Excellency, xi jinping, president of the peoples republic of china. I am so delighted you could join us in office and you accepted my invitation which i issued a year ago. President xi, a very warm welcome to you, the high delegation for you first office visit. Even if temperatures outside freezing. Special significance in the First Chinese president , the audience of political business, it comes at an important law when people are looking for signposts, and in the past several years, the chinese economy hasnt made impressive achievements, lifting people out of poverty and transforming industries, and opening up. Under your leadership, mister president china plays an ever increasing active role from Climate Change to reforming Global Governance and would like to conquer particularly for successful leadership, and presidency last year. And it is marked by great uncertainty. The International Community, to continue its responsive and responsible leadership in providing all of us with confidence and stability, to use the opportunity to thank you for your countrys continuous support of reform. Please welcome his excellency, xi jinping, the president of the peoples republic of china. Translator mister house and. States and government and spouses. International organizations and this is schwab. Ladies and gentlemen and dear friends. I am delighted to come to diverse doorposts the small beautiful town in the alps is indeed an important window through which we can take the pulse of the economy. People from around the world come here to Exchange Ideas and insights which will broaden their vision. This makes for a meeting, a costeffective brainstorming event which i would like to call schwab economics. As you know, two days time, the chinese celebrate the lunar chinese new year. Around this time it is in china, people visit their relatives and friends. And the bond of friendship, this time my wife and i and other members of the delegation come to doorposts davos to send new years greetings to switzerland and the whole world. It was the best of times, it was the worst of times. These are the words used by Charles Dickens to describe the world after the Industrial Revolution. Today, we also live in a world of contradictions. On the one hand, we are growing material wealth, advancements in science and technology, human civilization has developed as never before. On the other hand, frequent regional conflicts, global challenges like terrorism and refugees as well as poverty, unemployment and widening income gap have all added to the uncertainties of the world. Many people are wondering what has gone wrong with our world . To answer this question, one must first track the source of the problem. Some people blame economic globalization for the chaos in our world. Economic globalization was viewed as the treasure cave founded by ali baba in the arabian nights. It has become the pandoras box, the International Community finds itself in a heated debate on economic globalization. I wish to address the Global Economy in the context of economic globalization. The deck i want to make is many of the problems troubling the world are not caused by globalization. For instance, the refugee race from the middle east and north africa in recent years have become a global concern. Several Million People have been displaced, small children lost their lives when crossing the sea. This is heartbreaking to us. It is war, conflict and regional turbulence that have created this problem. The solution to this problem lies in making peace, reconciliation and restoring stability. And it is another example, it is not economic globalization. It is the consequence of excessive profit by Financial Capital and great failure of financial regulation. There is no point in blaming economic globalization for the worlds problems. That is simply not the case and it will not help solve the problem. From the historical perspective, economic globalization results from growing social productivity and is the natural outcome of scientific and technological advancement, not something created by any individuals or countries. Economic globalization has powered Global Growth and facilitated movement of goods and capital, advancements in science, technology, civilization and interaction among people. But we should also recognize economic globalization is a doubleedged sword. When the Global Economy is under downward pressure, it is hard for us to make the Global Economy bigger. It may even shrink and this will strain relations between growth and distribution, between capital and labor and between efficiency and equity. Those developed and developing countries felt the punch. The voices against globalization have laid bare the pitfalls in economic globalization and we need to take that seriously. Just because of defects. [speaking chinese] translator rather we should adopt to and guide economic globalization. Pushing its negative impact and deliver its benefits to all countries and all nations. [speaking chinese] translator there was a time when china also had doubts about economic globalization and was not sure whether china should join the world trade organization. But we came to the conclusion that integration into the Global Economy represents a historical trend. To grow its economy, china must have the courage to swim in the vast ocean of the global market. If one is always afraid of bracing storm and exploring the new world, he will get drowned in the