00:00:14
president Doris lard and Mr
00:00:21
hon heads of state and government Deputy
00:00:25
heads of state and your spouses
00:00:32
heads of international
00:00:38
organizations Dr Claus Schwab and Mrs
00:00:44
Schwab ladies and gentlemen dear
00:00:49
friends I'm delighted to come to
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daros the small beautiful town in the
00:01:01
Alps is
00:01:04
indeed an important window through which
00:01:07
we can take the P of the global
00:01:11
economy people from around the world
00:01:13
come
00:01:15
here to exchange ideas and
00:01:19
insights which will broaden their
00:01:23
Vision this makes the WF annual meeting
00:01:27
a cost effective brainstorming event
00:01:30
which I would like to
00:01:34
call Schwab
00:01:39
[Applause]
00:01:45
economics as you know in 10 days
00:01:50
time the Chinese will celebrate the
00:01:52
lunar Chinese New
00:01:56
Year around this time
00:01:59
it is all bu in
00:02:02
China people visit their
00:02:07
relatives and
00:02:09
friends in this way they will strengthen
00:02:12
their bond and friendship so this time
00:02:15
my wife and I and the other members of
00:02:17
the delegation come to daros to pay
00:02:22
our
00:02:24
respect to say New Year greetings to
00:02:27
Switzerland and the whole world
00:02:33
it was the best of times it was the
00:02:36
worst of
00:02:39
times these are the words used by
00:02:41
Charles
00:02:42
Dickens to describe the world after the
00:02:45
Industrial
00:02:50
Revolution today we also live in the
00:02:53
world of contradictions
00:03:00
on the one hand with growing material
00:03:03
wealth and advances in science and
00:03:08
technology human civilization has
00:03:10
developed as never
00:03:15
before on the other hand however
00:03:18
frequent Regional
00:03:20
conflicts Global challenges like
00:03:23
terrorism and
00:03:27
refugees as well as poverty
00:03:31
unemployment and the widening income
00:03:34
back Gap have all added to the
00:03:37
uncertainties of the
00:03:43
world many people are
00:03:48
wondering what has gone wrong with our
00:03:53
world to answer this
00:03:57
question one must first track the source
00:04:01
of the
00:04:05
problem some people blame economic
00:04:09
globalization for the chaos in our
00:04:16
world economic
00:04:19
globalization was once viewed as the
00:04:22
treasure cave found by Alibaba in the
00:04:24
Arabian Knights but
00:04:27
now it has become the pendor box in the
00:04:31
eyes of
00:04:33
many the International Community finds
00:04:37
itself in a heated debate on economic
00:04:40
globalization so today I wish to address
00:04:43
the global economy in the context of
00:04:47
economic
00:04:51
globalization the point I want to make
00:04:54
is that many of the problems troubling
00:04:57
the world are not caused by economic
00:05:03
globalization for
00:05:06
instance the refugee waves from the
00:05:10
Middle East and North Africa in recent
00:05:12
years have become a global
00:05:16
concern several million people have been
00:05:20
displaced and some small children lost
00:05:24
their lives while crossing the rough
00:05:26
sea this is indeed heartbreaking to
00:05:33
us it is war
00:05:36
conflict and Regional turbulence that
00:05:39
have created this
00:05:42
problem and the solution to this problem
00:05:45
lies in making peace promoting
00:05:49
reconciliation and restoring
00:05:55
stability the international financial
00:05:58
crisis is another example it is not an
00:06:02
inevitable outcome of economic
00:06:04
globalization rather it is the
00:06:07
consequence of excessive Chase of profit
00:06:10
by Financial capital and Grave failure
00:06:13
of financial
00:06:19
regulation there's no point in blaming
00:06:21
economic globalization for the world's
00:06:24
problems as that is simply not the case
00:06:27
and it will not help the
00:06:33
problems from the historical perspective
00:06:36
economic globalization results from
00:06:39
growing social
00:06:40
productivity and is the natural outcome
00:06:44
of scientific and technological advances
00:06:47
it is not something created by any
00:06:50
individuals or any
00:06:54
countries economic globalization has
00:06:57
powered Global growth and
00:07:00
facilitated the movement of goods and
00:07:04
capital advances in science technology
00:07:07
and
00:07:08
civilization and interactions among
00:07:15
peoples but we should also
00:07:18
recognize that economic
00:07:22
globalization is a double-edged
00:07:27
sword when the global economy is under
00:07:29
downward
00:07:32
pressure it is hard for us to make the
00:07:35
cake of global economy bigger as a
00:07:37
matter of fact it may even shrink and
00:07:40
this will strain the relations between
00:07:43
growth and
00:07:45
