 Dear friends, it's my great honor to introduce Yiyun Chao, the Vice President of the People's Republic of China. Your Excellency, Vice President Li, it is for me a special personal pleasure to welcome you to Davos. I have met you the first time 20 years ago, and since that time we have cultivated the framework of our overall partnership with China, a special friendship. Vice President Li, your country is presently so much in the eyes of people assembled here in Davos, and many of you told me they are particularly looking forward to hear from you related to the present fragility of the potential fragility of the Chinese economic growth pattern. And I'm sure, particularly also with the upcoming 35-year plan, that your country will find the right policy mix as it has always done in the past. And I think over the last days we heard again some encouraging signs coming out from China. In this context, I also know how crucial the forced industrial revolution is for sustaining further global economic growth and international cooperation, as well as for pursuing innovative, coordinated, green, open and shared development. And in few of the relevance and impact of this revolution to China, I hope that the discussions here will provide a useful input into the Chinese government, inside and input into the Chinese government's policy formulation. Vice President Li, you also will have a very special responsibility this year. Not only to keep your economic growth on track, but to chair the G20. People are expecting a lot from the Chinese chairmanship of the G20 Group, which after all is the world's foremost global economic cooperation unit. I would like to use, before inviting President Li to take the floor, I would like to inform you also that our traditional annual meeting of the new champions will take place in Tianjin from the 26th to the 28th of June this year, again co-hosted with our Chinese friends. And now please welcome the Vice President of the People's Republic of China, Li Yuanchao. Professor Schwab distinguished guests, ladies and gentlemen, dear friends. I am delighted to attend the 2016 annual meeting of the World Economic Forum. I wish to thank Professor Schwab and the Forum for the kind invitation and the careful arrangements for this special session. The theme of this year's annual forum, Mastering the Force Industrial Revolution, is of great relevance as it examines the new driving force for the world economic growth. The world economy is now at a crucial stage of a shift in the force that drives growth. And the Chinese economy has entered a new normal. Chinese President Xi Jinping has pointed out that the Chinese economy in this new normal will grow more steadily and have more diversified driving forces. His Premier Li Keqiang said that the bright prospects of the Chinese economy are not based on blind optimism but on necessary basis, conditions and impetus. I would like to use today's platform to talk about the current state of the Chinese economy and our policy directions for the next stage. First, the Chinese economy achieved steady growth in 2015, and China remains an important driving force for global growth. To begin with, China's GDP registered a medium-high growth rate of 6.9 percent in 2015. Despite the volatility in the world economy, China still achieved a GDP increase of over $500 billion, which is estimated to be the largest in the world. Such a growth has been achieved on a high basis of an over $10 trillion economy and continues to be one of the fastest among the world's major economies. Secondly, China realized a continued improvement of the lives of its people. Per capita disposable income grew by 7.4 percent, outpacing the overall economy by half a percentage point. In towns and cities nationwide, 13.12 million new jobs were created outperforming the set target. Urban survey unemployment rate in 31 major cities was 5.1 percent, and this is one of the lowest since 2009. Thirdly, China's growth was achieved with an optimized structure. Japan contributed 66.4 percent to growth, an increase by 15.4 percentage points, and 30.3 percentage points higher than investment. The share of the service sector in GDP rose by 2.4 percentage points, reaching 50.5 percent. That is more than half. And this share is also 16.7 percentage points higher than the industrial sector. Per unit GDP energy consumption was lowered by 5.6 percent, China's new industries, new forms of business and new products took shape and grew more rapidly. And the added value of high-tech industries was up 10.2 percent year on year, growing much faster than traditional industries. Online retail sales grew over 30 percent. I have just met Ma Yun, who is the CEO of China's biggest online business. He says that his business is making good profits. The output of new energy costs increased 1.6-fold, and the industrial robots 42 percent. Forestly, China's growth was open and produced mutually beneficial and wing-wing outcomes. In 2015, China's imports totaled 1.68 trillion U.S. dollars, still the second biggest in the world. The outbound direct investment reached 127.6 billion dollars, up by 10 percent year on year. Chinese residents made 120 million overseas visits, up by 12 percent, and spent more than 1 trillion RMB overseas registering an increase of 20 percent. The volume and global share of China's imports of major commodities from international market continued to grow. In 2015, the volume of crude oil import went up by 8.8 percent, hitting a record high. Import volume of soil bins grew by 14.4 percent. Such increase met the need of China's own development and also contributed over one quarter to world