ocean sooner or later. So what china did is to take a great step forward to embrace the global market. We have had our fair share of choking in the water, and we have encountered whirlpools and choppy waves. But weve learned how to swim in this process. It has proved to be the right strategic choice. Whether you like it or not, the Global Economy is the big ocean that you cannot escape from. Any attempt to cut off flows of capital, technologies, products, industries, and people between economies, and channel the waters in the ocean back into isolated lakes and creeks. This is simply not possible and, indeed, it runs counter to the historical trend. The history of mankind tells us that problems are not to be feared. What should concern us is refusing to face up to the problems and not knowing what to do about them. In the face of both opportunities and challenges of economic globalization, the right thing to do is to seize every opportunity, jointly meet challenges, and chart the right course for economic globalization. At the aipac economic leaders meeting in late 2016, i spoke about the need to make the process of economic globalization more invigorated, more inclusive and more sustainable. We should act proactively and manage economic globalization as a privilege so it can release is positive impact and rebalance the process of economic globalization. We should follow the general trend, proceed from our Respective National conditions and embark on the right path way of integrating into economic globalization at the right pace. We should start a balance between efficiency and efficacy to ensure that different countries, different social strata and different groups of people all share in the benefits of economic globalization. This is the responsibility that leaders of our times must take on. [applause] and the people around the world expect nothing less from us. Ladies and gentlemen, dear friends, at present the most pressing task for all of us is to steer the Global Economy out of difficulty. The Global Economy has remained sluggish for quite some time now. The gap between the poor and the rich and between the south and the north is widening. The root cause is that three Critical Issues in the economic sphere have not been effectively addressed. First, lack of robust driving force makes it difficult to sustain steady Global Growth. The Global Growth is now at its slowest pace in seven years. And growth of global trade is even slower than that. Shortterm policy stimulus has proved ineffective, and fundamental structural reform is just unfolding. The Global Economy is now in the period of moving toward new growth drivers, with the role of traditional engines, for growth further weakening. Despite the burgeoning new technologies such as artificial intelligent and 3d printing, new sources of growth are yet to emerge. Add a new path for the Global Economy remains elusive. Second, inadequate Global Economic governance makes it difficult to adopt a new developments in the Global Economy. Christina gart recently told me, developing countries are ready to contribute to 80 of Global Growth. In the past two decades the Global Economic landscape has changed profoundly but the Global Governance system has not embraced the new changes and is therefore inadequate in terms of representation and inclusiveness. The Global Industry landscape is also changing, and new industrial change and supply chains are taking shape. But trade and investment really have not kept pace with these developments. Resulting in acute problems such as close mechanisms and fragmentation of rules. The Global Financial market needs to be more resilient against risk but the mechanisms fail to make the new requirements and is unable to effectively resolve problems such as frequent volatility and International Financial market, and the build up of asset bubbles. Third, and even Global Development makes it difficult to meet peoples expectations for better life. Doctor schwab observed in his book that this revolution will have explosive and farreaching impacts such as growing inequality, particularly a possible widening gap between return on capital and return on labor. The richest 1 of the growth population own more wealth than the remaining 99 combined. Inequality and Income Distribution and Uneven Development space are worrying. Over 700 Million People in the world are still living in extreme poverty. But many families to have warm houses, enough food, and secure jobs is still a distant dream. This is the biggest challenge facing the world today. It is also what is behind the social turmoil in some countries. All this shows that there are indeed problems with Global Growth, governance and development models. And these problems must be addressed. The founder of the red cross said our real enemy is not enabling country. It is hunger, poverty, ignorance, superstition and prejudice. We need to have the vision to deflect these problems. More important when you have the courage to take actions to address them. First, we should develop a dynamic innovation driven growth model. The fundamental problem facing the Global Economy is the lack of driving force for growth. Innovation is the primary force guiding development. Unlike the previous Industrial Revolution, before the Industrial Revolution is unfolding at an exponential rather than linear pace. We need to relentlessly pursue innovation, only with the courage to innovate and reform can we remove