 Party Secretary of Tianjin, Zhong Gou Li, Mayor of Tianjin, Wang Xinghua, His Excellency President Paul Kagama of Rwanda, His Excellency Prime Minister Raja Parvez Afraf of Pakistan, Her Excellency Prime Minister Helle Torneng-Smith of Denmark, His Excellency Prime Minister Andrius Kubilius of Lithuania, His Excellency Prime Minister Vadis Dombrovskis of Latvia, Ministers, Excellencies, Ladies and Gentlemen, Friends of the World Economic Forum, It is my great honor to welcome you to the annual meeting of New Champions 2012. Inaugurated in 2007, this annual meeting has since become the foremost global business and multi-stakeholder gathering in Asia, with more than 2,000 participants from 86 countries, including 1,000 business leaders, 140 ministers and head of states and governments, 175 young global leaders, global shapers, 120 leading women leaders, key leaders from civil society and social entrepreneurs. In this respect, the summer Davos in China, in terms of size, has reached the dimension of our winter Davos. After six years, we are proud that this annual meeting is no longer the little sister, but rather the true twin sister of winter Davos. The team of this year's meeting is creating the future economy. Our discussions over the next two days will focus on addressing the opportunities and challenges posed by a world that no numbers more than 7 billion people and hope to ensure that the right values, incentives and models are in place to deliver the best possible outcomes for global prosperity, national competitiveness and entrepreneurial growth for future generations. In this respect, China, as the world's second largest economy, is the ideal host given its dynamic, fast-growing economy, which is undergoing rapid transformation. And few places represent this forward-looking mentality better than China's sixth-largest, most populous city, Tianjin. The city has the highest per capita GDP in China and is clearly cutting edge in terms of demonstrating China's future potential. Tianjin has become a magnet for investment, particularly for advanced industries, finance and technology. Nearly two-thirds of Fortune 500 companies have no offices here in Tianjin. We are proud to continue this great collaboration with Tianjin. And on that note, I'm very honored to introduce the mayor of Tianjin, Wang Xingbo. Thank you. Distinguished guests, ladies and gentlemen, good afternoon. Any meeting of new champions in the late-day Tianjin. Once again, people throughout the world are focusing their attention on Tianjin. First of all, on behalf of Mr. Zhang Gaoli, the CPC political bureau member, party secretary of Tianjin Municipality, and on behalf of municipal government and 13 million people of Tianjin, I'd like to extend my warmest welcome to the opening of the forum. And I'd like to extend my sincere welcome to all of the distinguished guests and the friends. Under the leadership of Professor Schwab, the summer dollars forum pay close attention to the development of growth enterprises. It has become a very important platform for the global new champions to explore innovation, plan for development, share experience and seeking excellence. They are contributing positively to the healthy economic development in the world. Tianjin as a host city has been cooperating very effectively with world economic forum. And because of summer dollars, Tianjin is walking towards the world stage. Here I'd like to pay highest tribute to Professor Schwab and also I'd like to sincerely thank different government departments and the world economic forum exception board as well as all of the participants for your labor support. At present, the world economy is undergoing profound changes with challenges and opportunities co-existing. The global financial crisis, the imbalanced growth and lack of momentum of growth, climate change, energy and food security, regional conflicts and many other factors are still facing us. And at the same time, the international community is faced with increasingly more and more new topics and issues. With innovation and breakthrough in science and technology, we are faced with a new round of industrial revolution which will have a deep impact on the structure and pattern of world economic growth. In this annual meeting, the theme is creating the future economy. We will explore the new business model and promoting sustainable growth and high quality growth. This is consistent with the common aspirations in the whole world. Therefore, it will play a very important role for the future development in the world. In the process of world economic restructuring and transformation, China stick to the principle of scientific development and has been accelerating the transformation of economic development model and we have been exploring the all-round and coordinated sustainable development. In my opinion, in the first three decades of this century, scientific and technological innovation, urbanization and improving ecological environment are three major events and issues affecting China's development. They will bring great driving force for domestic demand and create new dynamics for innovation in the society and vigorously promote the improvement of institutional arrangements in international cooperation and social transformation. It will become a very important focus for China's economic upgrading and transformation. At the same time, we will bring new opportunities for world economic development. Tianjin is a city of great vitality. It is one of the new champion cities. We have been making efforts in further opening up and developing the behind new area, promoting regional economic growth, accelerating scientific and technological innovation, promoting organic economic growth, accelerating the development and improvement of ecological environment, improving people's living standards. In the past six years, the average annual growth rate exceeds 16% for the city and we are among the best in energy conservation and emission reduction. So Tianjin is moving ahead along the path of scientific