I would like to welcome you all to this symposium organised jointly by Treasury and the State Development Planning Commission.
I would particularly like to welcome Vice Minister Wang and his delegation to Canberra.
Australia's relationship with China is one of the Government's most important foreign policy priorities.
And it is functions such as this, which help broaden and strengthen the bilateral relationship between our two countries.
Today's discussion of both the similarities and differences in our financial markets will, I hope, help us work more closely together in ensuring that the Asia‑Pacific region maintains its global significance in the face of strong competition from both the Europe and the US.
China is one of Australia's most important trading partners and these trading links continue to grow.
A distinguishing feature of the Chinese and Australian economies is that both came through the Asian economic crisis relatively unscathed.
In China's case, foreign exchange reserves and a sound balance of payments situation helped insulate it from the worst effects of the crisis.
Indeed, China's economic performance over the past couple of years stands out from the rest of the region.
In Australia's case, our performance can be put down to a mix of macroeconomic policies and a flexible economy.
Australia is now enjoying its longest economic expansion for almost 30 years with 12 consecutive quarters of more than 4 per cent annualised growth.
Importantly, this sustained strong growth has continued to be achieved with low inflation.
A combination of strong growth and moderate wage and price pressures led to the national unemployment rate falling to 6.3 per cent in July 2000, its lowest level in a decade.
Although world commentators have lauded Australia's recent economic performance, like China we know that good economic results do not just happen by accident - they are the result of past and sometimes difficult reforms.
As part of the macroeconomic policy this Government has pursued since its election in 1996, we formalised the independence of the Reserve Bank in conducting monetary policy.
The Reserve Bank's medium‑term focus on controlling inflation has made a major contribution to the Australian economy's growth.
This Government has supported a range of microeconomic reforms, leading to a more productive, flexible economy. With such reforms resources are free to move to industries where they contribute more to productivity and output growth.
Our reforms have included deregulation of the labour market as well National Competition Policy Agreements between the Commonwealth and States.
These included the set up in 1998 of a competitive National Electricity Market.
Australia's communications market was opened up to full competition in 1997. This has resulted in new players coming into the market along with big reductions in prices and big improvements in service.
This Government has partly privatised Telstra, Australia's major telecommunications company, and remains committed to selling its remaining equity, subject to an independent assessment of service levels in regional Australia.
We have undertaken broad financial sector reforms designed to place Australia at the cutting edge. Our system of financial market regulation will enable Australian financial service organisations to face new challenges and turn them into opportunities.
Although other speakers today will delve into greater detail on the Government's financial sector reforms, I want to touch on the benefits that flow from the reform process.
Reform is a process that the Australian Government knows it simply cannot afford to stop.
As the reforms of the past have helped us achieve the prosperity we now enjoy, the reforms of today will ensure the prosperity of tomorrow.
Australia has been on a long journey of financial sector reform, much of it initiated by this Government.
This process has been driven by a desire to have a more robust, competitive and efficient financial sector.
Our 1997 overhaul of prudential regulation was nothing short of revolutionary.
The Financial System Inquiry resulted in the twin regulators of financial institutions and markets, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission.
This work is now being used as a model for regulatory reform by other countries in the Asia Pacific, not to mention in the UK and North America.
In fact, I firmly believe that our regulatory methods and institutions have achieved standards that make us at or ahead of "world's best practice".
Removing barriers for foreign financial institutions, and deregulating the financial sector has resulted in a financial service industry that is world class both in respect of the integrity of the participants and in the quality and range of services offered.
Not only has it produced a greater integration with world capital markets, it has also deepened our local financial markets.
A more efficient financial sector also helps allocate funds to those that will use them most efficiently. It goes without saying that consumers are better off when they have more financial products to choose from.
It has been encouraging to see China step up its economic reform over the past few years.
We now see economic reform proceeding on a broad front particularly Premier Zhu's agenda for reforming State‑Owned Enterprises, reforming China's social security system, especially the pension system, and beginning the path towards substantial reform of China's financial institutions
As a result of our own reform process Australia understands some of the situational realities that China must consider as it travels the path of reform, the difficulties in gaining acceptance for reform and the constraints on implementing reform.
We welcome the opportunity to share with China some of the lessons we have learnt from our journey and wish China well in it's continuing journey down the road of reform.
I appreciate the substantial changes that have taken place in China, particularly in the coastal cities and I understand the changes that are still to take place particularly in the Western regions of China.
For both our countries the reform journey can be demanding and difficult and the way forward is not always clear. For a country as enormous and significant as China and with its huge population we do not underestimate the challenges ahead. I believe that both Australia and China appreciate the challenges before them and the importance of the reform journey to ensuring the prosperity of our people.
I welcome the opportunity for our two nations to find opportunities like today's seminar for meaningful bilateral co‑operation. Opportunities like today present a wonderful opportunity for us to explore ways to strengthen the links between our governments, regulators and industry participants.
I particularly welcome the opportunity to showcase the Australian financial services industry. Our financial service firms are efficient, profitable and internationally competitive.
One area where I believe we can work together is in the area of pension reform. Nations around the world are looking for ways to ensure the prosperity of our ageing population.
In Australian we have a three‑pronged pension system - that is, government‑provided pensions, voluntary contributions made by workers and the compulsory contributions from employers.
As our Treasurer has recently indicated our system is not perfect but we have arrived at our current position after a lot of work - work we should share with our friends.
I look forward to seeing business, government and academic organisations working with their Chinese counterparts to learn from each other and help us achieve our respective goals.
I commend to my Chinese colleagues those Australian firms looking for ways to assist and participate in China's exciting reform agenda. To that end, the Australian Government hopes China will soon look favourably on permitting Australian companies greater access to Chinese markets.
I believe Australian firms have much to share and much in common with their Chinese counterparts.
Australia sees China's admission to the WTO as a sign of its understanding of the need for constant reform in a world where the speed of change can be daunting.
We welcome China's desire to be true player in the world economy and all its institutions.
I think it fair to say that the changes required of China arising from WTO membership will ultimately be in China's own best interest and will add to the prosperity of its people.
In the face of increasing globalisation we must make sure the region's financial sector regulation moves in a consistent direction.
To achieve this, Australia is working through both bilateral and multilateral relationships.
Australia is working within APEC to encourage structural reforms that will underpin the development of strong and secure financial markets for our region.
China, as host of APEC next year, will play an important role in supporting APEC Finance Ministers' work in this area.
Australia is also continuing to pursue a broad range of economic reforms on the domestic front.
We are in the midst of the most fundamental tax reform program in Australia's history.
Financial sector reforms are continuing with the progressive implementation of our desire to build world class system of financial regulation. That is, making the economy more efficient while ensuring consumer protection and market integrity.
As we enter the 21st Century, I believe we must work together with countries in or region to find ways to build closer economic ties and symposiums like this are an important step in learning from each other and building understanding.
I anticipate some thought‑provoking discussion today and I hope that Vice Minister Wang and his delegation will find it a worthwhile experience.