On 5 November, 2016

Your Excellency, Mr Li Keqiang,
Excellencies,
Dear colleagues,

On behalf of the Latvian government and people, I have the honour and pleasure to extend a warm welcome to the Heads of Government of the Central and Eastern European countries and China for participation at the 5th 16 + 1 Heads of Government meeting. I am very pleased that we have the Prime Minister of Belarus as a special guest here at the meeting. I would also like to welcome representatives of the European External Action Service that are attending the meeting as observers.

During the last five years, the 16 + 1 format of cooperation has evolved and progressed: we have joined our efforts to develop the structure of the format and establish different sector mechanisms to promote cooperation in various fields.

In this period, China's investment volume has increased in Central and Eastern European countries and so has the trade volume and number of Chinese tourists. It means that the 16 + 1 format is productive and contributes to the growth of our nations. Therefore, I would like to assure you that Latvia attaches great importance to its cooperation in this format and is willing to develop and promote it in the future. I am confident that this meeting will not only increase our willingness to cooperate with each other, but also stimulate practical action in joint projects.

Dear colleagues,

The role of China in the world is growing, and the European Union is China's main trading partner. It is therefore natural that the Central and Eastern European countries are working to develop cooperation with China. In addition, most of the 16 + 1 countries (namely 11) are European Union Member States and four are EU candidate states.

It is important for Latvia and other partners that the 16 + 1 process should be transparent and accountable, so that it would be in accordance with EU laws and competences, as well as complement the EU Strategic Dialogue with China.

This has been achieved by taking practical steps at the 16 + 1 events which are regularly attended by representatives of the EU and observers of other national institutions. A further aim would be to ensure that the trade between the 16 + 1 countries and the EU-China trade dialogue would be based on the same principles. The Three Seas Initiative and the EU-China Connectivity Platform projects should not overlap, but complement each other, and cooperation in any field should not be in conflict with European Union norms.

This year's summit theme is "Connectivity. Innovation. Inclusive and common development.” I urge you to view the connectivity concept in its broadest sense: as trade routes and cargo flows and transport infrastructure; as technology exchange and innovation; as communication and financial sectors as well as cultural, educational and tourism exchange. Here I would like to refer to the "The Medium-Term Agenda" adopted at the Suzhou Summit and "The Six Priorities" as stated by our colleague, the Prime Minister of China, Mr Li.

First, we must continue to work on creating synergy between the European Union Initiatives, such as the Juncker Plan, the Trans-European Networks and China's Initiatives, such as the Silk Road, the Three Seas Initiative, as well as continued integration of the 16 + 1 cooperation into EU-China Strategic Partnership. It is one of the basic principles of the "RIGA GUIDELINES" document that we will jointly adopt during this meeting and which sets out specific cooperation activities for the next year. It is also the main theme for the side event of the summit - the Think Tank Conference that took place yesterday with the participation of researchers and academics from both the 16 + 1 countries and EU institutions.

Second, we must continue working on inclusion of the existing transport infrastructure of the Central and Eastern European countries into the Silk Road Transport Network and building of new infrastructure where necessary. In order to draw up a unified Central and Eastern European transport network proposal for China, the Secretariat for Coordination of Logistics was established during the 16 + 1 Transport Ministers' meeting in Latvia in May, this year. Latvia has the potential to be 1) a transit base for Chinese goods that can be delivered to Northern Europe through the Logistics Centre "Great Stone”, 2) the target of direct flights that serve Chinese tourists and businessmen traveling to Europe, and 3) Chinese investment location for producing goods for European markets.

The first proof of our commitment to developing the Silk Road Initiative with China is the arrival of the first train container in Riga today.

I consider it a real testimony of the 16 + 1 cooperation, and we should make every effort to make cargo flow regular on this route. Also, in addition to the established direct flights with China and certain countries of Central and Eastern Europe, we must continue working on developing direct flights to Riga and the other cities of Central and Eastern European countries.

Third, we must continue to identify mutually beneficial potential cooperation projects in production infrastructure development, which include the Three Seas and Port Initiatives, as well as special economic zones. This would increase cargo handling potential, production capacity and promote the industrial development of the Central and Eastern European countries.

Fourth, we have great opportunities to develop cooperation in the financial sector, which until now has been the weak link of the 16 + 1 cooperation. Today the 16+1 Investment Fund will be established and so far Latvia, The Czech Republic and Poland have confirmed their membership.

We invite other countries to consider joining this financial instrument to attract funding for 16 + 1 projects. We must conclude setting up the 16 + 1 Interbank Consortium, which would open up opportunities for developing different financial cooperation models.

The fifth sector is trade and the statistical data provide a view of its development. It is a known fact that the trade volume of separate Central and Eastern European countries is low compared to China's market demand, and our strength lies largely in offering niche market products  to the Chinese market. I believe there is a need to exchange experiences and to examine opportunities for developing new solutions and models of trade with China, such as multilateral cooperation models, e-commerce and others. Therefore, we are inviting the 16 + 1 national business support organizations, such as national investment and development agencies and chambers of commerce to the conference in Riga, in May 2017, which will be dedicated to these issues.

Last but not least important is the subject that was highlighted this year - people-to-people contacts and cultural exchange. We must continue to promote and develop cooperation in the sectors of tourism, education, science and culture. One of the most common barriers in business networking is the lack of information about each other. The best way to overcome this obstacle is by getting to know each other through the promotion of tourism and cultural exchange. In addition, we must agree that by developing cooperation in education and science we are investing in the strength of our relationship in the future. In terms of education, we must continue to increase the exchange of students and teachers, language learning and literature translation. Using this opportunity, I would like to thank the Chinese Confucius Institute Headquarters, which, together with the Latvian University, organized the 16+1 Sinologist Conference taking place simultaneously with this meeting in Riga.

Finally, I want to say that there is great potential for our cooperation in science, technology exchange and innovation, as new technologies and innovative solutions are required to achieve progress in the efficiency of a wide range of areas.

Dear colleagues,

Connectivity and innovation are the two main roads for our future cooperation success, development and progress, and I am confident that we will continue to follow this route energetically and purposefully.

With this I would like to end my speech and give the floor to the Prime Minister of China, Mr Li Keqiang.

Thank you!