all these were based on the principle of reciprocal cooperation with mutual benefits, without any one of the investment contracts forced to be signed by the chinese government. strict observance of the contract has always been advocated by europe and the united states, and is gradually appreciated by the chinese enterprises and residents. but now all of a sudden, the us alleged that chinese laws and economic practices impose “ forced technology transfer ”, “ forced ipr transfer ” and even used the word “ theft ”. that was not only a challenge to the basic facts, but also a humiliation to the chinese people. it is a common practice for any rising economy to learn the knowledge and experiences of developed countries. that is why there emerged the so - called “ catching up and imitation ” concept in development economics. over more than ten centuries in history, china ’ s science and technology was second to none in the world. our intangible assets have made exceptional contributions to the development of human civilization. the well - known “ four great inventions ” of ancient china have contributed to the emergence of capitalism in europe. without gunpowder, compass, and the printing technology, there would be no modern industrial economy. great men in history such as francis bacon and karl marx have all spoke highly of that. that being said, it seems in retrospect that our ancestors have their own regrets. though they have invented so many things, they only failed to invent “ ipr ”. looking back into history, it should be noted that imitation and even plagiarism of technology among countries were very common during the industrial age of europe and the us. some companies even tried to acquire advanced technology through dishonest and unprincipled means. this is a specific historical time phase which can not be bypassed. the developed countries have all gone through the process of standardizing intellectual property protection. but it is by building upon the work of their predecessors that each of the country achieved new breakthroughs in and made new contributions to technological advancement. thus, we believe that no country, including the us, can realize modernization by theft. but rather, modernization can only be achieved through hard work and strenuous efforts of their own peoples. it was originated from the western countries to trade technology for market or to trade market for technology. based on the principle of fairness, technology trading is a fundamental market economy activity commonly accepted. over the past years, developed countries, including 3 / 9 bis central bankers'speeches european countries and the us,

. over recent years, the renminbi exchange rate against a basket of currencies has kept stable in a global context. the chinese government has made great efforts to maintain a balance between the flexibility and stability of renminbi exchange rate, which was widely recognized by the international community. since the early 1990s, the us has constantly threatened china with the allegation of “ exchange rate manipulation ”. by definition of the us treasury department, three quantitative criteria need to be fulfilled concurrently to become a currency manipulator, including : 1 ) an annual trade surplus of over $ 20 billion with the us, 2 ) a current account surplus accounting for 3 percent of gdp, and 3 ) the value of foreign exchange purchased for exchange rate interference purpose exceeding 2 percent of gdp. in 2018, china ’ s current account surplus was only 0. 37 percent of its gdp, and there was no large amount of foreign exchange purchase, neither did china gain competitive advantage of trade through currency depreciation. so the us government can hardly label china a currency manipulator. over the past decade, all dramatic renminbi depreciations were triggered by external factors. the most recent one in may this year, when offshore chinese yuan dropped over 3 percent against the dollar, was totally caused by the escalated trade friction by the us government. over the years, developed countries had always called for greater flexibility of renminbi exchange rate. 4 / 9 bis central bankers'speeches however, once the renminbi exchange rate formation mechanism became more market - oriented and more elastic, some countries soon adopt an attitude of “ lord ye ’ s love of dragons ”, the actual fear behind professed love, with unfounded suspicion and accusation towards china, which is absolutely ridiculous. as is well - known, despite the recent fx market fluctuations, so far there is no panic among chinese firms and residents. more and more people have realized that it is not realistic to make money from currency speculations. nor is it safe to transfer financial assets overseas. in sophisticated markets, nearly no companies or individuals live on investment returns of foreign currency speculation. even the so - called mrs watanabe in japan actually turned out to be an overstated investment story. it is normal to have temporary fluctuations on renminbi exchange rate. but for the long run, given china ’ s economic fundamentals, continued renminbi depreciation is unlikely. with huge market size and growth potential, china remains to be the