Premier Li Keqiang (R) meets Lionel Barber, editor-in-chief of Britain's Financial Times, at the Great Hall of the People in Beijing March 31, 2015.[Photo/Xinhua]

Barber: Premier Li, may I share with you one clear impression from my visit to Japan regarding Japan-China relations. The message from the highest level with whom I conducted many interviews was that China-Japan relations have improved. There is reference to the meeting between President Xi and Prime Minister Abe. And I wonder whether you think there is improvement, do you agree with that? And whether this is durable or just a pause. And there may be problems ahead, for example around the 70th anniversary and World War II statement that the Japanese government is planning to make.

Li Keqiang: The current China-Japan relationship is still in a quite difficult spot. There is wish from both sides for improved relations. But such improvement needs a foundation. The crux of the issue is how to view the history of the Second World War, and whether one can draw lessons from that part of history to ensure that the war will never repeat itself. I suppose when you were in Japan, you may have heard such views that the war took place 70 years ago, and the war was something done by the past generation and has little to do with the current generation of the Japanese people. Why does the Chinese side refuse to let it go? I don't think this is something about the Chinese refusing to let that part of history go. What we believe is history should not be forgotten. Mankind has successfully kept a large world war at bay in the past 70 years. We believe it is because lessons have been drawn from that part of history in which mankind acted stupidly. It is common knowledge in political science that leaders of a country, while inheriting the achievements made by their predecessors, should also shoulder the responsibilities for crimes committed by past generations. This is how one establishes his true sense of national identity and responsibility.

This year marks the 70th anniversary of the victory of the Chinese people's war of resistance against Japanese aggression and the world anti-Fascist war. Many countries in the world are considering holding activities to mark this important moment. As I said at my press conference a few weeks ago, this is both a test and an opportunity to China-Japan relations. History, if not forgotten, can serve as a guide for the future. That will give us the opportunity for improving China-Japan relations. Just now I mentioned the “stupid war”. What I mean is the stupid war of aggression waged by those militarists. We have the highest respect for all anti-Fascist fighters.

Barber: Could I turn to the Asian Infrastructure Investment Bank? Are you very pleased that the British have now started a stampede to join the bank?

Li Keqiang: The original consideration for putting forward the AIIB initiative is there is a large funding shortfall for infrastructure development in Asia, especially connectivity building. This shortfall needs to be met with the support of several multilateral financing institutions. The AIIB is going to be an open and transparent institution. It welcomes the participation of countries from outside the Asian region. And we welcome British application for joining the bank. China and the UK should continue to work together to develop a partnership for growth. I wish to emphasize that the AIIB and ADB can work in parallel in promoting Asian development. And the initiative of AIIB is not to reinvent the wheel. Rather it is intended to be a supplement to the current international financial system. China wants to work with others to uphold the existing international financial system. And we are ready to continue to play our role in building the current international financial system. And if there is a need for reforming the current system, we are also ready to work with other countries to help make the system more just, reasonable and balanced.

Barber: So Premier, you don't share the view that I sometimes hear in China that we did not build the liberal post-war financial system, so therefore we have to create a new order. You are saying to me this is complementary, not a challenge, to the World Bank, the Asian Development Bank.

Li Keqiang: Let me first emphasize China was deeply involved in establishing the post-war international order from the very outset. China was a permanent member of the UN Security Council and a founding member of this world body. Although afterwards for some years China closed its door to the outside world, since the day it reopened the door, China has been playing its due role in the international economic and financial systems. At the same time, the current international economic and financial systems have opened up broad dimensions for China's development. For example, we gained advanced experience from working with the World Bank and other institutions, and our WTO membership has also helped Chinese companies gain deeper knowledge about how they can compete with others under international rules. So China has been a beneficiary of the current international system in terms of both peace and development. Still China is a developing country, and we still have a long way to go before we can achieve modernization. We still need to draw upon the advanced technologies and managerial expertise of other countries. Past progress shows that pursuit of mutual benefit makes all winners. And that is in China's fundamental interest. So there is no such thing as breaking the existing order.

Barber: Sure many will be delighted to hear your description of China as “highly responsible stakeholder”. But do you have the same enlightened view of TPP, the Trans-Pacific Partnership?

Li Keqiang: We have an open attitude towards the TPP. China is actively working with others to advance the RCEP negotiation. We believe the RCEP, economic integration in the Asia-Pacific, the China-ASEAN FTA, the China-ROK FTA and so on can all work in parallel. This applies to the TPP too. But all in all, I believe we need to have both wheels in motion in advancing trade. That is: there can be bilateral and regional FTA arrangements with their respective distinctive features. At the same time, there also needs to be full compliance with the WTO rules to promote economic globalization and trade liberalization.