 Premier Lyke Chang, distinguished heads of state and government, Excellencies, dear friends and members of the World Economic Forum, a very cordial welcome to all of you, and particularly to you, your Excellency Lyke Chang, Premier of the People's Republic of China. For me to stand here is a very special moment. It has now been 35 years since the first time I came to China. And during all these years, the World Economic Forum has developed a very special relationship, partnership and friendship with this great country and its people. Thank you. The world has changed so much over the past 35 years, and China's leadership has consistently shown the wisdom, the determination and the innovation required to master the challenges which it has faced. China has a significant influence in changing, in shaping the world of today, and it will continue to have a tremendous role to play in strengthening our collective global future. To capitalize on the great opportunities the future provides and to respond to the economic and social challenges we face today, courageous and comprehensive reforms are needed. Those necessary deep transformation processes require collaborative efforts of governments, business and other actors of society to be truly successful. This is the reason we are all here gathered in this hall in Tianjin at the 8th annual meeting of the new champions. 8 is a particularly lucky number in China, and we are fortunate to welcome the largest number of participants ever, over 2,000 inclusive media representatives. And we are representing here over 90 countries and all stakeholders of society. Mr. Premier, in your opening speech last year, you said, and I quote, China will continue to encourage foreign companies to make investments and to do business in China. Looking at all of you, gathered here in this room, I can only say, Mr. Premier, you have been hurt. With over 1,000 business leaders from outside China, this highlights the confidence in your country and its continued attractiveness for foreign business. We have chosen, as a theme for this 8th annual meeting of the new champions, creating values through innovation. The innovation, capacity, and entrepreneurial spirit assembled in this room here is rather unique. Mr. Premier, last year, in your opening speech, you also quoted an ancient Chinese saying, a gentleman is always ready to help others to attain their goals. This means that we are here as members of a multi-stakeholder community committed truly to improve the state of China and to improve the state of the world. Ladies and gentlemen, please join me in welcoming Li Keqiang, Premier of the People's Republic of China. Dear Professor Klaus Schwab, Your Excellencies, Heads of State and Government, distinguished guests, ladies and gentlemen, dear friends, it gives me great pleasure to meet you here in Tianjin, China, at the 8th annual meeting of the new champions, or the Summer Davos Forum. Here on behalf of the Chinese Government, I wish to extend warm congratulations on the opening of the forum and accord you welcome to all of you who have come from afar. The theme for this year's forum, namely creating value through innovation, is a most relevant one. Innovation is an eternal topic of the human society and an inexhaustible engine driving economic and social development. Innovation is vital to the steady recovery of the world economy. Innovation is also essential to upgrading the Chinese economy and improving its performance. And it is thanks to reform and innovation that the Chinese economy has in recent years maintained steady and sound growth and continue to move towards a sound direction. Since the beginning of this year, the global economic environment has remained an intricate one. The road to recovery in developed countries has remained bumpy. Growth in emerging market economies has slowed down and the Chinese economy faces greater downward pressure. We have continued to follow the general principle of making progress while maintaining stability. We have stayed the course and pursued a proactive approach. Instead of adopting strong economic stimulus or easing monetary policy, we have vigorously promoted reform and economic adjustment and improved people's livelihood. As a result, we have maintained steady economic performance. In the first half of the year, the Chinese economy registered a 7.4% growth and the CPI rise was kept at 2.3%. Despite economic slowdown between January and August, unemployment was kept at around 5% in 31 big and medium-sized cities. More than 9.7 million urban jobs were created, which is over 100,000 more compared with the same period last year. Indeed, we have seen growing downward pressure in the Chinese economy. However, more jobs were created thanks to new steps of reform taken. Since the beginning of this government, we have advanced the reform of the administrative review and approval system. Government departments have removed or delegated to lower-level administrative approval on over 600 items and this year the business registration reform has been carried out nationwide. This has lowered the threshold for starting businesses and removed restrictions on them, thus giving a great boost to business development in the whole country. Between January and August, the amount of newly registered businesses was more than 8 million and from March to August, with the business registration reform, the number grew by 61% over the previous year, all pointing to a massive upsurge, which has generated over 1 million jobs. In addition to reforms on business registration systems, we have also introduced reforms to investment financing, taxation and logistics systems. Further opened the gate for the development of the services sector and other emerging industries, all these measures have been vital in fostering and increasing job opportunities. The positive changes in China's economy are not only reflected in the increase of jobs and residence incomes, but also in the structural upgrading. We have streamlined administration, delegated powers to the lower levels, and adopted measures such as targeted tax reduction and targeted