 I have now the great privilege, pleasure and honor to introduce His Excellency Premier Li Kishang, Premier of the People's Republic of China. Premier Li, it's a pleasure to welcome you back to Davos because you have joined us five years ago and actually we welcome you back also to your home because the World Economic Forum has now two homes, one here but also we have the summer Davos and we have our office in Beijing. This just expresses the great cooperation which we have established under your leadership with your country and I want to thank you for all the support and particularly for your presence and I should mention our appreciation also for being accompanied by such a distinguished delegation comprising the Minister of Foreign Affairs, the Chairman of the NDRC and other distinguished members of the Chinese Administration. Mr. Premier, you come here at the moment when all our eyes in some way are directed to China. We are living in a world where your country has achieved great strengths which is using internationally in a very responsible and responsive way. As President Sumeruga said, the world is characterized the economy probably by vulnerability, by uncertainty this year. So of course we all are very anxious to hear what policies and what cause, what future you foresee for your country being such a decisive factor in the world, in the world, geopolitics and in global economics. So ladies and gentlemen, please welcome very cordially His Excellency Premier Li Keshang, Premier of the People's Republic of China. Professor Klaus Schwab, President Simonetta Sumeruga, Excellencies, ladies and gentlemen, dear friends, it gives me great pleasure to come back to Davos after five years and deliver this address on the podium. Well this morning I had some spare time out of the official program of my visit so I took a bit of mountain hiking nearby. The town of Davos looks beautiful, tranquil and peaceful from the top of the mountain. Yet the world outside is not a tranquil place and it is not peaceful. So we need to jointly find ways to adapt to this new global context. Last night Professor Schwab told me that Davos used to be a place for recuperation from lung disease. However because of the invention of anesthetics, Davos had transformed its function from lung to brain. Today Davos has become one of the world's centers for brainstorming. We need new penicillin to treat new challenges in the international situation. The world today is anything but trouble free, regional hotspots, local conflicts and terrorist attack continue to flare up. Just as President Sumeruga mentioned in her address just now, these challenges have emerged one after another and they pose an immediate threat to humanity. While economic recovery also lacks speed and momentum, major economies are performing unevenly. Commodity prices are going through frequent fluctuations and signs of deflation have made the situation even worse. In fact many people are quite pessimistic about the future of the world. We believe that the guarantee of peace and tranquility is weak and the prospect of development is also elusive. A philosopher once said that we cannot solve problems with the same kind of thinking we used when we created them. Indeed old problems could no longer be solved by cleaning to outdated mindset of confrontation, hatred and isolation. More importantly dialogue, consultation and cooperation must be explored to find solutions to new problems. We need to draw lessons from history and pull our collective wisdom to maximize the convergence of interests among countries. What is fortunate is that in time of hardship and trial, mankind have always been able to find courage to get out of the predicament and gather strength for change and innovation. In a world facing complex situation, we should all work together to uphold peace and stability and also stick to the bottom line of maintaining peace and stability. This year marks the 70th anniversary of the victory of the world's anti-fascist war. To uphold peace and stability is the aspiration of people around the world. The world order established after World War II as well as generally recognized norms governing international relations must be maintained not overturned, otherwise prosperity and development could be jeopardized. The Cold War and the zero-sum mentalities must be abandoned. The winner-takes-all approach does not work. Regional hard sports and geopolitical conflicts must be peacefully resolved through political means. China is opposed to terrorism in all its manifestations. And I will remain committed to the path of peaceful development and uphold regional stability. We have no intention to compete for supremacy with other countries. All countries in the world should cherish peace the same as we protect our eyes so that the achievements and the benefits of civilization, including reason and justice, will prevail. In a world of diverse civilizations, we should all seek to live in harmony with each other. In other words, we should uphold the mindset of peaceful coexistence. Cultural diversity, like biodiversity, is the most precious treasure of our planet. The flowers of different civilizations together make up the garden of human society. There should be mutual respect and harmony among different cultures and religions. We need to respect those with whom we disagree, while maintaining the natural close ties among those with whom we see eye to eye. Like the vast ocean admitting all rivers that run into it, countries also need to work together to expand common ground while accepting differences and seek win-win cooperation through inclusiveness and amateur learning. In a world facing volatile economic situation, we should all work to promote opening up and innovation. In other words, we should unleash the dynamism for opening up and innovation. What has happened since the outbreak of the international financial crisis seven years ago proves that to act in unity is the only way for countries to get through the difficulties together. We are all dependent in this world. While countries