These accomplishments were made possible not because there’s anything unique about an American.  It’s hard to define what an American is.  Shortly, 50 percent of the American population -- less than 50 percent will be of European stock.  So we are the most -- we are an incredibly heterogeneous nation.  That's part of our strength.  That's part of the boundless capacity of the American people.  But it’s also because of the enduring strength of our political and economic system and the way we educate our children, a system that welcomes immigrants from across the globe who enrich our national fabric and revitalize our diverse multi-ethnic society.  And I would point out, we are still the destination where most people in the world seek to come.  People usually don't seek to come to a nation in decline.

A system that trains students not merely to learn and accept established orthodoxy, but to challenge orthodoxy, challenge their professors, challenge the ideas put forward to them, encourage individual thought and innovation; a system that not only tolerates free expression and vigorous debate, including between citizens and their government, but celebrates and promotes those exchanges; a system in which the rule of law protects private property, provides a predictable investment climate, and ensures accountability for the poor and wealthy alike; and a system with universities that remain -- notwithstanding, and this is a great university -- the ultimate destination for scholars from around the world.  More than 130 [sic] students from China attended our universities last year.  We’re hoping that number will be even larger.

China has followed a very different economic and political path to prosperity, enhancing some aspects of a free-market system, while resisting political openness and maintaining the state’s deep involvement in economic affairs.  That's a decision for you to make.

Maybe the biggest difference in our respective approaches are our approaches to what we refer to as human rights.  I recognize that many of you in this auditorium see our advocacy of human rights as at best an intrusion, and at worst an assault on your sovereignty.  I want to tell you directly that this is not our intention.  Yes, for Americans there is a significant moral component to our advocacy.  And we observed where we have failed, as well.  But it is who our people are.

But President Obama and I see protecting human rights and freedoms, we see it in a larger context, as well.  Protecting freedoms such as those enshrined in China’s international commitments and in China’s own constitution -- we see them as a key aspect of China’s successful emergence and the key continued growth and prosperity.  I know that some in China believe that greater freedom could threaten economic progress by undermining social stability.  I do not pretend to have the answer, but I believe history has shown the opposite to be true, that in the long run, greater openness is a source of stability and a sign of strength, that prosperity peaks when governments foster both free enterprise and free exchange of ideas, that liberty unlocks a people’s full potential.  And in its absence, unrest festers.

Openness, free exchange of ideas, free enterprise and liberty are among the reasons why the United States, in my view, is at this moment the wealthiest nation in the history of the world.  It’s why our workers are among the most productive, why our inventors and entrepreneurs hold more patents than any other country in the world, why we are reinvesting in the fundamental sources of our strength -- education, infrastructure, innovation, and why President Obama and I are so confident that America will weather the current economic storm and emerge even stronger, just as we always have in past economic crises, and why there’s no reason why China cannot tap into the same source of strength.

Going forward together is going to have a lot of growing pains.  As I said at the outset, in just over 30 years since I first came to China, your progress has been nothing short of incredible.  I can see that here in Chengdu, the city that is leading the effort to become a major player in the innovation economy, you can feel it.  You can see it in the eyes of some of you students.

Looking at this audience, there are some among you who will be the new pioneers in China’s economic development, leaving your mark on history.  Just like Steve Jobs, the founder of Apple and others have had in the United States, you have the capacity and the potential and I’m sure some of you will do it.

I’m also proud that more than 160 Fortune 500 companies are operating in Chengdu High-tech Zone, including pioneer American businesses like Intel, Dell and Oracle.  The U.S.-China relationship has also improved dramatically in the past 30 years.  In order to cement this robust partnership, we have to go beyond close ties between Washington and Beijing, which we’re working on every day, go beyond it to include all levels of government, go beyond it to include classrooms and laboratories, athletic fields and boardrooms.

That's why we launched our 100,000 Strong Initiative to boost the number of American students studying in China each year and have maintained a robust Peace Corps presence.  How many Peace Corps volunteers are here today?  Raise your hands.  We love you guys.  Welcome.  Welcome.  (Applause.)

Last year, over 800,000 Chinese and 2 million Americans traveled between our countries to live, work, study and explore new places.  On a personal note, I've seen the value of these exchanges through the experiences of my niece, a young woman who learned Mandarin at Harvard and spent a year in Beijing refining her language skills and ultimately worked at our Treasury Department on U.S.-China relations.  There are tens of thousands of you like her, who are going to be the key to cement this relationship and deal with misconception and form the relevant societies about the motivations and operations of each of our countries

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