(applause)

Good afternoon.

It is a great honor for me to be here in Shanghai,

and to have this opportunity to speak with all of you.

I'd like to thank Fudan University's President Yang for

his hospitality and his gracious welcome.

I'd also like to thank our outstanding Ambassador,

Jon Huntsman, who exemplifies the deep ties and respect

between our nations.

I don't know what he said, but I hope it was good.

(laughter)

What I'd like to do is to make some opening remarks,

and then what I'm really looking forward to doing is taking

questions, not only from students who are in the

audience, but also we've received questions online,

which will be asked by some of the students who are here in the

audience, as well as by Ambassador Huntsman.

And I am very sorry that my Chinese is not as good as your

English, but I am looking forward to this chance to have a dialogue.

This is my first time traveling to China,

and I'm excited to see this majestic country.

Here, in Shanghai, we see the growth that has caught the

attention of the world -- the soaring skyscrapers,

the bustling streets and entrepreneurial activity.

And just as I'm impressed by these signs of China's journey

to the 21st century, I'm eager to see those ancient places that

speak to us from China's distant past.

Tomorrow and the next day I hope to have a chance when I'm in

Beijing to see the majesty of the Forbidden City and the

wonder of the Great Wall.

Truly, this is a nation that encompasses both a rich history

and a belief in the promise of the future.

The same can be said of the relationship between our two countries.

Shanghai, of course, is a city that has great meaning in the

history of the relationship between the United States and China.

It was here, 37 years ago, that the Shanghai Communique opened

the door to a new chapter of engagement between our

governments and among our people.

However, America's ties to this city -- and to this country --

stretch back further, to the earliest days of America's independence.

In 1784, our founding father, George Washington,

commissioned the Empress of China,

a ship that set sail for these shores so that it could pursue

trade with the Qing Dynasty.

Washington wanted to see the ship carry the flag around the

globe, and to forge new ties with nations like China.

This is a common American impulse --

the desire to reach for new horizons,

and to forge new partnerships that are mutually beneficial.

Over the two centuries that have followed,

the currents of history have steered the relationship between

our countries in many directions.

And even in the midst of tumultuous winds,

our people had opportunities to forge deep and even dramatic ties.

For instance, Americans will never forget the hospitality

shown to our pilots who were shot down over your soil during

World War II, and cared for by Chinese civilians who risked all

that they had by doing so.

And Chinese veterans of that war still warmly greet those

American veterans who return to the sites where they fought to

help liberate China from occupation.

A different kind of connection was made nearly 40 years ago

when the frost between our countries began to thaw through

the simple game of table tennis.

The very unlikely nature of this engagement contributed to its

success -- because for all our differences,

both our common humanity and our shared curiosity were revealed.

As one American player described his visit to China --

"[The] people are just like us...The country is very similar

to America, but still very different."

Of course this small opening was followed by the achievement of

the Shanghai Communique, and the eventual establishment of formal

relations between the United States and China in 1979.

And in three decades, just look at how far we have come.

In 1979, trade between the United States and China stood at

roughly $5 billion -- today it tops over $400 billion each year.

The commerce affects our people's lives in so many ways.

America imports from China many of the computer parts we use,

the clothes we wear; and we export to China machinery that

helps power your industry.

This trade could create even more jobs on both sides of the

Pacific, while allowing our people to enjoy a better quality of life.

And as demand becomes more balanced,

it can lead to even broader prosperity.

In 1979, the political cooperation between the United

States and China was rooted largely in our shared rivalry

with the Soviet Union.

Today, we have a positive, constructive and comprehensive

relationship that opens the door to partnership on the key global

issues of our time -- economic recovery and the development of

clean energy; stopping the spread of nuclear weapons and

the scourge of climate change; the promotion of peace and

security in Asia and around the globe.

All of these issues will be on the agenda tomorrow when I meet

with President Hu.

And in 1979, the connections among our people were limited.

Today, we see the curiosity of those ping-pong players

manifested in the ties that are being forged across many sectors.

The second highest number of foreign students in the United

States come from China, and we've seen a 50% increase in the

study of Chinese among our own students.

There are nearly 200 "friendship cities" drawing our communities together.

American and Chinese scientists cooperate on new research and discovery.

And of course, Yao Ming is just one signal of our shared love of

basketball -- I'm only sorry that I won't be able to see a

Shanghai Sharks game while I'm visiting.

It is no coincidence that the relationship between our

countries has accompanied a period of positive change.