distribution between capital and labor
00:07:48
and between efficiency and
00:07:51
Equity both developed and developing
00:07:54
countries have failed the punch
00:08:00
the voices against
00:08:03
globalization have laid bare the
00:08:05
pitfalls in the process of economic
00:08:09
globalization and we need to take that
00:08:18
seriously the Chinese tend to say honey
00:08:21
melons hand from bitter Vines sweet
00:08:25
dates grow on thistles and thorns
00:08:29
in the philosophical sense nothing is
00:08:32
perfect in the
00:08:36
world one would fail to see the full
00:08:39
picture if he claims something is
00:08:41
perfect simply because of its merits or
00:08:45
if he views something as useless just
00:08:47
because of its
00:08:54
defects it is true that economic
00:08:57
globalization has created new problems
00:09:02
but this is no justification to write
00:09:04
off economic globalization allog
00:09:08
together rather we should adapt to and
00:09:11
guide economic
00:09:14
globalization cushion its negative
00:09:18
impact and deliver its benefits to all
00:09:23
countries and All Nations
00:09:33
there was a time when China also had
00:09:36
doubts about economic
00:09:39
globalization and was not sure whether
00:09:42
China should join the World Trade
00:09:46
Organization but we came to the
00:09:49
conclusion that integration into the
00:09:53
global economy represents the historical
00:09:56
Trend to grow its economy
00:09:59
must have the courage to swim in the
00:10:02
vast ocean of the global
00:10:06
market if one is always afraid of
00:10:08
bracing the storm and exp exploring the
00:10:11
new
00:10:13
world he will get drowned in the ocean
00:10:16
sooner or
00:10:21
later so what China did is to take a
00:10:24
brave step forward to embrace the global
00:10:27
market
00:10:30
we have had our fair share of choking in
00:10:32
the water and we have encountered
00:10:36
whirlpools and choppy
00:10:41
waves but we have learned how to swim in
00:10:44
this
00:10:46
process it has proved to be the right
00:10:49
strategic
00:10:55
Choice whether you like it or not the
00:10:58
global economy is the big ocean that you
00:11:00
cannot Escape
00:11:04
From Any attempt to cut off flows of
00:11:08
capital
00:11:10
Technologies products Industries and
00:11:13
people between
00:11:15
economies and channel the waters in the
00:11:18
ocean back into isolated lakes and
00:11:25
Creeks this is simply not possible
00:11:29
indeed it runs counter to the historical
00:11:34
Trend the history of mankind tells us
00:11:38
that problems are not to be
00:11:41
feared what should concern us is
00:11:44
refusing to face up to the problems and
00:11:46
not knowing what to do about
00:11:51
them in the face of both opportunities
00:11:54
and challenges of economic globalization
00:11:57
the right thing to do is to seize every
00:12:01
opportunity jointly meet
00:12:04
challenges and chart and chart the right
00:12:07
ca for economic
00:12:13
globalization at the APAC economic
00:12:16
leaders meeting in late
00:12:19
2016 I spoke about the need to make the
00:12:23
process of economic globalization more
00:12:27
invigorated more inclusive and more
00:12:34
sustainable we should act
00:12:37
proactively and manage e economic
00:12:39
globalization as
00:12:41
appropriate so as to release its
00:12:44
positive
00:12:46
impact and rebalance the process of
00:12:50
economic
00:12:56
globalization we should follow the
00:12:58
general trend proceed from our
00:13:00
respective National
00:13:02
conditions and embark on the right
00:13:04
pathway of integrating into economic
00:13:07
globalization at the right pace we
00:13:10
should strike a balance between
00:13:12
efficiency and Equity to ensure that
00:13:16
different countries different social
00:13:19
stru and different groups of people all
00:13:22
share in the benefits of economic
00:13:25
globalization
00:13:29
this is a responsibility that leaders of
00:13:31
our times must take
00:13:36
on and the
00:13:38
people around the world expect nothing
00:13:41
less from
00:13:46
us ladies and gentlemen dear
00:13:51
friends at present the most pressing
00:13:54
task before us is to steer the global
00:13:56
economy out of difficulty the global
00:13:59
economy has remained sluggish for quite
00:14:02
some time now the gap between the poor
00:14:05
and the rich and between the South and
00:14:07
the north is widening the root
00:14:10
cause is that three critical issues in
00:14:15
the economic sphere have not been
00:14:18
effectively
00:14:21
addressed first lack of robust driving
00:14:25
force makes it difficult to sustain
00:14:29
steady Global
00:14:33
growth the global growth is now at
00:14:37
slowest Pace in seven
00:14:39
years and growth of global
00:14:43
trade is even slower than
