 It's my great pleasure and honor to introduce his Excellency, Lee Hurop, Vice Premier of the State Council of the People's Republic of China. In the past three years, the world has been undergoing tremendous changes, with many challenges, the pandemic, the war in Europe, the slowing economy, the energy crisis, food crisis, supply chain instability, climate change, and I could go on. The world is becoming even more fragmented, and we must seek cooperation in this fragmented world. With China's up-and-reform process over 40 years ago, the country has made great contributions to the development of the global economy. Yet the world is in transformation, and we are all focused to rethink our development models. The global community, your Excellency, is eager to understand the next chapter of China's development strategy, both domestically and globally, particularly after the Communist Party's 20th Congress, and we would like to know the opportunities in China and how we can work together with China to tackle the collective challenges that the world is facing, cooperation instead of fragmentation. As Director of the Office of the Central Commission for Finance and Economy, Director of the Financial Stability and Development Committee of the State Council, Head of the leading group for National Science and Technology System Reform and Innovation Systems Development, Vice Premier Liu has played a key role and key roles in China's economy, financial and technology sector, as well as China's international cooperation for over 30 years now. He is a recognized leader and a well-known person internationally. Today we all need to work together to make progress in this fragmented world. We firmly believe that China will play and can play an important role, so we are all keen to hear your perspectives. Mr. Vice Premier of China, how much will China assume a responsive and responsible role to avoid first-of-fragmentation in the world? Please welcome Vice Premier Liu Guo-her. Dr. Klaus Schwab, ladies and gentlemen, friends, good morning. Let me begin by thanking Dr. Schwab for inviting me to Davos again. The last time I came here was 2018. Over the past five years, we have experienced all kinds of unexpected events and witnessed profound changes in the world's political and economic landscape. Therefore, the theme of this year's annual meeting, cooperation in a fragmented world, cannot be more relevant. Mutual understanding is an important prerequisite for cooperation. We've been conducting online communications recently, but we realized that no matter how technologically advanced it is, there is no substitute for in-person meetings. I had quite a number of very warm meetings with some old friends these two days. At this face-to-face event, I hope I can help you understand the Chinese economy better. In 2022, China completed its major political agenda. We held the 20th National Congress of the Communist Party of China and elected the new central leadership with President Xi Jinping at its core. We drew up an ambitious blueprint for advancing Chinese modernization in the coming five years and beyond. Last month, we held the annual Central Economic Work Conference to make plans for this year in line with the development of the 20th CPC National Congress. Last year, China's growth was 3 percent, and we managed to keep jobs and prices stable. Urban survey unemployment rate was 5.6 percent, CPI was 2 percent, and a current account surplus was slightly above 2 percent of GDP. In 2023, we will continue to work to make progress while maintaining stability and follow a proactive fiscal policy and a prudent monetary policy. We will strive to maintain reasonable economic growth and keep prices and jobs stable. Our focus will be placed on expanding domestic demand, keeping industrial and supply chains smooth, supporting the healthy development of private sector, deepening state-owned enterprises' reform, attracting foreign investment, and preventing and diffusing economic and financial risks. If we work hard enough, we are confident that in 2023, China's growth will most likely return to its normal trend, and the Chinese economy will see a significant improvement. A noticeable increase of import, more investment by companies and residential consumption returning back to normal, can be expected. Over the past 10 years, China's GDP grew from 54 trillion to 121 trillion yuan. The average life expectancy rose from 74.8 to 78.2 years last year, and contribution to the global growth last year reached around 36 percent. There are at least five things that we always bear in mind in making such achievements. First, we must always take economic development as the primary and central task. Under the new circumstances, guided by the philosophy of innovative, coordinated, green, open, and shared development, high-quality economic development must always be our goal. Second, we must always make establishing a socialist market economy the direction of our reform. We must let the market play a fundamental role in resource allocation, and let the government play a better role. Some people say that China will go for the planned economy. That is by no means possible. But was they committed to deepening SOE reform, support the private sector and their growth, promote