reduction of required bank reserve ratio. All these measures have spurred the growth of the services sector, agriculture, rural areas and the welfare of farmers, as well as small and micro-businesses, private businesses and emerging businesses. In the first half of this year, new businesses and new business models such as e-commerce and logistics and express delivery all developed fast. The number of newly registered service businesses is surged by more than 70%. The tertiary industry continued to outperform the secondary industry in terms of growth rate and share of GDP and continued to be a leading sector of the economy. The share of private investment and fixed asset investment increased by 1.4 percentage points year on year, high-tech industries and equipment manufacturing grew faster than the industrial average. Deepening structural readjustment has improved the quality of economic growth. On the basis of carrying out reform and innovation, we have reduced overcapacity and fostered new growth areas. We have promoted business merger and reorganization and redoubled efforts to conserve energy and economy mission. By doing so, we have promoted business upgrading and transformation. In the first half of the year, the growth of investment and production of industries with high energy consumption and emissions noticeably slowed down. The per unit GDP energy consumption dropped by 4.2% year on year and carbon intensity was cut by about 5% for the first half of the year, the largest drop in many years. We have managed to ensure steady growth and improve the quality of the Chinese economy by taking targeted range-based micro-control measures. With focus on key areas and weak links of China's economic and social development, we have used more reform and innovation measures to incentivize market entities, strengthen weak links, boost the real economy and ensure that our efforts are well targeted. This approach, which was also structural adjustment in nature, involved both reform and readjustments. We have strived to make sure that the market play a decisive role in resources allocation. We have also endeavored to improve the role of the government and promote social equity. We have balanced domestic and international demands, coordinated regional development, narrowed the gap between rural and urban areas and stabilized agricultural supply and demand. We have also strengthened the construction of railways in central and western China, the renovation of round-down areas, pollution control and prevention, other livelihood development projects. All these means efforts to tackle the bottlenecks that have long constrained China's development. These have greatly supported our efforts to advance towards a new type of organization and increased the supply of public goods. Facing the new normal state of the global and Chinese economy, we have remained level-headed and taken steps to tackle deep-seated challenges. We focused more on structural readjustment and other long-term problems and refrained from being distracted by these slight short-term fluctuations of individual indicators. For example, in July and August, electricity consumption freight volumes and other indicators fluctuated somewhat. That was inevitable and within our expectation, it was because the domestic and international economic situation was still complex and volatile, and the base figure for the later half of last year was high. So when observing the Chinese economy, one should not just focus on its short-term performance or the performance of a particular sector, one should look at the overall trend, the bigger picture and the total score. Judging by the principle of range-based micro-control, we believe the actual economic growth rate is within the proper range, even if it is slightly higher or lower than the 7.5% target. In particular, we should realize that an important goal of maintaining stable growth is to ensure employment. As the economic aggregate continues to expand, particularly with the rapid growth of the services sector, growth will mean more jobs and there will be greater tolerance to fluctuations. We should also be clear that the Chinese economy is highly resilient and has much potential and ample space to grow, and the measures we have taken are good both for now and for longer-term interests and will therefore enable us to prevent major fluctuations and make heart landing even less possible. We do not mean that we are not going to face any difficulties and challenges. Instead, these challenges and difficulties will be daunting. In the four months ahead, we will coordinate the efforts to stabilize growth, promote reform, re-adjust the structure, improve people's livelihood and prevent risks. We will continue to improve and innovate in the thinking and approaches of micro-control, strengthen targeted micro-control on the basis of range-based micro-control, promote structural reform and re-adjustment, carry out reforms in key areas of systemic importance with every determination to forge ahead and bear long-term interests in mind when addressing current problems. First, we will continue to press ahead with revolutionizing the government itself and further intensify efforts to streamline administration and delegate powers. We will deepen fiscal taxation reform, promote the reform of the budgetary and management system so that public funds could be used in an effective and equitable manner. We will also standardize the transfer payment system and continue to expand the pilot programs for business tax-to-VAT reform, which will support the development of services sector in particular, the R&D industries. We will deepen financial reform, promote pilot programs for non-state-owned banks, sort out and standardize limited requirements on access to financial sector and develop a multi-tiered capital market. We will deepen reform state-owned enterprises. We will deepen price reform and improve the pricing mechanisms for energy product, medicine and medical services. We will deepen reform of the investment system and implement government purchase of service contracting public-private cooperation models