00:14:46
that short-term policy stimulus has
00:14:50
proved
00:14:52
ineffective and fundamental structural
00:14:54
reform is just
00:14:57
unfolding the global econ economy is now
00:15:00
in a
00:15:01
period of moving toward New Growth
00:15:05
drivers with the role of traditional
00:15:07
engines for
00:15:09
growth further
00:15:15
weakening despite the burgeoning new
00:15:18
technologies such as artificial
00:15:20
intelligence and 3D
00:15:23
printing new sources of growth are yet
00:15:26
to emerge
00:15:30
and A New Path for the global economy
00:15:33
remains
00:15:39
elusive second inadequate global
00:15:42
economic
00:15:43
governance makes it difficult to adapt
00:15:46
to new developments in the global
00:15:51
economy Madame Christian lard recently
00:15:54
told me that emerging markets and
00:15:58
developing countries
00:16:00
already contribute to 80% of global
00:16:09
growth in the past few decades the
00:16:12
global economic landscape has changed
00:16:15
profoundly but the global governance
00:16:17
system has not embraced those new
00:16:20
changes and is therefore inadequate in
00:16:23
terms of representation and
00:16:27
inclusiveness the global industrial
00:16:29
landscape is also changing and new
00:16:33
industrial chains value chains and
00:16:36
Supply chains are taking
00:16:39
shape but trade and investment rules
00:16:43
have not kept pace with these
00:16:47
developments resulting in acute problems
00:16:50
such as closed mechanisms and
00:16:53
fragmentation of rules
00:17:00
the Global Financial Market needs to be
00:17:02
more resilient against
00:17:05
risks but the Global Financial
00:17:08
governance mechanism fails to meet the
00:17:10
new
00:17:11
requirement and is unable to effectively
00:17:15
resolve problems such as frequent
00:17:17
volatility in International Financial
00:17:19
market and the buildup of asset
00:17:27
bubbles third uneven Global
00:17:30
development makes it difficult to meet
00:17:33
people's expectations for Better
00:17:40
Lives Dr Schwab observes in his book The
00:17:44
Fourth Industrial Revolution that this
00:17:48
round of Industrial Revolution will have
00:17:51
extensive and far-reaching impacts such
00:17:54
as growing
00:17:57
inequality particularly
00:18:00
a possible widening gap between return
00:18:03
on Capital and return on
00:18:09
labor the richest 1% of the world's
00:18:13
population own more
00:18:16
wealth than the remaining 99%
00:18:21
combined inequality in income
00:18:25
distribution and uneven development
00:18:27
space are worried
00:18:33
over 700 million people in the
00:18:36
world are still living in extreme
00:18:41
poverty for many
00:18:45
families to
00:18:47
have warm
00:18:50
houses enough
00:18:53
food and secure
00:18:56
jobs is still a distant
00:19:02
dream this is the biggest challenge
00:19:04
facing the world today it is also what
00:19:08
is behind the social turmoil in some
00:19:13
countries all this shows
00:19:15
that there are indeed problems with
00:19:19
global growth governance and development
00:19:24
models and these problems must be
00:19:27
addressed
00:19:30
the founder of the Red Cross Henry dunan
00:19:35
said our Real Enemy is not the
00:19:37
neighboring country it is hunger poverty
00:19:42
ignorance
00:19:44
Superstition and
00:19:49
Prejudice we need to have the vision to
00:19:52
desect these problems more importantly
00:19:55
we need to have the courage to take
00:19:57
actions to add them
00:20:01
first we should develop a dynamic
00:20:04
Innovation driven growth
00:20:11
model the fundamental problem plaguing
00:20:14
the global economy is the lack of
00:20:16
driving force for growth Innovation is
00:20:19
the primary force guiding
00:20:25
development unlike the previous
00:20:27
industrial revolutions the fourth
00:20:29
Industrial
00:20:31
Revolution is
00:20:33
unfolding at an exponential rather than
00:20:36
linear
00:20:40
Pace we need to relentlessly pursue
00:20:44
Innovation only with the courage to
00:20:47
innovate and reform can we remove
00:20:51
bottlenecks blocking Global growth and
00:20:56
development with this in mind G20
00:21:00
leaders reached an important consensus
00:21:03
at the hjo summit that is to take
00:21:06
Innovation as a key
00:21:08
driver and Foster new driving force of
00:21:11
growth for both individual countries and
00:21:14
the global
00:21:16
economy we should foster a new
00:21:18
development philosophy and rise above
00:21:21
the debate about whether there should be
00:21:23
more fiscal stimulus or more monetary
00:21:26
easing we should follow a multipronged
00:21:29
approach to address both the symptoms
00:21:32
and the underlying
00:21:33
problems we should adopt new policy
00:21:38
measures and advanced structural
00:21:42