fair competition, oppose monopoly, and champion entrepreneurship? Third, we must always promote all-round opening up, opening up as a basic state policy, as a catalyst of reform and development in China, and a key driver of economic progress. China's door to the outside world will only open wider. Fourth, we must always uphold the rule of law. We must protect property rights and IPRs in accordance with the law. We must create a world-class and market-oriented business environment underpinned by a sound legal framework. Both government and market activities must stay within the confines of law. Fifth, we must pursue innovation-driven development. We should promote innovation and education, grow human capital, foster a sound interaction of finance, technology, and industry, and work to boost productivity. Ladies and gentlemen, friends, the above five points are the important experience we have learned and gained since China started its reform and opening up. We must stick to them and never waver in our commitment. Let me also briefly touch upon three issues about the Chinese economy. First, where we are in resolving financial risks, those in the real estate sector in particular, second, our thinking on the dual circulation, third, the rationale behind China's goal of common prosperity. The financial risks that emerged in China over the past five years are a result of multiple factors, including macroeconomic downturn, loose financial supervision, imprudent business expansion, and insider control. We fought a tough battle to address these risks. We dealt with conglomerates, as well as small and medium-sized financial institutions of high risks, disposed of distressed assets, curbed shadow banking activities, and handled unusual volatility in the capital market. Thanks to these efforts, we have managed to maintain overall financial stability and prevent systemic risks. We are drafting the financial stability law right now, which is expected to provide legal safeguards for diffusing risks and maintaining financial stability as we go forward. The real estate sector is still a pillar for China's economy. But there have been changes since 2021. The real estate sector accounts for nearly 40 percent of bank lending, around 50 percent of overall local government fiscal resources, and 60 percent of urban household assets. Therefore, we pay much attention to the changes that have taken place, including a rapid decline in properties prices and home sales. Many property developers suffered from liquidity shortage and a deteriorating balance sheet. The risks of a handful of leading property developers are particularly noticeable. If not handled properly, risks in the housing sector are likely to trigger systemic risks. That is why prompt steps must be taken to address them. That said, while doing so, we should also prevent possible moral hazards. Here is what we have done. First, we have stabilized expectations by honoring contracts and protecting property rights. For the 2600-plus pre-sold but unfinished housing projects that concern 1.88 million people across the country, we have made ensuring their delivery a priority, and this helped prevent panic in the market. Second, we have conducted massive blood transfusion to the real estate sector so the liquidity situation of real estate companies has been greatly enhanced by way of fresh bank lending, bond issuance guarantee, and equity financing. Third, we have relaxed restrictions that were once introduced to addressing the overheating in the property market to effectively expand demand and enable property developers to generate revenue. Thanks to these efforts, the property market in China has seen noticeable improvement. Looking ahead, China's urbanization is still on a fast track and the enormous potential demand generated in this process will provide a strong underpinning for the development of the real estate sector. Right now, China is stepping up efforts to foster a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. The focus of domestic circulation is on expanding internal demand, promoting industrial upgrade, developing a consumption-led growth model, and rebalancing the economy. This is a logic reflecting international consensus since the financial crisis in 2008. China needs to rebalance, so does the United States. The world economy needs a rebalancing. However, for domestic circulation to function well, it must rely on international division of labor and cooperation, as well as more foreign trade and investment. Therefore, the new development paradigm of dual circulation is to be pursued in an open economy. China's national reality dictates that opening up to the world is a must, not an expediency. We must open up wider and make it work better. We oppose unilateralism and protectionism and look forward to strengthening comprehensive international cooperation with all countries for world economic stability and development and the promotion of economic re-globalization. Now that China has completed the mission of building a moderately prosperous society, in all respects, we have come up with a new social development goal of achieving common prosperity. A historic mission that will help us ensure lasting stability. It is a long-term task that requires an incremental and gradual