development. Distinguished guests, ladies and gentlemen, innovation guides development to wisdom creates legends. Creating a future economy in this regard, we have a severe task to accomplish. This will test the sincerity of the international community in enhancing cooperation. It will also test our wisdom to cope with this task. Let's join hands and cooperate closely with each other to meet these common challenges and build a more beautiful future for mankind. In conclusion, I wish 2012 Summer Davos Forum a complete success. I wish all of the distinguished guests a happy stay in Tianjin. Thank you. I now have the great honor to welcome His Excellency Premier Wen Jiabao of the People's Republic of China and Professor Klaus Raab, Founder and Executive Chairman of the World Economic Forum. Excellency Premier Wen Jiabao, Party Secretary Zhong Goli, Mayor Wang Xingu, distinguished heads of state, heads of government, members of government. Ladies and gentlemen, dear friends, we are assembled here at a very special moment in global economic history. The world has to master the deepest crisis we have experienced in generations. After nearly five years characterized by major appeals, many feel like we are experiences a continued disintegration of the global system and the downward spiral of negative consequences. It's only global cooperation and global solidarity which will allow us to return to a path of harmonious growth. Today, in our highly interconnected and interdependent world, no country, regardless its size, can determine its fate any more alone. We must urgently bring our global horrors in order. We call on the international community to deliver on the promises made to address the roots of the present unacceptable global situation, particularly looking at rising unemployment levels and the lack of job opportunities for the young generation. The challenge is that we have to confront all of these issues while still burdened by the sins of our past. We are over-leveraged in many developed countries, not only in Europe. We have neglected in many countries to invest into the future. We have a lack of global regulations, particularly within the banking community. And while we are in danger of completely losing in many countries around the world the confidence and the trust of the future generations. Clearly, we need to reboot the economy through intelligent, stimulus measures. By investing into the future. Supporting innovation. Encouraging entrepreneurial activities. Establishing loan facilities and support mechanisms for small and medium-sized enterprises. Just to name a few. The World Economic Forum stands for global citizenship. This means that our ultimate responsibility is not solely to generate the gain global growth, but rather to ensure that an entrepreneurial spirit is harmless to create an environmentally and socially more sustainable future. Looking out at the community here in this room, I see 2,000 new champions already to create the new economy, ready to create jobs for the 21st century, ready to innovate and be responsible in using natural and above all human resources. This meeting is unique as it brings together all stakeholders of society. Our traditional members, the world's foremost global companies, our global growth companies, young global leaders, global shapers, social entrepreneurs, young scientists, technology pioneers. Overall, an outstanding community of entrepreneurial talent. And today, the most competitive countries are those which combine a strong entrepreneurial force with a strong political vision and statesmanship. And for this reason, it's a great honor, privilege and my personal pleasure to welcome a true statesman, His Excellency Ren Chebao Brümie of the People's Republic of China. Brümie Ren is the patron of the Summer Davos as it is called. And it is now the sixth time that we have the pleasure of welcoming him for the opening session. Mr Brümie, you have always addressed and inspired and encouraged us over the last years. And I want to use this opportunity to thank you on behalf of the World Economic Forum and of all of us gathered here for your great support, your partnership and your friendship, which is at the roots of making this annual meeting a true success. Ladies and gentlemen, please welcome His Excellency Brümie Ren Chebao. Professor Klaus Schrock, Executive Chairman of the World Economic Forum. Ladies and gentlemen, I am delighted to meet you, friends of and new here today. Let me first express warm congratulations on the opening of the sixth annual meeting of the new champions, called the Summer Davos, an extended welcome to all the distinguished guests present. The Summer Davos Forum inaugurated in China in 2007 has become a global forum with extensive influence. The theme of the forum for this year, Creating the Future Economy, is highly relevant and practical. It reflects your vision on sustainable development and meets the high expectations for a brighter future of the world economy. China has enjoyed fast economic development for over 30 years. During the past decade in particular, we firmly seized the strategic opportunities for development, made hard and pioneering efforts, and scored new historic achievements in economic and social development. From 2002 to 2011, China's GDP grew at an average annual rate of 10.7%, and moved up from the sixth to the second place in the world. Our per capita GDP rose from US$1,000 to US$5,432. China's foreign trade volume also climbed from the sixth to the second place in the world, and following its chance reserves exceeded US$3 trillion. China's industrial structure was upgraded, its agricultural function was consolidated, and regional development became much more balanced. All-round progress was made in social programs and people's livelihood significantly improved. We have risked the test of many disasters, difficulties and risks. In the recent five years in particular, we effectively tackled the huge impact of the international financial crisis, and sustained steady and fast economic growth. We owe these