are entitled to adopt economic policies based on their national conditions, they also need to strengthen policy coordination with one another in order to expand the convergence of interests and achieve common development. A German proverb says, when the wind of change blows, some build walls, while others build windmills. We should follow the trend of the times and vigorously promote free trade, resolutely reject protectionism and actively expand regional economic cooperation. We should build global value chains and seize the opportunities of the new technological revolution. Although macroeconomic policies are important, structural reform must be carried forward. The need of structural reform is recognized by all countries, and it must be carried through no matter how difficult it is, as this is the only way to foster conditions conducive to global innovation and generate new momentum for global development. Ladies and gentlemen, I know you are all quite interested in the outlook of the Chinese economy. Some may even worry that they might be affected by China's economic slowdown, and that China's economic transition might cause a potential impact. To ease these concerns, I would like to spend more of my time here to talk about the state of the Chinese economy. At present, China's economy has entered a state of new normal. The gear of growth is shifting from high speed to medium to high speed. And development is moving from low to medium level to medium to high level. This new situation has made structural reform all the more necessary. It must be noted, however, that the moderation of growth speed in China reflects the profound adjustment in the world economy, and it is also consistent with the law of economics. The Chinese economy is now the second largest in the world. For the larger base figure, a growth even at 7% will produce an annual increase of more than $800 billion at current price, which is larger than a 10% growth five years ago. With economy performing within the reasonable range, the strained supply-demand relationship will be eased, the pressure on resources and the environment will be lowered, and the more time and energy could be devoted to adjusting and upgrading the economic structure thereby unleashing greater dynamism for the economy. Thus, the economy will enter a more advanced stage of development with more sophisticated division of labor and a more optimized structure. If I could compare the Chinese economy to a running train, what I want to emphasize is that this train will not lose speed or momentum. On the contrary, it will only be powered by stronger dynamo and around with greater steadiness and bring with it new growth and new opportunities. In 2014, we followed exactly the aforementioned approach. In the face of downward pressure, we did not resort to strong stimulus, instead we vigorously pursued reforms. And the government in fact led these reforms by streamlining administration and delegating power. This has motivated both the market and the business sector. GDP expanded by 7.4 percent for the whole year, which was the best among major economies in the world. More importantly, over 13 million new jobs were created in cities, which was higher than the previous year. That is, we achieved growth in employment despite the economic slowdown, and both registered and a surveyed unemployment rates were lower than the previous year. CPI was kept at 2 percent, lower than the target set at the beginning of the year. These outcomes prove that the host of micro-regulation measures China adopted were right and effective. More importantly, we have made further progress on structural reforms. Needless to say, the Chinese economy will continue to face substantial downward pressure in 2015. So what shall we choose to do under such circumstances? Shall we go for even higher growth for the short term, or for medium to high growth and a higher quality of development over the long run? The answer is obviously the latter. We will maintain our strategic focus and continue to pursue a proactive fiscal policy and a prudent monetary policy. We will avoid adopting indiscriminate policies. Instead, we will put more emphasis on anticipatory adjustment and fine-tuning to even better job with targeted micro-regulation to keep the economy operating within the reasonable range. At the same time, we will upgrade the structure of the economy to achieve better quality in the performance. The series of measures currently being implemented will fend off debt, financial and other potential risks. China's high savings rate, which now stands at 50%, generates sufficient funds for sustained economic growth. Besides, over 70% of China's local debt was incurred for infrastructure development and is backed by assets. The reform of the financial system is also making progress. What I want to emphasise is that regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing. It must be pointed out that China is still a developing country and still has a long way to go before achieving modernisation. While peace is the basic condition for China's development, reform and opening up along with our people's desire for a happy life constitute the strongest impetus propelling development. The space of development in China's rural and urban areas and vast regions is enormous, and the country's domestic demand will simply generate great potential growth. Development at medium to high speed for another 10 to 20 years will bring even bigger changes to China and create more development opportunities for the world. For the Chinese economy to withstand downward pressure, to maintain medium to high speed of growth and to achieve medium to high level development, we need to say no to traditional mindset, encourage innovative institutions and press ahead with structural reform. We need to adopt more innovative macro-regulation policies and develop a more vigorous micro-economy. At the same time, we need to improve structure related to the urban and rural areas, regions and work towards relatively sufficient employment, particularly employment