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both an Atlantic and a Pacific power. This is especially true in the area of
economic trade and development. U.S. ties to the countries of the Pacific Rim
are growing dramatically, and our trade with the countries of Asia continues to
blossom.

As we look at China, many in the United States marvel at your phenomenal
double-digit economic growth over the past decade. Moves toward greater
decentralization and liberalization of the Chinese economy -- from agriculture to
light industry to technology-- have contributed to this economic upswing. Private
ownership has expanded here in Shanghai and the sales of private sector
consumer goods has increased dramatically since 1980. Overall, it is reported
that roughly 80 percent of all commodities in China are distributed by the
marketplace at market prices.

Foreign investment in China is also skyrocketing. Closer to home, Taiwan and
Hong Kong have invested many billions in the mainland. In addition, your
experiment in the Shenzhen and Shanghai market districts is a remarkable
success. Today, more than 20 million Chinese are stockholders. The stock
markets in Shanghai and Shenzhen were both successful last year.

The technological development of your country is also progressing at a rapid
pace. I recall that about eight months ago, my name was mentioned in a Guang-
Ming Daily News article about information technology and its economic impact in
Philadelphia. Promoting technology is one of my passions. Shanghai and
Philadelphia are similar in many ways. Both cities would like to move into the
next century as modern, state-of-the-art cities. I believe that information
technology is one area where we can work together. I am encouraging this
cooperation because I believe it will benefit not only Shanghai and Philadelphia
but our two countries as well. I discussed the idea of technology cooperation
with many of your leaders including Mayor Xu Kwang Di, and am pleased to
report that it was received favorably.

Of course, economic and technological development are not always
painless. There are the usual problems that come when a highly centralized
economy moves toward market reforms. Inflation, unemployment, crime, and a
growing gap between rich and poor are often some of the effects. Yet these
difficulties can be managed and reversed. What is important is that the people of
China be given greater opportunities and abilities to advance Chinese society in
ways that benefit all citizens.

Chinese leaders have made clear that China's first goal is to raise the living
standards of its people. Continued advancement down the path of economic
reform will bring this about. Clearly, the changes so far have resulted in a better
life for the Chinese people. It is estimated that by the year 2000, China's per
capita Gross National Product will be four times greater than it was in 1980, and
that it will double again by 2010. You have good reason to be optimistic about
your economic future.