achievements to the strength of reform and opening up, the persevering spirit of the Chinese nation, and our tireless efforts in exploring a path of scientific development and harmonious society. I wish to share with you what we did and what we have learned in this course of our endeavours. We enhanced macro regulation to promote steady and fast economic growth. Fast growth and low fluctuation was the most salient feature of China's economic performance in the past decade. We gave full play to the basic role of the market in resource allocation. Exercise macro regulation in a scientific way acted quickly to correct market failures and prevented major fluctuations in the economy. After the international financial crisis broke out, we fully implemented a package plan, making parallel efforts in expanding domestic demand and stabilizing external demand, increasing investment and stimulating consumption, reinvigorating industries and promoting technological innovation, boosting economic growth and improving people's livelihood, and overcoming current difficulties and pursuing long-term developments. Thanks to these efforts, China was among the first to achieve an economic upturn, and what we did was also vital in promoting world economic recovery. Some people made accusations about China's package plan in this regard of facts, and they even said that we paid an undue price in this process. I want to make it clear here that it was exactly due to our resolute decision and scientific response that China was able to avoid factory closures, job losses and return of migrant workers to their home villages. These stimulus measures helped us keep the good momentum of economic development, maintain social stability and harmony, and protect China's modernization process from major setbacks. Over the past several years, social wealth has increased, asset quality has improved, and our capacity to resist risks has enhanced. From 2009 to the end of 2011, we began construction of 21 million units of low-income urban housing, and 11 million units have been basically completed. The operational mileage of railways increased by 13,500 kilometers. The mileage of highways was extended by 376,000 kilometers, including the 24,600 kilometers of expressways. Infrastructure facilities such as urban rail transport and rural power grid were significantly improved. Over 7,000 large and small and medium-sized and key small-agent reservoirs were reinforced. We extended access to portable water to many more rural people. A large number of community facilities providing medical, health, education and cultural services were established. A new Wenchuan was built, and all-round progress was made in economic and social development of the disaster's juken areas. Meanwhile, we had fiscal and financial risks under control. Our budget deficit and outstanding government debt in 2011 were 1.8 percent and 15.28 percent of the GDP was lower than the 2,000 levels of 2.57 percent and 16.07 percent. The ratio of non-performing loans in the banking sector went down from 15.2 percent at the end of 2003 to 1.8 percent in 2011. We obtained a true picture of local government debts. The scale of local government debts in the past two years was on the whole stable and the risks were basically under control. We improved the economic structure to raise the quality and efficiency of economic development. A shift from fast growth to sound growth was a fundamental change in the priorities of China's development in the past decade. We took strategic adjustment of the economic structure as the main task of shifting the growth model and raised the quality, expanded the scope and bolstered the momentum of development. To balance the development of domestic and external demand, we rolled out a number of policies and measures to boost domestic demand. As a result, our current accounts of us as a percentage of GDP came down to 2.8 percent. The contribution of final consumption to economic growth rose from 43.9 percent to 50.8 percent and a pattern in which economic growth is jointly driven by consumption, investment and export is taken shape. Guided by an innovation-oriented approach, we formulated and implemented the mid- and long-term programs for science and technology education and human resources development. National R&D spending as a percentage of GDP rose from 1.23 percent to 1.83 percent. The number of granted patents increased by 18.2 times and enterprises have become the backbone of investment and R&D activities. We pursued economic growth by relying on the coordinated development of primary, secondary and tertiary industries. Overall agricultural productivity was in point. Grain output grew for eight consecutive years and grain reserves reached a historic high of over 250 million tons. The manufacturing sector became the largest in the world. High-tech manufacturing expanded at an average rate of 22 percent annually and became a leading pillar industry in the economy. Value added of the service sector as a share of GDP increased by 1.6 percentage points and modern service industries such as finance, insurance, logistics, software and information enjoyed fast development. We promoted parallel development of industrialization, urbanization and agricultural modernization, implemented the overall strategies for development of different regions and achieved initial success in closing the wide-bent gaps between industry and agriculture, urban and rural areas and among different regions. The urbanization rate rose from 39.1 percent to 51.3 percent, bringing a historic change in China's urban rural structure. Since 2008, the central, western and northeastern regions have been growing faster than the eastern region. As a share of GDP of these regions, the national total has not fully risen. A regional development pattern featuring sound interaction among regions and distinctive local features is coming into being. We conserved resources and the environment to enhance capacity for sustainable development. To build a resource-saving and environment-friendly