China has lifted hundreds of millions of people out of

poverty -- an accomplishment unparalleled in human history --

while playing a larger role in global events.

And the United States has seen our economy grow along with the

standard of living enjoyed by our people,

while bringing the Cold War to a successful conclusion.

There is a Chinese proverb: "Consider the past,

and you shall know the future."

Surely, we have known setbacks and challenges over the last 30 years.

Our relationship has not been without disagreement and difficulty.

But the notion that we must be adversaries is not predestined

-- not when we consider the past.

Indeed, because of our cooperation,

both the United States and China are more prosperous and more secure.

We have seen what is possible when we build upon our mutual

interests, and engage on the basis of mutual respect.

And yet the success of that engagement depends upon

understanding -- on sustaining an open dialogue,

and learning about one another and from one another.

For just as that American table tennis player pointed out --

we share much in common as human beings,

but our countries are different in certain ways.

I believe that each country must chart its own course.

China is an ancient nation, with a deeply rooted culture.

The United States, by comparison, is a young nation,

whose culture is determined by the many different immigrants

who have come to our shores, and by the founding documents that

guide our democracy.

Those documents put forward a simple vision of human affairs,

and they enshrine several core principles --

that all men and women are created equal,

and possess certain fundamental rights;

that government should reflect the will of the people and

respond to their wishes; that commerce should be open,

information freely accessible; and that laws,

and not simply men, should guarantee the administration of justice.

Of course, the story of our nation is not without its

difficult chapters.

In many ways -- over many years --

we have struggled to advance the promise of these principles to

all of our people, and to forge a more perfect union.

We fought a very painful civil war,

and freed a portion of our population from slavery.

It took time for women to be extended the right to vote,

workers to win the right to organize,

and for immigrants from different corners of the globe

to be fully embraced.

Even after they were freed, African Americans persevered

through conditions that were separate and not equal,

before winning full and equal rights.

None of this was easy.

But we made progress because of our belief in those core

principles, which have served as our compass through the darkest of storms.

That is why Lincoln could stand up in the midst of civil war and

declare it a struggle to see whether any nation,

conceived in liberty, and "dedicated to the proposition

that all men are created equal" could long endure.

That is why Dr. Martin Luther King could stand on the steps of

the Lincoln Memorial and ask that our nation live out the

true meaning of its creed.

That's why immigrants from China to Kenya could find a home on

our shores; why opportunity is available to all who would work

for it; and why someone like me, who less than 50 years ago would

have had trouble voting in some parts of America,

is now able to serve as its President.

And that is why America will always speak out for those core

principles around the world.

We do not seek to impose any system of government on any

other nation, but we also don't believe that the principles that

we stand for are unique to our nation.

These freedoms of expression and worship --

of access to information and political participation --

we believe are universal rights.

They should be available to all people,

including ethnic and religious minorities --

whether they are in the United States, China, or any nation.

Indeed, it is that respect for universal rights that guides

America's openness to other countries;

our respect for different cultures;

our commitment to international law;

and our faith in the future.

These are all things that you should know about America.

I also know that we have much to learn about China.

Looking around at this magnificent city --

and looking around this room -- I do believe that our nations

hold something important in common,

and that is a belief in the future.

Neither the United States nor China is content to rest on our achievements.

For while China is an ancient nation,

you are also clearly looking ahead with confidence, ambition,

and a commitment to see that tomorrow's generation can do

better than today's.

In addition to your growing economy,

we admire China's extraordinary commitment to science and

research -- a commitment borne out in everything from the

infrastructure you build to the technology you use.

China is now the world's largest Internet user --

which is why we were so pleased to include the Internet as part

of today's event.

This country now has the world's largest mobile phone network,

and it is investing in the new forms of energy that can both

sustain growth and combat climate change --

and I'm looking forward to deepening the partnership

between the United States and China in this critical area tomorrow.

But above all, I see China's future in you --

young people whose talent and dedication and dreams will do so

much to help shape the 21st century.

I've said many times that I believe that our world is now

fundamentally interconnected.

The jobs we do, the prosperity we build,

the environment we protect, the security that we seek --

all of these things are shared.

And given that interconnection, power in the 21st century is no

longer a zero-sum game; one country's success need not come

at the expense of another.

And that is why the United States insists we do not seek to

contain China's rise.

On the contrary, we welcome China as a strong and prosperous

and successful member of the community of nations --

a China that draws on the rights, strengths,

and creativity of individual Chinese like you.