reform to create more space for growth
00:21:45
and sustain its
00:21:48
momentum we should develop a new growth
00:21:51
model and seize the opportunities
00:21:54
presented by the new round of Industrial
00:21:56
Revolution and digital
00:22:01
economy we should meet the challenges of
00:22:04
climate change and aging
00:22:11
population we should
00:22:13
also address the negative impact of it
00:22:17
application and automation on
00:22:24
jobs when cultivating new Industries and
00:22:27
new forms and models of business we
00:22:31
should always find ways to create new
00:22:33
jobs in order to restore confidence and
00:22:37
hope to our
00:22:43
peoples
00:22:46
second we should pursue a well
00:22:48
coordinated and interconnected approach
00:22:51
to develop a model of open and women
00:22:55
Corporation today mankind has become a
00:22:58
close-knit community of shared
00:23:01
future countries have become mutually
00:23:04
dependent with extensive converging
00:23:08
interests all countries enjoy the right
00:23:11
to
00:23:12
development yet at the same time they
00:23:14
should view their own interests in a
00:23:16
broader
00:23:17
context and refrain from pursuing their
00:23:21
own interests at the expense of
00:23:27
others we
00:23:28
should commit ourselves to growing an
00:23:31
open global
00:23:35
economy to share the opportunities and
00:23:39
interests through opening up and Achieve
00:23:41
win-win
00:23:43
outcomes we should not develop a habit
00:23:46
of retreating to the harbor whenever
00:23:49
encountering a storm for this will never
00:23:52
get us to the other shore of the
00:23:57
ocean we must redouble efforts to
00:24:00
develop Global
00:24:02
connectivity to enable all countries to
00:24:04
achieve interconnected growth and share
00:24:09
Prosperity we must remain committed to
00:24:12
developing free trade and
00:24:15
investment
00:24:17
promote trade and
00:24:20
investment liberalization and
00:24:22
facilitation through opening
00:24:25
up and say no to protectionist
00:24:31
pursuing
00:24:33
protectionism is just like locking
00:24:36
oneself in the dark
00:24:39
room while Wind and Rain may be kept
00:24:43
outside so are light and
00:24:49
air no one will emerge as a winner in
00:24:52
the trade War
00:24:56
[Applause]
00:25:05
third we should develop a model of fair
00:25:08
and Equitable governance in keeping with
00:25:11
the trend of the times as the Chinese
00:25:14
saying goes people with Patty shortness
00:25:17
attend to trival matters while people
00:25:19
with great vision attend to governance
00:25:22
of
00:25:23
Institutions there is a growing call
00:25:27
from the internet Community for
00:25:29
reforming the global economic governance
00:25:32
system which is a pressing task for us
00:25:35
only when it adapts to new Dynamics in
00:25:38
the international economic architecture
00:25:41
can the global governance system sustain
00:25:44
Global
00:25:45
growth countries big or small strong or
00:25:48
weak rich or poor are all equal members
00:25:52
of the International
00:25:53
Community as such they are entitled to
00:25:56
participate in decision making
00:25:58
enjoy rights and fulfill obligations on
00:26:01
an equal basis emerging markets and
00:26:04
developing countries deserve greater
00:26:06
representation and
00:26:13
voice the 2010 IMF quarter reform has
00:26:18
entered into
00:26:19
force and its momentum should be
00:26:24
sustained we should adhere to
00:26:27
multilateralism to uphold the authority
00:26:29
and efficacy of multilateral
00:26:32
Institutions we should honor promises
00:26:35
and abide by rules one should not select
00:26:38
or bend rules as he sees
00:26:46
fit the Paris agreement is a hard one
00:26:50
achievement which is in keeping with the
00:26:52
underlying trend of global development
00:26:56
all signatories should stick to it
00:26:58
instead of walking away from it as this
00:27:01
is a responsibility we must assume for
00:27:04
future
00:27:06
[Applause]
00:27:11
Generations
00:27:14
it's Fourth we should develop a balanced
00:27:18
Equitable and inclusive development
00:27:21
model as the Chinese saying goes a just
00:27:24
course should be pursued for common good
00:27:27
development is ultimately for the people
00:27:30
to achieve more balanced development and
00:27:33
ensure that people have equal access to
00:27:36
Opportunities and share in the benefits
00:27:39
of development it is crucial to have a
00:27:42
sound development philosophy and model
00:27:45
and make development Equitable effective
00:27:48
and
00:27:53
balanced we should foster a culture that
00:27:55
values diligence frugality and
00:27:59
Enterprise and respects the fruits of
00:28:02
hard work of
00:28:04
all priority should be given to
00:28:07
addressing poverty unemployment the