society we identified an important strategy of national development. This was a major step China took in pursuing sustainable development in the past decade. We incorporated mandatory targets of energy conservation and emission reduction into the national economic and social development plan, scaled up in financial input, accelerated the development when industrial structure, mode of production, and consumption pattern conducive to saving energy and resources and protecting the eco-environment, and made vigorous efforts to develop green economy and promote harmony between man and nature. As a result, China's energy consumption per unit of GDP and CO2 emissions both dropped significantly. The environment and air quality standards were revised this year, and such new monitoring indicators as fine particulate matter or PN 2.5 were added. Forest cover rose from 18.21% in 2003 to 20.36% in 2011. We released and implemented the national plan on climate change and played an active part in international response to climate change under the principle of common but differentiated responsibilities. We balanced economic and social development to improve people's livelihood and promote social equity and justice. To promote people's needs first was the most visible highlight in China's development in the past decade. We took improvement of people's lives as a starting point, an ultimate goal of all our work and made real efforts to make development fruits shared by all. We pursued a proactive employment policy over 100 million new urban jobs were created in the past 10 years, including more than 10 million jobs annually for the past five consecutive three years. We made free nine-year compulsory education fully available, established a complete financial aid system for students from poor families, and fulfilled our solemn commitment of not letting a single child drop out of school due to poverty. We made historic progress in building a social safety net covering both urban and rural populations. The new rural pension scheme and the old age pension scheme for non-working urban residents achieved full coverage and an urban and rural social aid system was basically established. The medical insurance system covering the entire population took initial shape. More than 1.3 billion urban and rural residents subscribed to the programs and the coverage of basic medical insurance programs topped 95%. We took active steps to adjust income distribution. Basic pension for enterprise retirees increased at an average annual rate of 10% for eight consecutive years. Minimum wage threshold for personal income tax and a national poverty line were significantly raised. The per capita urban disposable income and per capita rural net income increased at an average annual rate of 9.2% and 8.1% respectively in real time, making the past decade one of the fastest growing periods in the history of new China and rural income grew faster than urban income in the past two years. We honestly implemented the UN Millennium Development Goals. China became the only country in the world to meet the goal of cutting its poor population by half ahead of schedule. We scaled up input in building low-income housing and raised its coverage from less than 4% in 2008 to the current 11%. Hundreds of millions of Chinese families and towns and villages where they lived and where they experienced tremendous changes in these past 10 years. And there were numerous touching stories of Chinese people changing their lives and destinies through hard work and perseverance. We deepened reform and opening up to boost vitality in the momentum of economic and social development. China's reform made continuous breakthroughs in the past decade. This has been the most distinctive feature of our time. We accelerated the building of institutions and mechanisms that are dynamic, efficient, open and conducive to scientific development. We improved the public finance system, placed all extra budgetary funds under budgetary management and made public budgets and final accounts. We unified the tax regimes for Chinese foreign businesses, carried out a comprehensive VAT reform and speeded up a child program of replacing business tax with VAT. We pushed forward the pricing and tax reform to refine all products and launched a price-based reform of resource tax on crude oil and natural gas across the country. We deepened reform in the financial sector. The shareholding reform of large state-owned commercial banks and their listing on the stock market were completed. The problem of split-shear structure in listed companies was smoothly resolved and the reform of R&B exchange rate-forming mechanism and reform of making interest rates market-based moves forward steadily. Our financial system became much more competitive and resilient to risks and played an essential role in countering the international financial crisis. We deepened comprehensive role reform, completely rescinded agriculture taxes, pressed ahead with the reform of 10-year in collective forests and the large registration for contracting pasture land in accordance with the law. We unwivering consolidated and developed the public sector of the economy and gravely encouraged, supported and guided the development of the non-public sector and ensured equal protection of property rights or economic sector developed side-by-side and their competitiveness and overall strength markedly improved. The deepening of reform process highly motivated the enthusiasm, initiative and creativity of the people and injected a new vigor and a vitality in economic and social development. We pursued a winning strategy of opening up fully met our commitments made upon WTO accession and placed equal emphasis on exports and imports and on attracting foreign investment and investing overseas. This has not only helped us gain broader space for our development and economic growth but also made important contribution to economic development in the region and the world. As I look back at each and every step I took in the past two years strong