approach. It is not something to be achieved overnight. Common prosperity, as we see it, is aimed at preventing polarization. It can only be attained through common development and the hard work of every Chinese. Common prosperity is by no means a synonym of egalitarianism or welfareism. As China grows, all Chinese people will be better off. But that doesn't mean their incomes and level of prosperity have to be the same. That is to say, there will be equal opportunities but no guarantee of equal outcomes. Entrepreneurship is a key factor for wealth creation of a society. Therefore, entrepreneurs, both Chinese and foreign, will play an important role as the engine driving China's historical pursuit of common prosperity. If wealth doesn't grow, common prosperity will become a river without source or a tree without roots. Ladies and gentlemen, friends, the theme of this meeting, cooperation in a fragmented world, is highly relevant. As President Xi Jinping noted, changes of our world, of our times and of history, are unfolding in front of us in an unprecedented way. The world has once again come at a historical crossroad, and its future depends on the choices we make. As for how to advance international cooperation, I'd like to share with you the following three observations. First, we need to uphold the right principles and maintain the effective international economic order. Under the new circumstances, the traditional way of thinking cannot provide a solution. Hence, we have to abandon the Cold War mentality, try to understand the essence of things from the perspective of material duality, endeavor to build a community with a shared future for mankind, and join hands to respond to global challenges. We believe that an equitable international economic order must be preserved by all of us. International division of labor, encouragement of competition, anti-monopoly, protection of property rights and IPRs, promoting entrepreneurship and free flow of production factors, fair distribution, ensuring macroeconomic stability and a strong social safety net, are still economic principles that are relevant today. The government has a key role to play on major issues. Despite temporary resistance and some setbacks, we must have the courage to uphold truth and law of economics and address complex issues in a pragmatic way with plain and simple solutions. Second, we need to strengthen international macro policy coordination and strike a good balance between inflation and growth. To tame inflation, some countries have chosen the policy that will likely result in the high recession recovery loop. But it is important to note that inflation this time around is driven by multiple factors, which is why it is complicated. Apart from the demand side, supply side measures are also needed to repair the supply chains and preserve energy and food security. A joint response to this challenge requires international cooperation and maintenance of peace. We call for more attention to the negative spillover effect of major countries' rate hikes on the emerging markets and developing countries so as not to add to more debt or financial risks. We also stand ready to work with all parties to find solutions to the debt issues of some developing countries. Third, we need a global response to climate change. Most countries in the world are keenly aware of the urgency of climate governance and the need for common actions. The COVID-19 pandemic has revealed to us a possible connection between climate change and public health crisis. This is an area where effective international cooperation is needed. China will honor its commitments to the international community, push for global cooperation on climate change, work with other countries to tackle the serious challenges posed by it. How to strengthen cooperation in a fragmented world is a real problem we all face. We must face it squarely, dig deep into the causes of fragmentation, promote positive sum games, identify the possible converging areas of cooperation and explore the mechanisms for doing so. We must also work together to firmly save God's world peace. We should be grateful that this year's Davos Forum presents us with an opportunity to do just that. I wish to form a full success and hopefully help us strengthen cooperation and preserve peace in a fragmented world. Thank you for your attention. Thank you. Thank you very much, Vice Premier. We have time also for two questions and I would like to follow up what you mentioned at the end and come back to China's carbon neutrality goal. China has announced its goal to be carbon neutral by 2060 and to make in such a way a strong contribution to the achievement of the Paris objectives. But what are the practical decisive steps that must be taken and you mentioned already what role does global collaboration play? Could you elaborate a little bit closer, please? Thank you, Dr. Schwab, for your question. Carbon peak before 2030 and carbon neutrality before 2060 are solemn commitments the Chinese government made to the world and we will strive to achieve them. To achieve that we are making efforts in a number of aspects. First, we are adjusting energy structure. We will increase the share of renewable and new energy and enhance the efficiency of traditional energy