economic growth. China remains a major driving force for global economic growth. This is my first point. Second, China has the confidence and capability to maintain medium to high growth. As the world is yet to shrug off the deep impact of the global financial crisis, its economy is still in a period of profound adjustment. The Chinese economy closely connected with the world economy has entered a new normal, shifting from fast, quantitative expansion to a stage of pursuing higher quality and efficiency. In this new normal, China has the confidence and capability to promote economic restructuring and at the same time maintain medium to high growth. As the world economy faces insufficient aggregate demand and commodity prices plunge in the international market, the growth of China's economy, which is now bigger in size and under heavier resource and environment constraint, naturally moderates. This echoes the general proof of economic development. This has been the case for many major economies in the world. Yet the Chinese economy has great potential, resilience and ample space for policy adjustment. We have the confidence and capability to maintain a certain speed of growth to meet our two centenary goals. These two centenary goals refer to one, to double the 2010 GDP and per capita urban rural income and complete the building of a moderately prosperous society in all respects by 2020, when the Communist Party of China celebrates its centenary. And the second centenary goal is that to build China into a prosperous, strong, democratic, culturally advanced and harmonious socialist country by the middle of this century, when the People's Republic of China celebrates its centenary. Over 100 million Chinese have received college education or beyond, and each year our universities turn out over 7 million graduates. They form the basis of our abundant human resources for high quality development. As the Chinese people have defined tradition of valuing frugality, our household savings rate has stayed above 38% over the years. So for households, quite a number of their money has been saved. Last year, the increased residential savings were in excess of 4 trillion RMB. This 2008 residential savings have increased by 35 trillion RMB. This provides a strong basis for boosting consumption and effective investment. In the past five years, China's GDP grew from over $7 trillion to over $10 trillion, forming a solid material foundation for future development. The fiscal revenue of China for 2015 is expected to grow by more than 5%. And by the end of 2015, China's foreign exchange reserve surpassed $3.33 trillion US dollars being the world's biggest. China remains attractive to international capital. Yesterday, I visited ABB Group, the director of the board, said to me that the group still plans to increase their investment in China. And in 2015, we received $126.27 billion of foreign direct investment, up by 5.6% year-on-year. China is committed to reform and will further invigorate market players. We are now formulating the 13th five-year plan, and we will pursue innovative, coordinated, grain-open and shared development, work to achieve sustainable growth of quality and efficiency so that Chinese economy will realize steadier and better development in the long run. This is my second point. Third, China will nurture new driving forces for growth through reform and innovation. For the coming years, China's development priority is to maintain medium-to-high growth, advance to medium-high ends of the industrial chain, and provide new driving forces for the world economy. There is a lot we will do and can do. And the time for me today is not enough to expound on all those things, but here I would like to share with you three examples of China's exploration and practices of reform and innovation. The first example concerns a small mountainous county named Jingde in China's Anhui province with a population of 150,000. This county saw 1,100 new enterprises last year alone. The increase margin was 20%. The local people were so enthusiastic about having their own startups because the local government opened up a green channel for them by adopting three measures. First, items that legally require no administrative approval do not need to have government review and approval. Second, items that legally require administrative approval must be put on the list of power of the government, and third, for all those on the list of power, procedures can be completed conveniently at the government service center. In fact, there has been an upsurge of newly registered market entities across the country as we vigorously push forward reform on administrative review and approval for every single day last year. For every single day last year, over 12,000 newly registered companies emerged across China. In the coming years, China will continue to step up reform on administrative management system, SOEs, fiscal and tax regimes, financial system and in other areas, streamline the administration and delegate power and upgrade service to further unleash the vitality of market entities. The second example is the high-speed rail of China, which represents the world's largest infrastructure investment market, and its building itself into the most important rail transport supplier in the world. By the end of 2015, China's real-world mileage in operation has exceeded 120,000 kilometers, ranking the second in the world. Over 800 billion IMB was invested that year, and the mileage of high-speed railways stood at 19,000 kilometers, ranking the first in the world. One important reason for the rapid development of China's high-speed railway is