emotions well up inside me. They are emotions of a deep love and a strong confidence that I have always cherished towards my beloved country an ancient civilization bringing with youth for energy. Through ten years of hard work we have elevated our economic and social development to a new level and laid a more solid material, technological and institutional foundation for future development. In today's China new growth areas keep emerging and strengthening science, technology and education are playing a bigger role in driving economic development. There are ample supply of social funds a better educated labour force improved infrastructure facilities and a sound institutional framework. There is a boom in businesses improved macro-regulation by the government and a stable social and political environment. In particular we have established a path of scientific development. All these are important factors that will make a difference for a long time to come. China is still in an important period of strategic opportunities for development. The advance of industrialization information technology and agricultural modernization will continue to unleash huge development potential and the giant ship of the Chinese economy will sail ahead fast yet steadily and reach the shore of a brighter future. Ladies and gentlemen this year the international political and economic situation has remained complicated and brought more difficulties to China's economic development and I, with the overall requirement of making progress by maintaining stability we have strengthened improved macro-regulation followed a proactive fiscal policy and a prudent monetary policy and made our policies more forward-looking targeted and flexible. We have properly handled relations between maintaining steady and robust economic development adjusting the economic structure and managing inflation expectations lay greater emphasis on stabilizing growth and sustained steady and fast economic growth. We have intensified anticipatory adjustments and fine-tuning to respond to the new developments and problems in the economy. In particular we have taken a host of policy measures since May they are mainly as follows we stepped up structural tax cuts and advanced the VAT for business tax pilot program on a priority basis we improved the plan reform and extended it to more places we took a series of measures to ease the tax burden on small and micro-businesses we gave play to the role of monetary policy in making counter-cycle adjustments lowered the required reserve ratio cut the benchmark deposit in lending rates twice widened the floating range of interest rates lending rates in particular and maintained steady and moderate growth in money and credit supply we allocated 26.8 billion yuan from the central budget to support enterprises in undertaking technological upgrading we adopted 42 provisions of implementation for the guidelines of the State Council on encouraging and guiding the self-denialment of non-government investment and the new 36 guidelines we launched the program of promoting energy efficient home appliances to the benefit of the people we stepped up infrastructure development that concerns the people's well-being moved faster in building low-income housing and renovating elaborated rural houses launched the project of upgrading underground pipe networks and water supply and drainage facilities in some countries and improved the water conservancy facilities implemented and improved the policies and measures for secularizing exports put forward trade facilitation and actively expanded imports we abolished and adjusted 314 administrative items that require government review and improvement all these measures have helped boost market confidence and promote steady economic growth in the first half of this year China's GDP grew by 7.8% year on year domestic demand made a major force driving economic growth a share of current and some of GDP dropped to 2.2% employment it's stable in the first 7 months this year 8.12 million new urban jobs were created up by 5% in our year the agricultural situation has further improved evidenced by increase in summer grain output for 90 second in years the consumer price index increased by 1.8% over the same period of last year and inflationary tests have notably eased macroeconomic indicators show that China's economic development is in good shape the speed of growth is still within the target range said at the start of the year and although growth is slowing down it is being more stable as the recent measures are implemented and take effect we expect the economy to further stabilize we will in light of the trend of economic performance fully utilize the ample fiscal and monetary policy space fully tap the huge potential of domestic demand and fully motivate the various localities and departments they will give greater priority to stabilizing growth continue to follow a proactive fiscal policy and a prudent monetary policy and maintain the continuity and stability of our policies we will step up anticipate trade adjustments and fine tuning press ahead with structural tax cuts and keep the increase of money and credit supply at a steady and moderate level we will make stronger efforts to spur consumer demand with the focus on bringing out the energy of non-governmental investment stabilize external demand and bolster the real economy we are fully confident that we have the conditions and ability to overcome the difficulties of our way ahead maintain steady and robust economic growth and achieve development at a higher level and in better quality for a long time to come ladies and gentlemen the international financial crisis has entered its fifth year yet its underlying impact is still with us and and emerging economies alike are all experiencing an economic slow down the sovereign debt crisis in some countries continues to develop international financial and commodity markets are undergoing greater fluctuations market expectations remain low and the downward risks in the global economy are not