including carbon capture, storage. These are important. In the meantime, China's national reality dictates that we also need to promote safe and clean use of nuclear power. Second, we will focus on key areas of carbon reduction. If we can focus on these key areas we're able to cut 80 percent of emissions including power generation, construction materials, steel. We're also promoting the change of consumption behavior and make changes to the traditional manufacturing sector. Third, we think institutional arrangements are crucial. We have made a one-plus and policy framework by promoting the building of carbon trade and green finance. On fiscal and public investment, taxation will also make efforts in these aspects. Fourth, we must strengthen international cooperation. We are working with the United States including under the United Nations, APAC, and G20 frameworks. We have established a series of mechanisms. We have already been working with the European Union in areas such as cities and industrial parks. We are working with the European Union on technology and we are collaborating with emerging markets and developing countries. For instance, in the Belt and Road Corporation we have announced the end of building new coal-fired plants in international cooperation and we will also provide financing to countries in need. I would also like to talk about Chinese modernization. Carbon neutrality is China's international obligation. This is also what China needs in driving its internal growth. It is not imposed on us, rather it is something that we want to do. The supply of primary products requires international exchanges. In China we have a massive manufacturing industry and in advancing industrialization and urbanization, China must make changes to our development model and promote green development. I have noticed that the idea of paradigm change in green development that was raised not long ago, the reduction of carbon emissions and carbon neutrality are crucial to China's survival. We're also taking a holistic approach to conserving mountain, water, forest, farmland and grassland ecosystems. We know that lucid waters and lush mountains are invaluable assets and we also need to promote green development among the public. Thank you. Vice Premier, in this context we appreciate very much China's commitment to plant in the framework also of our 1 trillion trees project to plant I think 65 billion trees in the coming years. Yes, exactly. Now I have a question which certainly everybody is keenly interested Vice Premier, because there have been so many different reports about the COVID situation in China, creating concerns about the health situation of course, the impact on economic growth potential and of course the resilience and reliance on supply chains. Could you enlighten us what the situation is and what can we expect of the final, if I may say so, normalization of the situation? Thank you so much for your question. If I may, I still want to answer it in Chinese. As you mentioned, okay, as you mentioned, we are shifting our focus from dynamic zero COVID to the prevention of severe cases. It started on 8th December last year and since 8th January this year we have started to manage COVID as a class B infectious disease. That is a signal of reopening. First, the COVID situation is steady. China has passed the infection peak. Members of the society have returned to normal. There's a short span of time between infection peak and the returning to normal, which somehow is beyond our expectations. Second, living and production have been fully restored. Catering, tourism and other consumption have been restored to normal. I have received quite a surprising number from the transportation department. This year's Chinese Spring Festival will see some 5 billion trips made, which is an enormous scale. That is why I said just now that life has been restored to normal in China. Third, the priority is still on the elderly, those with underlying conditions, including diabetes, high blood pressure, etc. Now we are working to address these priorities. As things stand, hospitals, hospital beds, doctors, nurses, medicine, supply of these factors can be ensured. Finally, for all of you, my foreign friends, you are most welcome to visit China. The policy we are taking right now is travelers only need 48-hour PCR test results upon entry, and there is no quarantine, no other additional requests. All of you, friends from the international community, are most welcome to visit China, who will provide you with the best services. On certain issues, we need some time for transition, but overall, there is no problem. I met a number of old friends yesterday. They told me that they want to visit China for the Boa Forum for Asia, for the High-Level Forum for Development. That is also proof that things have been normalized. Thank you for your question, and thank you for your attention. Thank you. Thank you, Vice Premier. We highly appreciate that you came here to Davos actually just before the Spring Festival starts. You came here with an important delegation. Thank you for sharing with us the latest policies of the Chinese government of China. And I think on behalf of all of us, I want to wish you a good year of the rabbit. Thank you very much. Thank you.