that building on technologies introduced from abroad, China has developed through innovation an advanced high-speed railway technology system with independent intellectual property rights. This once again proves that innovation is the primary driving force for development. In the future, the Chinese government will try to make the most of the new round of scientific and technological revolution and industrial revolution. In other words, the opportunities brought by the Fourth Industrial Revolution, the theme of the ECS Forum. We will accelerate the implementation of Made in China 2025 and Internet Plus and develop emerging strategic industries as well as modern services at a faster pace. Efforts will be made to improve traditional manufacturing and to promote green manufacturing and smart upgrading, so as to facilitate the development of more cutting-edge technologies and clusters of emerging industries and to enable change and innovation in the way we produce and organize businesses. The third example is a large number of new incubators for young people to start businesses such as innovation works and makers' cafes that have sprung up in the streets of Beijing's Zhongguan Village and the city of Shenzhen. By the end of 2015, China has had more than 2,300 makers' space of different kinds and over 2,500 incubators and accelerators for various tech firms. The number is still growing by over 20 percent every year. Going forward, we will further implement the innovation-driven development strategy, promote mass entrepreneurship and innovation, encourage and develop crowd innovation, crowd sourcing, crowd support and crowdfunding, so that everyone with the will to innovate and start business can have the opportunity and space to achieve success. All factors including labor, knowledge, technology management, and capital will be invigorated and the potential of the entire society will be unleashed, so that is the third point I'm trying to make. Fourth, China will work with the rest of the world to meet challenges and realize win-win cooperation. Over the past eight years, since the global financial crisis broke out, the world economic recovery has been slow, with many emergencies and uncertainties. As an ancient Chinese saying goes, those that stay vigilant against potential risk and danger will survive and thrive. Facing a complex situation, it is important to stay clear-minded about dangers and possible opportunities. What the world economy needs today is greater openness, inclusiveness, cooperation and win-win results. In the next five years, China will commit itself to developing an open economy at a higher level and seeking economic cooperation with other countries as partners. China will continue to advance the initiative of jointly building the Belt and Road for shared benefits and common development with countries along the routes, strengthen international cooperation on industrial capacity and equipment manufacturing, and help developing countries enhance infrastructure development and become more industrialized for win-win outcomes. We will speed up negotiations on FDAs and investment agreements, tear down all kinds of trade barriers, continue to improve the environment for foreign investors in China and participate actively in global economic governance, since the turn of the century. The contribution per person by more than 1.3 billion Chinese people to world economic growth has always been above world average. To ensure sound development in China is in itself an important contribution to the development of mankind. China will, in the spirit of peace, development and win-win cooperation, work with the rest of the world to tackle challenges, cooperate for win-win results, and bolster world economic recovery and development. From the 4th to 5th September this year, the 11th G20 summit will be held in Hangzhou, Zhejiang province of China. As Chinese President Xi Jinping pointed out, the G20 plays a significant role in leading and promoting international economic cooperation, and it should work vigorously for the goal of realizing strong, sustainable and balanced growth. The G20 brings together major developed countries and emerging markets and developing countries. Taken together, these countries account for two-thirds of the world's population, 85 percent of global GDP, and nearly 80 percent of international trade. Under the theme of towards an innovative, invigorated, interconnected and inclusive world economy, the Hangzhou summit will focus its discussions on innovating growth models, improving global economic and financial governance, boosting international trade and investment, and promoting inclusive and interconnected development in an effort to provide new drivers for the development of the world economy. We believe the G20 needs to work on the following four fronts. First, explore new forces for world economic development. The G20 needs to shift its policy thinking for economic development towards greater emphasis on improving mid-to-long-term growth potential. Identified priorities for structural reform sees the new opportunities brought by new factors including scientific and technological innovation, new industrial revolution and digital economy and realize a faster shift from old to new drivers of growth. Second, promote reform on global economic governance. The G20 needs to remain committed to the reform and improvement of the international financial and monetary system, enhance the effectiveness of international financial institutions, and pay more attention to the legitimate aspirations of emerging countries. Efforts should be made to implement the G20 principles on