to be underestimated yet at the same time that major economies and international organizations are forging a broad consensus and taking focused measures to address the prominent challenges in the domestic, regional and global economies it is all the more important for us to boost confidence and stick together to meet the difficulties I always believe that confidence provides a source of strength and technological innovation offers a fundamental means to overcome the crisis I believe green development is the main goal of economic transformation and opening up and cooperation is an irreversible trend of the world I hope that the international community will strengthen macroeconomic coordination push forward reform of the global government structure resolutely oppose trade and investment protectionism advance trade and investment liberalization and facilitation and work jointly from early steady recovery of the world economy I hope that entrepreneurs of all countries will invest more in technological R&D and product innovation vigorously develop green industries that are energy efficient and environment friendly create new market demand and growth areas and bring about all way outcome where businesses boom get stronger the economy prosperous and society progresses ladies and gentlemen I have full confidence in bright future of the Chinese economy and the world economy let us work closely together to disperse the shadow of the international financial crisis and assuring a brighter future I wish the forum full success thank you when Chabao introductory remarks I showed a relatively bleak picture of the world and some listening to you you only can be full of admiration what has been achieved in China despite the global crisis we want to congratulate you for all those achievements and you have shown us that policies based on harmonious scientific development address not only the economic side but the social side the institutional side of what has to be done so much progress has been achieved all our congratulations Mr. Premier I also want to highlight the very responsible and responsive role which China has played on the international scene cooperating with other countries to find common solutions for our global challenges Mr. Premier I don't want to go into specific questions which I have prepared because your speech was so comprehensive so full of practical examples facts of achievement to ask your very personal question or actually to now after 10 years when you look back and you look forward what is for you personally you said you gave your whole heart to the Chinese people but what is for you personally personally the greatest achievement you are most proud of and what is still your biggest worry Mr. Premier please excuse if I am very personal but under the impression of your speech we would like to hear your opinion on those two issues the world economy but in your speech very comprehensive and deep even facing international financial crisis you still took a lot of effort to successfully deal with the crisis and the great achievements we all feel very proud in your speech you talked about under the guidance of a series of policies and measures from economy, society environment, mechanism and so on China has achieved great achievements in the past 10 years I would like to take this opportunity to wish you all the best on the international stage China has done a lot of responsibility with other countries to deal with the challenges facing the international society today I would like to ask you more specific questions because your speech has already fully and deeply influenced your view on China's economic development I would like to ask you Mr. Premier in the past 10 years we all appreciate your spirit we would like to hear from your point of view how do you see China's economic development in the past 10 years and how do you see China's development in the future in the past 10 years the path of China has been changed we have achieved but at the same time we want to see the difficulties and challenges that exist before us the biggest problem is how to maintain economic development not in one time but in a long time how to advance the innovation to become the main motivation of economic development how to solve the problem of too much how to realize the social justice how to transform the economy to change the consumption of resources and the situation of pollution these are all the problems we face we need to continue to promote reform to eliminate the way to transform economic development and to promote economic structure reform is still the motivation and social development this is a bright path we have to continue to advance and can't retreat since China launched a reform and opening up program and in particular over the past 10 years China has traveled an extraordinary journey we have scored remarkable achievements but at the same time we also face a lot of difficulties we face such difficulties as how to maintain steady and robust economic growth this is not just for the time being it is a long term objective we face the difficulty of promoting structural adjustment to ensure that our economy will be mainly driven by innovation we also face such difficulties as closing the widening income gap to ensure social equity and justice and shifting China's growth model to cut our excessive consumption of resources and any damage to our environment to overcome all these difficulties we must press ahead with institutional reform in order to eliminate the institutional obstacles which constrain China's effort to shift its growth model and adjust its economic structure I always believe that reform and opening up are the driving forces for China's economic and social development and they will bring a bright future for China we must always forge ahead we must never fall behind China is still developing its strategic strategy this is not just for the time being if we take a look we have 13 billion people with strong internal needs take a look our city and the region still have a huge gap take a look