for the young people, as well as optimizing income distribution and raising people's welfare. All these certainly cause fortune-mander's efforts, but we will not be afraid of difficulties and we will continue to move along the path of reform and restructuring with great determination. This way, we could shift gear without losing momentum and achieve medium to high speed of growth and to make sure that the Chinese economy will achieve medium to high level of development. We need to make reform and innovation the key levers to generate new momentum for development. We need to properly use the hand of the government and the hand of the market and rely on both traditional and new engines of growth. We will let the market play a decisive role in resource allocation to foster a new engine of growth. At the same time, we will give better scope to the role of the government to transform and upgrade the traditional engine of growth. To foster a new engine of growth, we need to encourage mass entrepreneurship and innovation. China has 1.3 billion people, a 900 million workforce and over 70 million enterprises and self-employed businesses, our people are hardworking and talented. If we could activate every sale in society, the economy of China as a whole will brim with more vigor and gather stronger power for growth. Mass entrepreneurship and innovation could offer endless source of creativity and wealth. It is a gold mine that we could tap into to raise the level of development. Speaking of this, I think of China's rural reform conducted more than 30 years ago. This process brought farmers' initiatives into full play and allowed them to decide for themselves matters related to rural production management. Consequently, the problem of hunger that previously haunted China was solved in just a couple of years. In short, a structural innovation that unleashed the creativity of the people changed the lot of hundreds of millions in China. Two months ago, I visited a small village in East China. It is a village with 700 households and over 2,800 registered online stores. So one man is doing the work of several men. Each day, more than 30 million items of various sorts are sold to different parts of the world. I wish to add here that these people are working in accordance with the labor law. They are not engaged in any unfair competition. They used their limited time to the fullest extent possible. So this, I think, a story of the village speaks vividly of the hardworking Chinese people actively engaged in entrepreneurship. Going forward, China needs new sources of dynamism, a dynamism that comes from diversity and diversity sparks wisdom and innovation. Mass entrepreneurship and innovation serves to mobilize people's wisdom and power, expand China's demand and consumption, increase social wealth, and improve people's welfare. More importantly, it will create opportunity for many and give people the stage to reach life's full potential. It will also bring about greater social mobility, equity and justice. Excessive regulation discourages innovation and healthy competition is a way to prosperity. We will deepen reform of the administrative system. This means we will continue to cancel or delegate to lower-level government items requiring state council review and approval. We will comprehensively sort out items requiring non-governmental review and approval, put in place a negative list approach for market access. This will help incentivize all market players and will help reduce the possibility of rent seeking and corruption. We will protect intellectual property rights in accordance with the law and do our best to foster an environment that encourages entrepreneurship and tolerates failure. We will protect all sorts of lawful property rights. To transform the traditional engine of growth, we need to focus on increasing the supply of public goods and services. China has made remarkable economic achievements, but inadequate supply of public goods and services remains a weak link in development. China's capital stock on public infrastructure in per capita terms is only 38% out of Western Europe and 23% out of North America. The development of its service sector is 10 percentage points lower than other developing countries at similar development levels and its rate of urbanization is more than 20 percentage points lower than developed countries. This means a massive space for increasing public goods and services. To deliver such public goods and services is the government's responsibility and improving people's lives also generates more demand. This year, we have identified some key areas for investment, including building railways in central and western provinces, constructing water conservancy projects, rebuilding round-down urban areas and old houses in cities and villages, and preventing and controlling pollution. The government will increase investment in these areas and it will not act alone. Efforts will be made to break a monopoly and reform the investment financing system to encourage the participation of private and foreign capitals. The model of public-private partnership, or PPP, sign of foreign cooperatives and government purchase of services will be adopted to better leverage various investment resources. I have an example here for you. A few years ago, a plan was made to build a sewage treatment plant in the province in western China and a total of 335 million RMB yuan was needed. The project later attracted investment from a German company with the German side taking 70% of the total share. I hope you find this case in point. Moving forward, we will deepen fiscal and taxation reform, reduce tax and fees charged to businesses, particularly those in the service sector, and take new steps to support SMEs. We will deepen reform of the financial system, continue to promote liberalisation of interest and exchange rates, and accelerate development of small and medium-sized financial institutions, private banks in particular. We will develop the cattle market and ensure that the financial sector plays a better role