00:28:10
widening income gap and the concerns of
00:28:14
the disadvantage to promote social
00:28:17
equity and
00:28:20
Justice it is important to protect the
00:28:23
environment while pursuing economic and
00:28:25
social progress so as to achieve
00:28:29
Harmony between men and nature and
00:28:34
Harmony between men and
00:28:39
Society the 2030 agenda for sustainable
00:28:43
development should be implemented to
00:28:45
realize balanced Development Across the
00:28:48
world
00:28:51
[Applause]
00:28:58
a Chinese adage
00:29:00
reads Victory is ensured when people
00:29:03
pull their strength success is secured
00:29:06
when people put their heads
00:29:10
together as long as we keep to the goal
00:29:12
of building a community of shared future
00:29:15
for mankind and work hand in hand to
00:29:18
fulfill our responsibilities and
00:29:20
overcome
00:29:21
difficulties we will be able to create a
00:29:24
better world and deliver better lives
00:29:27
for our peoples
00:29:30
ladies and
00:29:32
gentlemen dear
00:29:36
friends thanks to 38 years of Reform and
00:29:40
opening
00:29:41
up China has become the world's second
00:29:44
largest
00:29:48
economy a right path leads to a bright
00:29:53
future China has come this far because
00:29:57
the the Chinese people have under the
00:30:00
leadership of the Communist Party of
00:30:02
China blazed a development path that
00:30:05
suits China's actual
00:30:11
conditions this is a path based on
00:30:14
China's
00:30:17
realities China has in the past years
00:30:20
succeeded in embarking on a development
00:30:23
path that suits Itself by drawing on
00:30:26
both the wisdom of it civilization and
00:30:28
the practices of other countries in both
00:30:31
East and West in exploring this path
00:30:35
China refuses to stay insensitive to The
00:30:37
Changing Times or to blindly follow in
00:30:40
others
00:30:44
footsteps all roads lead to
00:30:48
Rome no country should view its own
00:30:51
development path as the only viable
00:30:54
one still less should it impose its own
00:30:57
development path on
00:31:02
others this is a path that puts people's
00:31:05
interests
00:31:06
First China follows a people oriented
00:31:10
development philosophy and is committed
00:31:13
to battering the lives of his
00:31:18
people
00:31:19
development is of the People by the
00:31:23
people and for the people
00:31:30
China pursues the goal of common
00:31:33
Prosperity we have taken major steps to
00:31:36
alleviate poverty and lifted over 700
00:31:40
million people out of poverty and good
00:31:43
progress is being made in our efforts to
00:31:46
finish building a society of initial
00:31:48
prosperity in all
00:31:51
respects this is a path of pursuing
00:31:54
reform and
00:31:56
innovation China has tackled
00:31:59
difficulties and challenges on its way
00:32:01
forward through
00:32:03
reform China has demonstrated its
00:32:05
courage to take on difficult issues
00:32:08
navigate trous Rapids and remove
00:32:11
institutional hurdles standing in the
00:32:13
way of
00:32:14
development these efforts have enabled
00:32:16
us to unleash productivity and social
00:32:24
Vitality building on progress of 30
00:32:28
years of Reform we have introduced more
00:32:31
than
00:32:33
1,200 reform measures over the past four
00:32:36
years injecting powerful impetus into
00:32:39
China's
00:32:42
development this is a path of pursuing
00:32:45
common development through opening
00:32:49
up China is committed to a fundamental
00:32:52
policy of opening up and pursues a
00:32:55
wing-wing opening up strategy
00:32:59
China's development is both domestic and
00:33:01
external
00:33:03
oriented while developing itself China
00:33:05
also shares more of its development
00:33:08
outcomes with other countries and
00:33:10
peoples China's outstanding development
00:33:13
achievements and the vastly improved
00:33:15
living standards of its
00:33:17
people are a blessing to both
00:33:22
China and the world
00:33:28
such achievements in development over
00:33:31
the past decades owe themselves to the
00:33:34
hard work and perseverance of the
00:33:36
Chinese people a quality that has
00:33:39
defined the Chinese Nation for several
00:33:42
thousand
00:33:43
years we Chinese know only too well that
00:33:48
there is no such thing as a free lunch
00:33:50
in the
00:33:53
world and no pile will fall from the sky
00:33:58
for a big country with over 1.3 billion
00:34:02
people development can be achieved only
00:34:05
with the dedication and tiess efforts of
00:34:08
his own people we cannot expect others
00:34:11
to deliver development to China and no
00:34:14
one is in a position to do
00:34:17
so when assessing China's
00:34:20
development one should not only see what
00:34:23