our economy is changing we still need to introduce the infrastructure that is related to the production our education culture technology development we still need to invest in funding and power all of this reflects the development of China without that kind of thinking after 30 years of reform and development China's growth speed has come to an end the reason why we are adjusting the speed is to make better transformation there is a bank to show me the world a big city underground network from the underground network in Beijing including two pictures one is a network one is Xi Xi La La even if the hands are like this many cities are like this I just got back the earthquake happened in the few democratic and poor regions I found the living conditions transportation and the lives of people with the big cities and the big cities if China's cities are not able to develop we still need more decades even decades speech I emphasized that I believe for a long time to come China will stay at a stage with strategic opportunities for its development our country is a big one with 1.3 billion people we have a strong domestic demand there is still uneven urban rural and regional development there is still much that we can do to shift China's growth model to undertake those efforts which are closely connected with growing production and improving people's livelihood there is still ample room for us to make financial input into our education culture, science, technology and other social programs all in all I believe there is still a big potential for us to be fully tapped for China's development and I do not agree with the argument that China's growth has come to an end after 30 years of reform and opening up well actually we are at an important stage of shifting the growth model and making economic structural adjustments and I believe there is much we can do in this regard I was once shown two pictures of the underground pipe network and the structure of subways of a large European city and Beijing I must say there is a big difference you may know that I have just come back from a disaster stricken area which is located in the border areas of Yunnan and Guizhou provinces an area that is mainly inhabited by the poor ethnic minority Chinese people and I find a very big gap between these areas and Chinese big cities in terms of the people's lives their living and living conditions I should say that if we can press ahead with China's urban and rural development there is much we can do and I believe it will take several dozen and even several dozens of years of hard work to achieve balanced development in China we face a very difficult task to achieve green growth inclusive growth sustainable growth we still have to put in a lot of effort all of these are explained that China has a huge power country has a huge market country we are full of confidence in our own development the Chinese leaders are fully aware of the difficulties and challenges that China faces we still have a long way to go before we can fully achieve industrialization, urbanization and agricultural modernization we face daunting tasks in improving the livelihood of urban and rural people and achieve social equity and justice and we still need to make tremendous efforts to enhance our green inclusive and sustainable growth all these show, I believe that China is a country with enormous potential and a big domestic market and we the Chinese people have full confidence in our own development there are people who suspect us that under the circumstances of the world economy China is also difficult to block the path of the economy is like this China faces the pressure of the economy but we believe that more development of market resources has the power to promote reform we can completely stabilize the economy we insist on the positive and positive policy and maintain the continuity and stability of the policy to increase the probability I can tell you this year we took all the measures we did not exceed the expected of the financial budget that is to say we did it in the financial budget that is why we reduced the growth rate by 7.5% just to have the benefit of the reform and development we are whether the currency or the financial and the full power even though the financial in the last two months also had a big decline the growth rate but at the end of July we reached 100,000,000 million and more than 1,000,000 million we will actually make it a positive policy people have doubted that the Chinese economy will stay on an up turn as the global economy goes on a downturn it is true that the Chinese economy is under notable downward pressure but I believe that with our effort to adjust China's economic structure and shift the growth model with our effort to give greater play to the basic role of the market in allocating resources and continuous progress in China's reform and opening up endeavor we have the ability to keep our economy in a good shape we have followed a proactive fiscal policy and a prudent monetary policy we have maintained the continuity and stability of our policies and stepped up our anticipatory adjustments and fine tuning all these measures have been taken since the start of this year are within our government budget there are no extra budgetary steps we set a lower growth target of 7.5% for this year because we want to focus more energy on shifting the growth model and making structural adjustment there is still ample space for our monetary and fiscal policies our government revenues slowed down significantly it's the growth of the government revenues slowed down significantly in the past two months by the end of July we still have about 1 trillion RMB yuan in surplus on our balance sheet of the government and we have in place around 100 billion RMB yuan as our stability and adjustment funds which we will not take to a use to undertake necessary adjustments and fine tuning to our economic policies to ensure steady economic growth is relatively good traditional industries are difficult but high technology and services are