energy collaboration and push forward cooperation in green finance, anti-corruption, and taxation so as to provide institutional guarantee for the health and efficiency of the world economy. Third, build an open world economic system. International trade grew slower than the world economy for three consecutive years from 2012 to 2014. Global FDI in 2014 dropped by 16%. In 2015, the growth rate of global trade in goods and services was down by 0.8 percentage point over last year, lower than the world economic growth rate by 0.5 percentage point. This is quite worrying. The G20 should play a bigger role in promoting global trade, continue to reject protectionism, strengthen the multilateral trading regime, and deepen the development of the global value chain. Investment cooperation around the world should also be strengthened to foster a fair and transparent policy environment for the operation and investment of businesses of all countries. Fourth, share in the fruits of world economic development. In 2015, the international community reached consensus on the 2030 agenda for sustainable development and the Paris Agreement on climate change. The G20 should lead by example and implement them fully. It also needs to increase investment in infrastructure and industrialization, accommodate the special needs of the LDCs and African countries, and help them enhance capacity for independent development to assure in new prospects for common development of all. In preparation for the Hangzhou Summit, China will in the spirit of openness, transparency, and inclusiveness maintain close communication with all parties and heed the views and suggestions of all partners. Change is the rule of nature that guides the four seasons and also the rule of economic development. Although it is a world of ice and snow out there, in a few months time, spring will come back to the mountains. So let us join hands to provide new forces for the development of the world economy. Together, we will bring about a new economic spring for our globe. Thank you. Mr. Vice President, you have provided us with figures and facts which make us optimistic about the Chinese economy, particularly also if we compare to the challenges we have in other countries. And we should remind ourselves it's not just extrapolation of existing development patterns. At the same time, your government is undertaking a deep reaching reform. And also here we had very interesting and promising remarks. I personally, based on my own observation in China, what impresses me most is how much, and you gave some figures, how much China has become entrepreneurial in the last years. And if I look at all those young people full of innovative spirits, I see a completely different, normally if I may say so, a country which competes not only based on its manufacturing advantages, but on its innovative and intellectual capabilities. We have not a lot of time, but I just would like to ask you one question. Taking everything what you said first on the economy and your policies, second on the G20. If you had to tell us in one sentence, what in your opinion is the most important reform of all the reforms? I know it's a package and the package has to be harmonious, but what is for you the most important reform? And I may immediately add the second question. What is for you the possible most important outcome of the G20 Hangshu Summit? Well, to maintain sustainable economic development under the new normal, we need to shift the growth model. First, we need to change our concepts of development. Namely, we need to pursue innovative coordinated green, open and shared development. On the other hand, we need to change the way we grow and shift our focus from speed to quality. And we also need to enhance the quality of our labor force and enhance their education level. The key to that is reform, as you have mentioned. We need to accelerate reform of the government functions, reform of public services and fiscal reform, as well as build a more open economy. This also includes reform of the state-owned enterprises and the pricing reform. You mentioned mass innovation and entrepreneurship. That is also a result of reform. For example, we have cut taxes for the small and micro companies, and we have established funds to guide entrepreneurship. But I believe what is most important is to invigorate two forces. First is to invigorate the market so that the market can unleash its maximum potential. And second, we need to invigorate the creativity of the enterprises and the people. Would you consider the most or what you would you wish to be the most important outcome of the G20 summit? We cannot foresee that. What would be your wish? Well, indeed, China has made the theme of Hangzhou Summit towards an innovative, invigorated, interconnected and inclusive world economy. We have decided on this theme because we want to meet the following goals. First, to chart the course for world economic growth and international economic cooperation. And second, to innovate institutional building. And third, to make new rules and goals. Well, you're on a tower to have joined us and to have made a trip from Beijing here. We will meet our Chinese friends from the 26th to 28th of June in Tianjin. We will pursue all those issues. As you know, the annual meeting of the new champions focuses particularly on innovation. But we also will try in Tianjin to be of help for the preparatory work of the G20 summit. Thank you again for joining. And we wish you for all your reform processes. It's a systemic reform. It's not an individual reform. Individual reforms. We wish you all the best. Thank you, Mr. Vice President.