benefits the Chinese people have gained
00:34:26
but also how much efforts they have put
00:34:31
in not just what achievements China has
00:34:35
scored but also what contribution it has
00:34:38
made to the
00:34:39
world then one will reach a more
00:34:42
balanced conclusion about China's
00:34:53
development between 1950 and uh 2016
00:35:00
despite its modest level of development
00:35:03
and living
00:35:06
standard China provided more than 400
00:35:10
billion yen of foreign
00:35:13
assistance undertook over 5,000 foreign
00:35:17
assistance
00:35:20
projects including nearly 3,000 complete
00:35:24
projects
00:35:28
and we have held over 11,000 training
00:35:31
workshops in
00:35:33
China for over 260,000
00:35:36
Personnel from other developing
00:35:41
countries since he launched reform and
00:35:44
opening
00:35:45
up China has attracted over 1.7 trillion
00:35:49
US dollar of foreign
00:35:51
investments and made over 1.2 trillion
00:35:55
us doar of direct Unbound
00:35:59
investment making huge contribution to
00:36:02
global economic
00:36:06
growth since the outbreak of the
00:36:08
international financial
00:36:11
crisis China contributed to over
00:36:16
30% of global growth every year on
00:36:23
average all these figures are among the
00:36:26
highest in the world
00:36:31
these figures speak for
00:36:33
themselves China's development is an
00:36:36
opportunity for the
00:36:40
world China has not only benefited from
00:36:44
economic globalization but also
00:36:46
contributed to
00:36:49
it rapid growth in China has been a
00:36:53
sustained and Powerful engine for global
00:36:56
economic stability and
00:36:59
expansion the interconnected development
00:37:01
of China and a large number of other
00:37:04
countries has made the world economy
00:37:06
more
00:37:09
balanced China's remarkable achievement
00:37:11
in poverty reduction has contributed to
00:37:14
more inclusive Global
00:37:18
growth and China's continu continuous
00:37:21
progress in reform and opening up has
00:37:24
lent much momentum to an open world econ
00:37:31
economy we Chinese know only too well
00:37:36
what it takes to achieve
00:37:39
Prosperity so we applaud the
00:37:41
achievements by
00:37:44
others and we wish them a better
00:37:53
future we are not jealous of others
00:37:56
success
00:37:58
and we will not complain about others
00:38:01
who have benefited so much from the
00:38:03
great opportunities presented by China's
00:38:06
development we will open our arms to the
00:38:09
people of other countries and welcome
00:38:11
them aboard the express train of China's
00:38:15
[Applause]
00:38:21
development ladies and gentlemen dear
00:38:25
friends I know you are all closely
00:38:28
following China's Economic Development
00:38:31
and let me give you an update on that
00:38:33
China's economy has entered what we call
00:38:36
a new normal in which major changes are
00:38:39
taking place in terms of growth rate
00:38:42
development model economic structure and
00:38:45
drivers of
00:38:48
growth but the economic fundamentals
00:38:51
sustaining sound development remain
00:38:54
unchanged
00:38:59
despite a sluggish global
00:39:01
economy China's economy is expected to
00:39:05
grow by 6.7% in
00:39:08
2016 still among the highest in the
00:39:14
world China's economy is far bigger in
00:39:18
size than in the
00:39:21
past and it now generates more
00:39:25
output than it did with double digigit
00:39:27
growth in the
00:39:30
past household consumption and the
00:39:33
service sector have become the main
00:39:36
drivers of growth in the first three
00:39:39
quarters of
00:39:40
2016 added value of the tertiary
00:39:43
industry took up
00:39:46
52.8% of the
00:39:49
GDP and domestic consumption contributed
00:39:53
to 71% of economic growth
00:39:59
household income and employment have
00:40:02
steadily
00:40:04
risen while per unit GDP energy
00:40:07
consumption continues to
00:40:09
drop our efforts to pursue green
00:40:11
development are paying
00:40:16
off the Chinese economy faces downward
00:40:20
pressure and many
00:40:21
difficulties including acute mismatch
00:40:25
between excess capacity and an upgrading
00:40:28
demand
00:40:29
structure lack of internal driving force
00:40:32
for
00:40:33
growth accumulation of financial
00:40:38
risks and growing challenges in certain
00:40:43
regions we see these as temporary
00:40:46
hardships that occur on the way
00:40:50
forward and the measures we have taken
00:40:53
to address these problems are producing
00:40:55
good results
00:41:00
we are firm in our resolve to forge
00:41:04
ahead
00:41:05
China is the world's largest developing
00:41:09
country with over 1.3 billion
00:41:13
people and their living standards are
00:41:16
not yet
00:41:18
high but this reality also means China