better the eastern region is more difficult but the central and western regions are relatively good this will tell us these two problems first exposed our structural problems we need to adjust the structure especially to change the way of development the other is that any country can not escape the impact of the entire economic situation especially the reduction of foreign needs to our foreign trade has created a bigger problem the situation of the Chinese economy in the first eight months of this year was different from the state of the Chinese economy back in 2008 and 2009 not all companies and sectors have encountered severe difficulties in the first eight months of the year during this process the heavy and chemical industries were encountering difficulties yet light industries were doing quite well traditional sectors encountered difficulties but the high tech and service sectors were doing well the eastern seaboard of China had its difficulties but the central and western region of China developed quite well this shows that our challenges are structural in nature and this shows the necessity for China to adjust its economic structure and shift the growth model at the same time I don't think any country can live free from any impact from the overall global environment and at the same time I should admit that the Chinese export-oriented companies have indeed been seriously affected due to falling external demand I want to add a feature that is the population investment is increasing up to over 62% by the end of August I should also add that non-governmental investment has also been growing by the end of August its share in the total fixed asset investment exceeded 62% we must firmly believe that the stable growth is at a more important level and we must continue to continue to improve our economic structure and improve people's livelihood we have full confidence that the target for China's economic development this year is to improve people's livelihood we have full confidence that the target for China's economic development this year will be met thank you thank you for sharing with us also your outlook about the future of China now if we look back at the extraordinary achievements over the last 10 years achievements in a difficult global economic environment I am sure that we are all full of confidence that you will master with the same comprehensive intelligent policies those challenges ahead of you thank you particularly also for your support of this meeting we are very proud at the World Economic Forum that we were able in partnership with our Chinese friends to establish a truly global event summit here in China of the business community with now over 80 nationalities represented here over 80 countries and I can promise you on the basis of this great partnership over the last 6 years we will build on it we will enlarge it and we will make sure that together we can make a further contribution a great contribution to the continued growth of China and to the continued development of the China people in an economic social and in an environmental context thank you very much very much I believe that we will work together to strengthen the cooperation and expand and deepen the cooperation we have achieved and we all believe that in the future China and the people will continue to achieve more results in the economic and social development and in the future we will achieve more results thank you I have been living in the country for 45 years and in a few months I will retire I really appreciate this discussion I really appreciate from all friends from all companies the discussion that is why we chose China because China is the world with the most population it is a great development it is ancient because it has long-lasting culture and culture it is young because it is alive and developed facing the financial and economic crisis each country needs to trust to understand the same kind of attack the world talks to all companies to understand to build a bridge with a woman I believe next year Da Bou Si will be better in the next half in the next seven years after starting to build the leader as a leader what is the leader I think I will take the opportunity to come to the W.E.F. activity to promote the development of green, inclusive, and sustainable development of the world's green, inclusive and sustainable development of the world. Thank you, everyone. For 45 years of my life to the service of the country, and then a few months I will retire, ideally cherish this opportunity to come to the W.E.F. activity and the opportunity to have an exchange of views with friends and business people from various countries and regions. The WF has chosen China to establish its strong presence because this is a country with a large population. It is a big developing country. It is an old country because of its time-honored civilization and culture. At the same time, it is a young country who is on the course of reform and opening up, bringing with energy and dynamism. In the face of global financial and economic crisis, all countries must increase mutual understanding and stick together in writing out the difficulties on the basis of greater mutual trust. In this connection, the WF has served as a bridge and a bond, bringing together the representatives from various countries and regions across the world, and I have full confidence that the Summer Davos Forum will achieve even greater success in the future. Back in 2007, when the Summer Davos Forum was inaugurated, it already identified itself with the new champions. Who are the new champions? Who are the representatives of the new champions? I believe they are the young people, the talents, the science and technology and our innovative spirit. I fully believe that the Summer Davos Forum in China will act as the new champions and play its important role in driving global green, inclusive and sustainable development. Thank you. Thank you, thank you, Premier, and we wish you for your future, all the best. Please join me in thanking again, Premier Renciabao.