Today, U.S. Secretary of Commerce Penny Pritzker delivered opening remarks at the CEO roundtable discussion hosted by the Paulson Institute and the China International Trade Promotion Committee in Seattle. During the roundtable, U.S. and Chinese CEOs had the opportunity to share their experiences and challenges surrounding conducting business in China with President Xi Jinping and the Chinese delegation.

Remarks as Prepared for Delivery

Thank you, Hank, for that warm introduction. I also want to express my appreciation to you and the China Council for the Promotion of International Trade for hosting today’s discussion. And thank you, President Xi, for taking precious time out of your busy schedule to listen to our business communities.

As I said last night, China’s recent economic story is a remarkable one: China’s economy is over 50 times larger today than it was 30 years ago. China’s total trade is 150 times larger than it was 30 years ago. Those are extraordinary returns that every CEO in this room would aspire to achieve.

But in many ways, this remarkable success has brought China’s economy to the inflection point that it faces today. The Chinese economy has simply grown too large to continue pursuing the export-driven strategy of the last thirty years.

The country will not be able to boost its long-term growth prospects by using the playbook that worked so effectively in years past. You know this. China’s leaders know this.

Just last week, Mr. President, you noted that “[i]t is necessary to unswervingly attract foreign capital and foreign technologies [and] great effort should be made to promote the deepening of reform by expanding opening up. . . so as to infuse new…economic development [and] increase new vitality” into your economy.

You are absolutely right. However, if I have learned anything during my tenure as Secretary of Commerce, it is that meaningful reform requires the input and engagement of affected stakeholders.

And it requires leaders who are willing to drive change through an entrenched bureaucracy. For that reason, President Obama and his economic cabinet meet regularly with business leaders from companies of all sizes. Their comments and criticisms about a wide range of issues inform our policy making.

American CEOs also frequently share serious concerns about Chinese policies and practices – ranging from theft of technologies and other intellectual property to discriminatory cyber-security regulations, forced technology transfer, application of the anti-monopoly law, and the uneven application of commercial laws generally.

These issues certainly have a negative impact on American firms and create an un-level playing field for foreign companies. They also hurt Chinese businesses and make it harder for us to unlock mutually beneficial commercial opportunities.

In fact, I have met with many Chinese CEOs – in China and in the United States, including several in this room – and I have been struck by how often Chinese CEOs have the same concerns as American executives about doing business in China.

All businesses need transparent laws and regulations, effective enforcement of rules, protection of IP, and the reduction of unnecessary governmental approvals. None of us can tolerate the theft of intellectual property or trade secrets for commercial gain, whether in China or any other country.

Mr. President, perhaps more than any time in recent history, business people and investors around the world are watching China to see what you do next. This is an opportunity.

During this visit and in the coming months, your government can demonstrate to the world that China is committed to transitioning from an emerging, developing economy to a mature, leading global economy and a partner with the United States in helping to maintain and strengthen the rules-based international system.

Thank you, President Xi, for your time and interest in hearing from American business leaders. I look forward to listening to CEOs from both countries and then hearing your comments.