00:41:21
has enormous potential and space for
00:41:25
development Guided by the princip
00:41:28
and vision of innovative coordinated
00:41:30
green open and shared
00:41:33
development we will adapt to the new
00:41:37
normal stay ahead of the
00:41:41
curve and make coordinated efforts to
00:41:44
maintain steady growth accelerate reform
00:41:48
adjust economic structure improve
00:41:51
people's living standards and fend off
00:41:54
risks with these efforts we aim to
00:41:57
achieve medium high rate of growth and
00:42:00
upgrade the economy to higher end of the
00:42:03
value
00:42:06
chain China will strive to enhance the
00:42:10
performance of economic
00:42:13
growth we will pursue supply side
00:42:15
structural reform as the general goal
00:42:18
shift the growth model and upgrade the
00:42:21
economic
00:42:22
structure we will continue to cut over
00:42:25
capacity
00:42:27
reduce
00:42:28
inventory deleverage
00:42:31
financing reduce cost and strengthen
00:42:34
weak
00:42:36
links we will Foster new drivers of
00:42:39
growth develop an advanced manufacturing
00:42:43
sector and upgrade the real
00:42:47
economy we will implement the internet
00:42:50
plus action plan to boost effective
00:42:53
demand and better meet the
00:42:56
individualized and diverse needs of
00:42:59
consumers and we will also do more to
00:43:01
protect the
00:43:05
ecosystem China will boost Market
00:43:08
Vitality to add new impetus to
00:43:12
growth we will intensify reform efforts
00:43:15
in priority areas and key links and
00:43:18
enable the market to play a decisive
00:43:20
role in resources allocation Innovation
00:43:24
will continue to feature prominently on
00:43:26
our growth agenda in pursuing the
00:43:29
strategy of innovation driven
00:43:30
development we will bolster the
00:43:32
Strategic emerging Industries apply new
00:43:35
technologies and Foster new business
00:43:38
models to upgrade traditional
00:43:42
Industries and we will boost new drivers
00:43:45
of growth and Revitalize traditional
00:43:48
ones China will Foster an enabling an
00:43:51
orderly environment for
00:43:53
investment we will expand market access
00:43:56
for foreign
00:43:58
investors build high standard pilot free
00:44:01
trade
00:44:03
zones strengthen protection of property
00:44:06
rights and level the playing field to
00:44:09
make China's Market more transparent and
00:44:13
better
00:44:17
regulated in the coming five
00:44:21
years China is expected to import 8
00:44:25
trillion US dollar of
00:44:28
Goods attract 600 billion US of foreign
00:44:34
investment and
00:44:38
make 750 billion US doar of outbound
00:44:43
investment Chinese tourists will make
00:44:46
700 million overseas
00:44:49
visits all these will create a bigger
00:44:53
Market more
00:44:55
Capital more product
00:44:58
and more business opportunities for
00:45:00
other
00:45:04
countries China's
00:45:07
development will continue to offer
00:45:09
opportunities to business communities in
00:45:12
other countries China will keep its door
00:45:15
wide open and not close
00:45:19
it an Open Door allows both other
00:45:22
countries to access the Chinese market
00:45:24
and China itself to integrate with
00:45:29
world and we hope that other countries
00:45:31
will also keep their door open to
00:45:33
Chinese investors and keep the playing
00:45:36
field level for
00:45:39
us China will vigorously Foster an
00:45:42
external environment of opening up for
00:45:45
common development we will advance the
00:45:47
building of the free trade area of the
00:45:49
Asia Pacific and negotiations of the
00:45:51
regional comprehensive economic
00:45:53
partnership to form a Global Network of
00:45:56
free trade Arrangements China stands for
00:45:59
open transparent and wing-wing Regional
00:46:01
free trade
00:46:02
arrangements and opposes forming groups
00:46:06
that are exclusive or fragmented in
00:46:10
nature China has no intention to boost
00:46:13
his trade competitiveness by devaluing
00:46:16
the R&B steas will it launch a currency
00:46:21
War over three years ago I put forth the
00:46:24
belt and Road initiative
00:46:27
since then over 100 countries and
00:46:30
international organizations have given
00:46:33
warm responses and support to the
00:46:35
initiative more than 40 countries and
00:46:38
international organizations have signed
00:46:40
cooperation agreements with China and
00:46:42
our Circle of Friends Along the ban road
00:46:46
is growing bigger Chinese companies have
00:46:49
made over 50 billion US doar of
00:46:52
investment and launched a number of
00:46:54
major projects in these countries Ong
00:46:57
The Roots spurring the economic
00:46:59
development of these countries and
00:47:01
creating many local
00:47:03