bottlenecks blocking Global Growth and development. With this in mind, g20 leaders reached an important consensus at the summit. That is, to take innovation as a key driver and foster new driving force of growth for both individual countries and the Global Economy. We should foster a new Development Philosophy and rise above the debate about whether there should be more fiscal stimulus or more monetary easing. We should follow a multipronged approach to address those symptoms and the underlying problems. We should adopt new policy measures and advanced structural reforms. To create more space for growth and sustain its momentum. We should develop a new growth model and seas of the opportunities presented by the new round of Industrial Revolution and digital economy. We should meet the challenges of Climate Change and aging population. We should also address the negative impact of i. T. Application and automation of jobs. When cultivating new industries and models of business we should always find ways to create new jobs in order to restore confidence and hope to our peoples. Second, we should pursue a well coordinated and interconnected approach to develop a model of open of cooperation. Today, mankind has become a close knit community. All countries enjoy the right to development, yet at the same time they should view their own interests in the broader context, and refrain from pursuing their own interests at the expense of others we should commit ourselves to growing an open Global Economy, to show the opportunities and interests to open up and achieve outcomes. We should not develop a habit of retreating through harbor whenever encountering a storm, for this will never get us to the other shore of the ocean. We must redouble efforts to develop global connectivity, to enable all countries to achieve interconnected growth and share prosperity. We must remain committed to developing free trade and investment. Promote trade and investment liberalization and facilitation through opening up and say no to protectionism. Pursuing protectionism is like locking oneself in a dark room. While the wind and rain may be kept outside, so are light and air. No one will emerge as a winner in a trade war. [applause] third, we should develop a model of fair and equitable governance in keeping with the trends at the time. As the chinese saying goes, people with petty shrewdness akin to trivial matters, while people with vision akin to governance of institutions. There is a growing call from the International Community for reforming the Global Economic governance system, which is a pressing task for us. Only when it adapts to new dynamics in the International Economic architecture can the Global Governance system sustain Global Growth. Countries, big or small, strong or weak, rich or poor, are all equal numbers of the International Community. As such they are entitled to participate in decisionmaking, enjoy rights and fulfill obligations on an equal basis. Emerging markets and developing countries deserve greater representation and voice. The 2010 imf quota reform has entered into force, and its momentum should be sustained. We should adhere to multilateralism to uphold the authority and efficacy of multilateral institutions. We should honor promises and abide by rules. One should not select or been rules as he sees fit. The Paris Agreement is a hard one achievement which is in keeping with the underlying trend of Global Development. All signatories should stick to it instead of walking away from it as this is a responsibly we must assume for future generations. [applause] fourth, we should develop a balanced and equitable and Inclusive Development model. As the chinese saying goes, a just cause should be pursued for common good. Development is ultimately for the people. To achieve more balanced development and ensure that people have equal access to opportunities and share in the benefits of development, it is crucial to have a sound Development Philosophy and model and make development equitable, effective and balanced. We should foster a culture that values diligence, frugality and enterprise and respects the fruits of hard work of all. Priority should be given to addressing poverty, unemployment, the widening income gap and the concerns of the disadvantaged to promote social equity and justice. It is important to protect the environment by pursuing economic and social progress so as to achieve harmony between man and nature and between man and society. The 23rd agenda agenda for Sustainable Development should be implemented to realize balanced developments across the world. [applause] a chinese adage reads, victory is insured when people pool their strength. Success is secured when people put their heads together. As long as we keep to the goal of building a community of shared future for mankind and work hand in hand to fulfill our responsibilities and overcome difficulties, we will be able to create a better world and deliver better lives for our peoples. Ladies and gentlemen, dear friends, thanks to 30 years of reform and opening up, china has become the worlds second largest economy. I write path leads to a bright future. China has come this far because the Chinese People have, under the leadership of the communist party of china, blazed a Development Path that since chinas actual conditions. That suits. This is a path based on chinas realities. China has in the past years succeeded in embarking on a De