in serving the real economy. We will speed up reform of the pricing system, substantially reduce the types and items for which government sets the prices, and liberate price regulation to the maximum extent possible. More emphasis will be given to the government's role in creating a favorable soft environment. That means better market regulation, a well-classed business environment forged on market principles and rule of law. In this way, we will be able to provide efficient and quality public services to all market players. China's reform and development will bring more business opportunities to the world. We will explore the possibility of management based on the pre-establishment national treatment and negative list approach, and treat Chinese and foreign companies as equals. We will focus on greater openness in the financial education, cultural medical care, pension and other service sectors. And based on the experience gained through the Shanghai pilot free trade zone, we will steadily advance the development of other free trade zones in Guangdong, Tianjin and Fujian. These initiatives will help investors from across countries to find rich minds. China will also explore new approaches to investment cooperation with other countries. China's high-speed railway, nuclear power aviation, telecommunications and other sophisticated manufacturing capacities are gradually being introduced to other countries. And it will also help increase the amount of export of Chinese equipment and technologies. Davos of Switzerland is a world-famous ski resort. As we understand, to be a good skier, one needs to do three things, go at the right speed, keep balance and be courageous. I believe this is also true for the Chinese economy because what is important now for China is to maintain a medium to high speed of growth, to keep a proper balance between steady growth and a structural adjustment and to push forward reform with greater courage. China will stay firmly committed to reform and opening up. It will focus on structural reform, encourage mass entrepreneurship and innovation, increase supply of public goods and services and use the twin engines to ensure the economy maintains medium to high speed of growth and chief medium to a high level of development. And this will surely help China overcome the middle income gap and achieve long-term sustainable and sound development. This will in turn bring more opportunities to the development of the world. In closing, I would like to call upon the international community to forge ahead and work in unison to uphold peace and stability and evoke harmonious coexistence. By doing so, I'm confident that we will be able to overcome whatever difficulty or obstacle that stand in our way and bring about a better future for the world that we all call home. Thank you very much. Mr. Premier, time is running out, but if you allow me one question. Of course, many people talk about currencies, exchange rates and currency shocks. And we certainly would be very interested in your vision of the LMB. It's internationalization, it's global role and impact. And in this connect, we would be also interested to hear what you feel about using currency exchange rates as tools to boost artificially competitiveness. Well, as for your question about the internationalization of IMB, I know this is one of the issues of great interest to the international community. What I want to emphasize here is that the internationalization of IMB is a natural result of the development of the international market. China is a major trading nation in the world. Because of that, many countries for the purpose of trade and investment, liberalization and the facilitation desire to use IMB as the currency for settling trade and investment. Well, as a result, the offshore business of IMB is expanding continuously. The internationalization of IMB is also a natural result of China's opening up. China is committed to opening up itself wider to the outside world. Opening up is not just about opening up its manufacturing sector, but also service sector, the financial sector included. And many Chinese financial institutions are now exploring international markets and also more and more foreign financial institutions are coming to China to set up agencies and a conducting business in the Chinese market. So the volume of IMB trading is expanding and the quality of such transactions is also improving. What just now I witnessed together with the President of the Swiss Confederation the signing of MOU on financial cooperation between China and Switzerland. And one part of that MOU is the establishment of the IMB clearing arrangement in Switzerland. We are willing to make Switzerland one of the offshore centers, one of the centers of offshore IMB business. And we have also announced a 50 billion IMB quota of the IQ fee program to Switzerland. And all these measures will be conducive to trading investment cooperation between China and Switzerland. The internationalization of IMB is going to be a long-term process. After all, China is still a developing country. In the course of IMB's internationalization, the internationalization of IMB is actually based on China's conditions as a major developing country. So the international use of IMB must be recognized by investors in the market. For us, what is important is to do our homework well. After all, China's financial sector, the opening up of China's financial sector is a new thing. And we're still building up our experience in how can we best open our financial sector to the outside world. And we are going to promote IMB's internationalization in accordance with the needs of the market and also for the purpose of ensuring the stability of the international monetary system. So the IMB's internationalization is going to be a natural thing to happen. Thank you. The time, unfortunately, has run out. You used the metaphor of skiing and managing an economy. So I would wish you, on behalf of all the participants here, good skiing on the slopes of the Chinese economy. Thank you very much, Mr. Premier.