jobs the B and Road initiative
00:47:06
originated in China but it has delivered
00:47:09
benefits well beyond its
00:47:12
borders in May this
00:47:15
year China will host in
00:47:18
Beijing the belt and Road forum for
00:47:22
international
00:47:24
cooperation which aims to discuss ways
00:47:27
boost cooperation build cooperation
00:47:29
platforms and share cooperation
00:47:32
outcomes The Forum will also explores
00:47:35
ways to address problems facing Global
00:47:38
Regional Global and Regional economy
00:47:41
create fresh energy for pursuing
00:47:43
interconnected development and make the
00:47:46
belt and Road initiative deliver greater
00:47:48
benefits to people of countries involved
00:47:51
ladies and gentlemen dear
00:47:53
friends world history shows
00:47:57
that the road of human civilization has
00:48:00
never been a smooth
00:48:01
one and that mankind has made progress
00:48:05
by surmounting
00:48:07
difficulties no difficulty however
00:48:10
daunting will stop Mankind from
00:48:13
advancing when encountering difficulties
00:48:16
we should not complain about ourselves
00:48:19
blame
00:48:21
others lose
00:48:23
confidence or run away from
00:48:25
responsibilities
00:48:29
instead we should join hands and rise to
00:48:32
the
00:48:33
challenge history is created by the
00:48:38
brave let us boost
00:48:40
confidence take
00:48:43
actions and work
00:48:45
together for a bright future thank you
00:49:09
Mr
00:49:13
President it
00:49:15
was a very very important
00:49:20
speech at a historical
00:49:24
moment the history of mankind
00:49:27
presently is
00:49:30
characterized by
00:49:33
mastering enormous
00:49:36
pressures
00:49:37
coming from the transformational
00:49:42
forces
00:49:43
technological
00:49:46
economic transformational forces which
00:49:50
reshape the world it would be
00:49:55
presumptuous Mr President president to
00:49:58
summarize your speech but I would like
00:50:03
just
00:50:05
to remind us of three very
00:50:10
important commitments you made
00:50:14
here which fulfill us with confidence
00:50:19
for the
00:50:20
future
00:50:22
first your commitment and your
00:50:25
determination to
00:50:27
continue the economic development of
00:50:33
China to
00:50:35
continue to have
00:50:37
China as a important
00:50:41
force in the global economy as a driving
00:50:46
force
00:50:48
by preparing very well for the new
00:50:53
normal through the necessary structural
00:50:58
reforms
00:51:00
but it was also so important to hear
00:51:04
from you Mr President your commitment to
00:51:08
globalization we are living in a global
00:51:10
interdependent
00:51:12
world we cannot
00:51:16
recreate artificial
00:51:18
borders globalization is a win win
00:51:23
situation we have a common Destiny as a
00:51:26
mankind at as
00:51:29
humankind
00:51:31
so your
00:51:33
commitment
00:51:34
also to a fair Innovative open and
00:51:40
inclusive world is
00:51:43
crucial and I would say I know Mr
00:51:47
President there is the Chinese stream
00:51:51
let's have a global dream a dream of a
00:51:57
world which remains
00:52:00
Innovative which remains
00:52:02
open which is fair and which is
00:52:07
inclusive Mr
00:52:09
President we are also living in a new
00:52:13
world you mentioned the fourth
00:52:15
Industrial
00:52:17
Revolution we cannot go back to Old
00:52:21
policies we
00:52:23
cannot
00:52:24
just take risk recipes which may have
00:52:28
worked in the old world but which will
00:52:32
not be appropriate anymore in order to
00:52:35
face the new challenges for example the
00:52:40
impact technology has unemployment and
00:52:44
here we need new ideas and new words
00:52:48
were
00:52:50
refreshing because you are committed to
00:52:54
approach Global governance Global
00:52:57
cooperation in a new
00:52:59
way we thank you again for joining us
00:53:03
here in
00:53:04
Davos president she I can tell you we
00:53:10
here as a community of global
00:53:13
leaders we are committed to the same
00:53:16
objectives to make this world a better
00:53:20
world to give everybody a better more
00:53:24
fulfilled healthier
00:53:27
and I would say a life where he feels
00:53:31
really included into the society that's
00:53:36
what we are struggled for that's what we
00:53:38
are here for it all is on us to make it
00:53:42
happen and here we join forces with
00:53:46
you Mr President I would like to wish
00:53:52
you the first lady Professor Pang you're
00:53:56
the
00:53:57
delegation and the Chinese people a very
00:54:02
happy healthy
00:54:04
successful New Year and I hope that you
00:54:08
leave Davos with a good
00:54:11
memory because what we need in the world
00:54:15
is sunshine and your speech has brought
00:54:18
us some sunshine into our discussions
00:54:22
thank you
00:54:35
[Music]