and a franchise operation system. Second, we will continue to focus on tackling the deep-seated structural problem for the increased effective supply of public goods to generate effective demand, strengthen weaknesses in investment, increase household consumption and nurture new growth areas. Third, we will continue to ensure efficient use of both the existing and the increase of fiscal and financial resources and further scale-up support for the real economy and emerging industries and businesses for the greater benefit of rural areas, agriculture, farmers as well as micro-businesses and services sector. These efforts are aimed at turning the gains of reform into new dynamism of development that would bring more benefit to the people. We have the confidence, ability and resources to overcome various difficulties on the road ahead and realize the major goals of our economic and social development in 2014. Ladies and gentlemen, China is still a developing country. We must give top priority to economic development. Only development will deliver progress. Ultimately, it is only development that will resolve all the problems in China. We cannot advance without changing the growth model, nor can we advance without adequate development. Of course, the development we pursue should be one that promotes employment increases, incomes, improves economic performances and boosts energy conservation and environmental protection. It should also be scientific development, namely sound and balanced development that is in keeping with the laws governing economic activities, social and development and nature. Now there are many destabilizing and uncertain factors in the global economy and China's economic development also faces an array of overlapping and deep-seated problems. So it is a crucial stage where its path upward is particularly steep. In the later half of the year and beyond, we will further accelerate the transformation of the development model, push forward structural readjustment through structural reform, make good use of the golden key of innovation and promote institutional innovation, as well as innovation in science and technology, which will be two main endeavors. By doing so, we will be able to maintain a medium-high growth rate, move towards medium-high level of development and create more value and upgrade a Chinese economy. We will accelerate institutional innovation. Innovation has been the ultimate cause of the leapfrog development of the Chinese economy, as innovation involves not only technology but also institution, management and growth models. China's reform and opening up over the past three decades and more has in itself been a huge innovation drive and the tremendous untapped potential of innovation and development in the future also lies in institutional reform. Just imagine how big a force it could be when a working population of 8 to 900 million out of the 1.3 billion total all become enthusiastic about entrepreneurship, innovation and creation. I believe that the key to realizing that whether liberate our mind, liberate and develop productivity, energize the market and increase social vitality and creativity and remove all institutional obstacles so that everyone who is ready for entrepreneurship will be given more space for it and the blood of innovation could flow unhampered in a society where everyone is full of the spirit of self-development. When reform and innovation fills a massive wave of entrepreneurship by the people and at the grassroots level on the land of 9.6 million square kilometers the enormous power of the diligent and resourceful Chinese people will be fully unlocked and the engine driving China's sustained economic development will constantly regenerate itself and remain powerful. China's effort to comprehensively deepen reform is an ongoing process. The government is taking the lead in conducting a self-targeted revolution like an arrow shot, there is no turning back. We will deepen the reform in the administrative approval system and we hope to complete the task of removing and delegating items subject to government approval originally planned for five years in a shorter period of time. This is to unleash market potential and the driving force for development. If streamlining administration power is like taking a proactive move in a chess game, then introducing new systems is like a serial blast. On the one hand we should provide a full list of government powers which defines the scope of what the government should do. Items not found on the list will be deemed not permissible. Only in this way can we prevent the abuse of government power reduce rent seeking and better serve the people. On the other hand a negative list should be formulated which defines areas of limits to businesses. Items not found on this list will be deemed permissible. Only by doing so can we build open and transparent systemic arrangements with stable expectations and bring about enterprise vitality to the fullest extent. Moreover we should formulate a list of government responsibilities to define how the government should regulate the market. All items on the list should be fulfilled by the government only by doing so can we build a market environment that favours honest operations and fair play energises businesses and encourages innovation and creativity. The government should enhance ongoing and exposed oversight and perform its role well both as a referee of the market order and as a guardian of reform and innovation. As the saying goes only by weeding out the barnyard grass can rise grow properly. Being lenient to law breakers is tantamount to doing wrong to law abiding people. It could even result in bad money driving out the good. We will meet out stringent punishment to companies domestic or foreign that are involved in producing counterfeit and shoddy goods engaging in fraud and deception and stealing trade secrets. Protecting intellectual property is in fact protecting the kindling of innovation and creativity as well as the rights and interests of innovators. We will penalise serious IP infringement to the full extent of law including