined population accounts for nearly two-fifths of the world’s total, once again responded to the call of our time. Our two countries have seized the historic opportunity of economic globalization and achieved the rapid development. We are now the two largest emerging countries in the world and play increasingly important roles in regional and international affairs.

I am happy to note that since the beginning of the new century, the China-India Strategic Cooperative Partnership for Peace and Prosperity has continued to grow rapidly and our friendly cooperation has yielded fruitful results. The trade volume between our two countries has grown from $ 2.9 billion in 2000 to $ 73.918 billion last year, which increased more than 20 times in ten years.

While working hard to develop itself, China is fully committed to develop a long-term friendship and cooperation with India, promotes the growth of China-India relations with the concept of peaceful development in a positive light and good neighbor. China always views India’s development in a positive light and we regard each other as major partners and friends, not rivals. Premier Wen Jiabao once said that the world has enough space for China and India to cooperate and develop jointly. I think, if the 2.5 billion people of the two countries join hands to promote common development, it will not only benefit the two countries and the two peoples, but also the countries in this region, and will promote the revitalization of Asia. If China and India strengthen collaboration, it will greatly enhance the strength and confidence of the developing countries and promote the development of the international order towards a more just and reasonable direction.

Secondly, China-Nepal relations have been developed comprehensively, and what we face is the huge potential to promote cooperation.

For many years, China and Nepal have treated each other as equals and given each other mutual understanding and respect. China firmly pursues the principle of non-interference in internal affairs of other countries. We respect the rights of the Nepalese people to choose their own social system and model of development. We support Nepal's independence, sovereignty, territorial integrity and national unity and are happy to see an early conclusion of the peace and constitutional process in Nepal and the emergence of a stable, united and prosperous Nepal. The Government of Nepal has consistently adhered to the One China Policy and firmly supports China on issues involving China's core interests. No matter how the international and domestic situation changes, the friendly relations between China and Nepal have been growing in a consistent, steady and healthy manner on the basis of the Five Principles of Peaceful Coexistence. Both Nepal and India are China's good neighbors. China is glad to see Nepal develops friendly cooperative relations with India on the basis of equality and mutual benefit. China always supports Nepal to develop itself by seizing the opportunity and using its unique geographic position, and to play active role in the regional affairs.

I'm glad to see that in recent years, the pragmatic and mutual beneficial cooperation between the two countries has gained a strong momentum. More and more Chinese companies want to seek investment opportunities in Nepal. During Premier Wen Jiabao's visit early this year, he encouraged more competent companies to invest in Nepal and realize common progress. China will continue to encourage and support such trend, strengthen the pragmatic cooperation, enhance people-to-people exchanges, share development opportunities, tackle the challenges and benefit the two countries and the two peoples. We also hope that the political forces of Nepal could reach consensuses through negotiations and dialogues, completing the peace and Constitution-drafting process at the earliest to realize lasting stability and create better atmosphere for economic cooperation.

At present, the international situation is changing rapidly. But generally it's conducive to the development of the Asian countries. China and Nepal need to maintain stability to achieve the development. We once missed the opportunity of industrialization, but now we must seize the opportunities brought by globalization, accelerate the economic development and achieve the prosperity.

Thirdly, the good trilateral relations and cooperation among China, Nepal and India are in the interest of all parties and the region.

Nepal's two neighbors--China and India has realized rapid development, which brought a good opportunity for Nepal. The leaders of Nepal said many times that they hoped to be the dynamic bridge between China and India as well as between China and South Asia. China agrees with this point. At present, the China-India, China-Nepal and Nepal-India relations all keep an active development, which lay the foundation for good interaction for the three countries. I think, strengthening the interaction and exchanges among our three countries and realizing the win-win benefit is our common interests, and is also conducive to the stable development in the region.

China will stick to the policy of "building friendship and partnership with neighboring countries" with neighboring countries and South Asian countries. China is also willing to work with India to jointly support Nepal to realize stability and prosperity, and promotes mutual beneficial cooperation among our three countries.

Excerpts of Chinese Ambassador Yang Houlan statement delivered at a talk program on "India, Nepal and China: An Emerging Trilateral Relations in the 21st Century."