by imposing heavy fines so as to make law breakers pay unsufferable prices and boost innovation. In addition we will step up science and technology innovation. The Chinese economy is now among the largest in the world but in many sectors China still ranks fairly low and its traditional extensive way of seeking growth has been proved unsustainable. Readjusting the structure must be driven more than ever by progress in science and technology and that requires strategic structural and innovative readjustment. We will support and provide guarantee to some sectors while curbing and scaling back others. Cultivate and promote new products and business models and speed up the development of services high tech and emerging sectors. At the same time we will eliminate over capacity accelerate the transformation of traditional sectors outdate a phase out outdated capacity and build global product and service value chains so that innovation can create higher value added. To that end we must invest more in human capital and increase the ranks of high calibre workers. We will improve the technological sophistication quality and brand awareness of Chinese industries. In particular we need to step up reforms to remove restraints on innovation by individuals and companies and we will give them necessary facilitation and support, vocational training and educational chances. Yesterday marks the Festival of Teachers Educational Development in China is the foundation of any advances in science and technology. We have hundreds of millions of professionals and skilled workers among China's working population. Combined they represent 200 million so when all these people or the majority of them at least can have the chance to put their talents to full use then the Chinese people with this talent of industriousness and resourcefulness if we can put their talents to good use then we can foster a new pattern of innovation by the people and innovation by all supported by the massive physical and intellectual power of the people and the strength of China's manufacturing and creative capability. We can even develop advanced or even revolutionary technologies. In this way we will be able to create greater value in China's economy and move China's development to a higher level. China faces uneven development between its urban and rural areas including its different regions but such a big disparity can entail a huge potential. Promoting a people-centered new type of urbanization will in itself be the biggest structural readjustment. We will seize opportunities brought by technological advances and global industrial revolution to speed up the development of such schemes as broadband China and smart cities leverage the role of cities across the country to promote urban development promote urban rural integration and a gradient development of different regions and bring about a synchronized progress of industrialization IT application new type of urbanization and agricultural modernization. At the same time we will vigorously develop programs related to people's well-being promote equal access to basic public services and enhance household consumption and step up social safety net In this way we will protect those who have failed in their entrepreneurship and give them more chances in their endeavors that will follow. The Chinese economy now heading toward further growth is being weighed down increasing resources and environmental constraints it is imperative for us to enhance energy conservation and environmental protection tackling climate change is not only our binding international obligation as a major responsible country but also the pressing need for our own development So this is in China's fundamental interests we need to promote ecological development and develop green industries we have declared war on pollution and we have earnestly fulfilled our due international responsibilities we are studying action targets on greenhouse gas emissions control including the peak of CO2 emission carbon emission intensity reduction and the increase in the share of non-fossil energy by 2030 and beyond we have the resolve and the capability to pursue green circular and low carbon development we will keep focusing on scientific and technological innovation and we will make hard and unremitting efforts step up environmental management boost the development of energy conservation and environmental protection sectors fulfill the task of energy conservation and emissions reduction and work with all other countries to tackle climate change and we will take concrete steps in this regard Ladies and gentlemen we live in an era defined by deepening economic globalization with countries increasingly depending on one another and interests and sharing their destinies closely the world needs China and China needs the world China's endeavour to realise the two centenary goals and the Chinese dream about the great renewal of the Chinese nation will present great development opportunities and a huge market to the world instead of I win, you lose or a zero sum game we need win-win or all-win which ensures mutual benefit only in this way can the world prosper and advance forward China is resolute in following the path of peaceful development China is a defender and a builder of the existing international system China is dedicated to maintaining an overall environment of peace and stability we call for observance of basic norms governing international relations and we believe that regional conflicts and hotspot issues should be solved peacefully and politically through dialogue we stand ready to deepen cooperation with our Asian neighbours handle differences properly and maintain the overall environment of good neighborliness and friendship as well as the order of peace we advocate the building of an open, fair and integrated global market we support the establishment of both multilateral and bilateral free trade arrangements in order to build a high standard FDA network that is globally oriented we oppose protectionism in all its forms and we oppose trade war we will continue to pursue a more proactive strategy of opening up and improve the open economic system we will focus on stabilizing export and actively expanding import we will move faster to bring greater openness in the services sector as well as China's areas bordering other countries and its fast central and western regions we will keep our foreign investment policies stable and make it even more open we will improve and standardize business environment in order to attract more foreign businesses and investment and draw upon and adopt the advanced technologies, mature managerial expertise and fine cultural achievements of other countries China will always be a major country that is committed to learning from others and will always remain open and inclusiveness in light of China's national conditions we will work hard and turn China into a major innovative country as the Chinese saying goes great vision that makes a country prosper is but the result of collective wisdom so that means that wisdom comes from the general mass a moment earlier I said entrepreneurship and innovation by all the people will spark great development and today more than any other time we need reform and innovation and the sharing of the result of reform and innovation to use a Chinese idiom when all the people come to collect firework the flame will burn high so I hope that all our distinguished participants will speak your minds jointly explore ways for reform innovation and open development share your views on how to create value and achieve mutual benefit and do even more to help China's development and world prosperity and progress letters work together and make our do contribution so let me conclude by wishing the summer diverse a complete success and I wish all of you a successful forum and very good health thank you all thank you very much Your Excellency Premier Li you have given us a comprehensive analysis of China's situation today of its roadmap for the future and particularly also your commitment was appreciated to be a constructive architect of our joint global future I think I was particularly impressed by the innovative spirit which was behind your speech and having here the new champions and being the meeting the annual meeting of the new champions Mr. Premier may I say that you are also after your speech the premier of the new champions I have some questions following up your speech you stressed very much the importance of innovation in order to achieve innovation you have to encourage and promote investments into research and development and you have to do so creating a plane level field for foreign and local companies what measures and what policy support will you give in order to increase research and investment particularly in private and state owned companies and the innovation in your speech today we meet at the new champion I think we can call you a new champion I would like to give you a few questions first of all you stressed the importance of innovation we all know to promote innovation and to increase investment for development to do this we need to create a fair and innovative environment I would like to ask the Chinese government to encourage foreign companies to increase investment for development Chinese government will provide what policy support you first thank you for giving me a new leader I want to give you all of you first of all professor I want to express my appreciation to you for giving me a new title as a new champion before I take on your question I believe that you Mr. Professor and all the people represented here also deserve this title as new champions innovation can be said is a development innovation is an enterprise Chinese government to promote innovation I think in the next few years innovation is the source of dynamism for boosting development the business community represents as the primary entity in making innovations to boost innovation in China I believe the Chinese government needs to take strong efforts in the following areas first of all we need to give innovation innovation also to create a relaxed innovation environment the government needs to increase the power as I just said in the speech if we can encourage the world to be the biggest military war for some people or for most people to create in the fierce market competition we will encourage innovation at the same time the government can take more efforts to create an open and transparent competition in the next few years including the development of Chinese companies to boost innovation because only innovation can lead the market to be the source first the government needs to continue to ease all restrictions in making innovations in other words the government must create a relaxed atmosphere for the business community to embrace full innovation in this regard the government will continue to streamline administration and delegate powers as I said in my speech just now if we will be able to unlock the potential of the largest labour force in the world in making innovations I believe that their potential will be fully unleashed as they participate in the market competition we believe in this way the government will also have more space and energy to focus its efforts on building an open and transparent market and ensure a level playing field for all types of companies the government will also be able to scale up their input in R&D activities because it is only with innovation that those companies will be able to stay at the forefront of the market and always have always keep them attractive to all the customers second the government needs to give innovation to the people to the people and to promote innovation in fact it is beneficial to the companies to the entrepreneurs to increase income also it is beneficial to the companies to have the ability to scale up their input we are now in the process of improving the profit and increase the value of the growth to the policy especially to the service industry to develop the companies to reduce the cost to make them have more power to invest in the development we need to develop to create a new economy to invest to create new insurance to support innovation in the new industry second the government needs to give further boost to all the innovation activities the public financial resources come from the people and must be used wisely in the interest of people's welfare we believe that by boosting innovation by the government there will be an increase in the income of corporate employees and in turn that will also encourage the companies to have more resources channeled into their R&D activities take our reform for replacing business tax with our VAT as an example the purpose of this reform endeavor is to ease the corporate tax burden for the companies engaged in the service sector and companies with a strong R&D capability we hope that in this way they will have more resources to put into their R&D activities at the same time we will also continue to enhance venture capital development and introduce policy insurance products related to science and technology advancement to encourage innovation by all China the government is pushing to change the reform in a large extent or to develop and develop to report to everyone we have reduced 2,000 11 reform we have reduced 2,500 million our current financial income is increasing under this situation to get this money is different but for innovation it is worth it the government has eased the corporate tax burden by as much as 250 billion RMB as you may know that the growth of Chinese government's revenues is slowing down but even so we are determined to press ahead with this reform although it is not that easy but to boost innovation we believe it is fully worthwhile we have already said protecting intellectual property is actually protecting innovation is the passion of developing innovation we have to deal with the cases of criminal intellectual property we will definitely do it to let the innovators feel that innovation is valuable but it is not allowed by others Thirdly, the government will enhance the protection of intellectual property as I said in my speech just now the protection of intellectual property is to protect the kindling of innovation and it will also stimulate the enthusiasm of innovation we will ensure that all cases involving IP infringement will be dealt with in strict accordance with the law and this way we will assure those innovators they will feel that the value of their innovation activities will be fully protected and respected and that the theft of intellectual property will be strictly dealt with I believe innovation is an eternal subject for human society and we are prepared to introduce a lot more steps and policies in this field in the interest of time it will be impossible for me to live them all one by one but if you are interested in the future of intellectual property I can share with you more ideas when we meet here again Mr Premier may I have one or two other questions the first one related to financial reform your government has announced that you are planning to achieve interest rate liberalization within two years what impact will this have on the financial sector and how will the Chinese government regulate and supervise the financial industry in order to make sure that the real economy benefits from the financial industry I noticed that the Chinese government has announced that you are planning to achieve interest rate liberalization within two years I want to know what impact will this have on the financial sector what will the Chinese government take into account to regulate the financial industry and to make sure that the real economy benefits from the financial industry today we can say that we are constantly trying to make sure that the financial price has increased the market price last year we took a big step to release the interest rate while the market price this year we have introduced a few changes the market price has increased the interest rate of the US dollar these two steps seem easy actually it doesn't involve the Chinese economy and involves all the companies and consumers China promotes the market price must bring the financial institutions challenges the financial institutions need to improve the financial institutions to change the economy in recent years we have steadily advanced China's financial reform now money prices in China are being determined by the market in the majority of cases last year we took a major step forward in this direction that is we lifted the restrictions on the banks' lending rates and now the lending rates are determined by the market this year we have press ahead with the reform of RMB exchange rate and we have widened the band for the flotation of the RMB against the US dollar they may seem easy steps but the truth is they are very difficult steps because these steps have impact on the overall state of the Chinese economy and they have also impacted the businesses and the depositors but we will continue to forge ahead with the reform of exchange rate and interest rate to make them market based this naturally will pose a challenge to financial institutions as well as the regulatory authorities this requires that financial institutions need to pursue reform and enhance their ability in providing services to serve the real economy in the course of competition and it also requires the regulatory authorities to enhance their capabilities next step we will closely promote exchange rate in other words to promote exchange rate to improve the performance of the RMB exchange rate and also to develop more capital markets to improve direct financing and equity financing this will also increase the price of exchange rate and we will also promote the RMB to go to the international market to open a more open market to enhance the competitiveness and risks in the future we will press ahead with the reform of making exchange rates and market rates and interest rates market based and we will continue to improve the RMB exchange rate formation mechanism and we will also take strong steps to establish a multi-tiered capital market and raise the proportion of direct financing particularly equity backed financing and that will also help the companies to cut their leverage ratio at the same time we will press ahead with the internationalization of RMB and we want to further open up China's financial industry to enable the financial sector to further enhance its competitiveness in an open market to enhance its capability to contribute to the growth of the economy and to develop the central bank to make the financial industry more competitive and to improve the level of service just now you professor asked me how can the financial industry contribute more to the growth of the real economy I believe one important aspect is to enhance financial services for small and medium-sized companies just now in my speech I mentioned we need to encourage this trend of innovation by all in this society and we need to ensure that there will be adequate financial businesses and services to serve such a need so this year we are going to take steps to encourage those eligible private investors to establish small and medium-sized banks of the entire financial industry to enhance their service capabilities in the course of competition as for the enhancement of the regulatory capabilities I believe that can only be achieved in the course of further opening up so we will introduce at a faster pace and in a deposit insurance system this year we are going to introduce at a faster pace and in a deposit insurance system this year and we will further enhance our institution building to fend off risks we will also enhance our capability in detecting and coping with risks and also ensure that we will be able to avert any regional or systemic financial risks thank you Mr Premier you allow one last question last year because last year when we assembled we spoke a lot about the Shanghai pilot free trade zone it's now one year nearly one year in operation what is the experience in your opinion made with this free trade zone and what are the implications for China's overall reform process Mr Shuang Wu you clearly understood the culture of China the old saying China's the past the future the future and the future however according to the current situation with the due and effects Professor, I think you are really well-versed in Chinese culture, because according to an ancient Chinese philosopher by the name Lao Tzu, one generates three and three will be able to bring us a lot more. So three is a big and wholesome number in the Chinese culture. You have been asking three questions here at the opening session, so I believe this in itself shows that there will be a very fruitful conclusion of our meeting this year, and I'm sure that also augurs well for the development of the Shanghai pilot free trade zone. I think those in the audience who have just applauded for what I said must have come from the Shanghai pilot free trade zone, be it from the management staff or the businesses registered there. Well, as far as I know that the number of companies registered there has actually doubled since the founding of this zone. To establish this Shanghai pilot free trade zone, we want to make it a high land for reform. It is not a low land for policy. Mainly we want to take experimental steps in two areas to explore two kinds of relationships. One is how to handle the relationship between the government and the market, and the other is the handling of the relationship between development and opening up. For example, in the Shanghai pilot free trade zone last year, we hope to have a more broad space for companies to create innovation, that is to say, to relax them. About the handling of relations between the government and the market, we want to introduce a management model based on a negative list in the Shanghai pilot free trade zone. The 2014 edition of this negative list introduced there has been significantly shortened compared with the 2013 version of the negative list. That means the government wants to ease all the restrictions and free up broader space for companies to make innovation and be creative. At the same time, the government also needs to formulate for itself a list of responsibilities and powers to ensure that there will be a level playing field for all companies. About the handling of relationship between development and opening up, we are experimenting with a management model based on both pre-establishment of national treatment and a negative list. We want to open up further to foreign investment, and this opening up is equal to both domestic and foreign investors. By easing market access restrictions, we hope that the companies will feel that there is a broader space for them to do their own businesses, and that there will be an environment that encourages a fair competition. That is good for China's own development and for all the consumers. I want to emphasize here that all types of enterprises will be treated as equals, while China continues to welcome foreign investment into China, and the door of opening up of China will open even wider. We have set for ourselves a timetable that is by the one-year anniversary of the founding of the Shanghai pilot free trade zone. It is high time for us to make a review of the experience gained from this experimental endeavor to see that what can be the experience that can be disseminated and introduced to wider areas across the country on a step-by-step basis. Your question actually reminds me, Mr. Professor, that it is now time for me and my colleagues to visit the Shanghai pilot free trade zone and check the progress there. Mr. Premier, I will follow Chinese wisdom and not ask you a false question. But I would like to thank you on behalf of all the participants for this very clear, very comprehensive presentation of China's policies. I think you have encouraged us all to look at China not only as a new champion but as a great potential, as a country which certainly will continue to grow fast, as a country which will play a major, constructive, responsible, and responsive role in world geopolitics and world geoeconomics. And we would like to wish you all the very best in the implementation of all those policies. And I would like to add a special thanks for the patience with which you have answered my questions. Ladies and gentlemen, this concludes our opening session. Thank you.