Klaus swabb. Its now my distinct honor and great privilege to introduce our opening speaker, his excellency, xi jinping, president of the peoples republic of china. Im so delighted you can join us in davos and you have accepted my invitation i issued over a year ago. President xi, a very warm welcome to you and your delegation, your high level delegation, for your first davos visit. Even a warm welcome even if the temperatures outside are free freezing, your presence here has a very special significance and as the First Chinese president to address this audience of political business and Civil Society leaders, it comes at a very important moment in time, when people are looking for sign posts in a complex and uncertain world. In the past several years, the chinese economy has made impressive achievements, both in terms of lifting people out of poverty and for transformi inin industries to reform and opening up. Under your leadership, mr. President , china has also played an ever increasing active role in global affairs, from Climate Change to reforming the global government system, and i would like to congratulate you particularly for successful leadership of the g20 summit under your presidency last year. Particularly today, in a world marked by great uncertainty and volatility, the International Community is looking to china to continue its responsive and responsible leadership in providing all of us with confidence and stability. Personally, i would like to use this opportunity also to thank you for your countrys continuous support of reform. Ladies and gentlemen, please welcome his excellencesy, xi jinping, the president of the peoples republic of china. [ applause ] translator president doris and mr. Dawson, heads of state and government, deputy heads of state and your spouses. Heads of International Organizations, dr. Kl au klaus schwab and mrs. Schwab. Ladies and gentlemen and friends, im delighted to come to davos. The small beautiful town in the alps is indeed an important window through which we can take the Global Economy. People from around the world come here to Exchange Ideas and insig insights, which will broaden their vision. This makes the wef annual meeting a costs if brainstorming event which i would like to call schwab economics. [ applause ] as you know, in 10 days time, the chinese will celebrate the lunar Chinese New Year around this time, in china, people visit their relatives and friends. In this way, they will streng strengthen their bond friendship. At this time, my wife and the other members of the delegation come to davos to pay our respect to say new year 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 dick kens to describe the world after the Industrial Revolution. Today, we also live in the world of contradictions. On the other hand, with growing material wealth and advances in science and technology, human civilization has developed as never before. On the other hand, however, frequent regional conflicts, global challenges like terrorism and refuges as well as poverty, unemployment and the 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 chorld. Economic globalization was once viewed as the treasure cave founded by alibaba in the arabian nights. But now it has become the pandoras box in the eyes of many. The International Community finds itself in a heated debate on economic globalization. Today, i wish to address the Global Economy and context of economic globalization. The point i want to make is that many of the problems troubling the world are not caused by economic globalization. For instance, the refuge from the middle east and north africa in recent years have become a global concern. Several Million People have been displaced and some small children lost their lives while crossing the rough sea. This is indeed heartbreaking to us. It is raw conflict and regional tur bulengths thbulence that ha this problem. The solution to this problem lies in making peace, promoting reconciliation and restoring stability. The International Financial crisis is another example. It is not an inevitable outcome of globalization, rather, it is the consequence of excessive y days of profit by Financial Capital and grave failure of financial regulation. Theres no point in blamine ini globalization for the worlds problems and that is simply not the case and wont solve the problems. From an historical perspective, economic globalization results from growing social productivity and is the natural outcome of scientific and technological advan advances. Its not something created by any individuals or any count countries. Economic globalization has po r powered Global Growth and facilitated a movement of goods and advances in science and civilization and interactions among peoples. 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 cake of Global Economy bigger, as a matter of fact, it may even shrink, and this will strain the relations between growth and distribution, between capital and labor and between efficiency and equity. Both developed and developing countries have failed the punch. The voices against globalization have laid bare the pitfalls in the process of economic globalization. We need to take that seriously. The chinese tend to say, honey melons hang from bitter vines. Sweet dates grow on thistles and tho thorns. In the philosophical sense, nothing is perfect in the world. One would fail to see the full picture if he claims something is perfect, simply because of its merits. But if he views something as useless just because of its defects. It is true that economic globalization has created new problems. But this is no justification to write off economic globalization all together. Rather, we should adapt to and guide economic globalization. Cushion its negative impact and deliver its benefits to all countries and all nations. 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 an historical trend. To grow its economy, china must have the courage to swim in the vast ocean of the bloebl markgl. 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 was to take a brave step forward to embrace the global market. We have had our fair chair of choking in the water and we have encounter eed whirlpools and choppy waves. But we have learned how to swindle 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 economists and channel the waters in the ocean back into isolated lakes and creeks, this is simply not possible and indeed it run s counter to the historical trend. The history of mankind tells us that problems are not to be f r 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 2016, i spoke about the need to make the process of economic globalization more invigora invigorated, more inclusive and more sustainable. We should act proactively and manage economic globalization as appropriate, so as to release its positive impact and rebalance the process of economic globalization. We should follow the general trend, proceed from our Respective National positions and embark on the right pathway of economic globalization at the right pace. We should strike a balance between efficiency and equity, to insure that different coun y countries, different social strata and different groups of people all share in the benefits of economic globalization. This is a responsibility that leaders of our time must take on. [ applause ]. Translator and the people around the world expect nothing less from us. Ladies and gentlemen, dear friends, at present, the most pressing task before 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 economics 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. Short term 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 technolo technologies, such as Artificial Intelligence and 3d printing, new sources of growth are yet to emerge. And a new path for the Global Economy remains elusive. Second, inadequate Global Economic governments makes it difficult to adopt to new developments in the Global Economy. Madame christian recently told me developing countries already contribute to 80 of Global Growth. In the past few decades the Global Economic landscape has changed profoundly but the Global Governance system has not embraced those new changes and it is therefore inadequate in terms of representation and inclusi inclusiveness. The Global Industrial landscape is changing, new supply. Chai ch are taking place but trade and investment rules have not kept pace with these developments. Resulting in acute problems, such as closed mechanisms and fragmentation of rules. The Global Financial market needs to be more resilient between risks. The Global Financial mechanism fails to meet the new requirement and is unable to effectively resolve problems such as frequent volatility in the International Financial market and the buildup of asset bubb bubbles. Third, uneven Global Development makes it difficult to meet peoples expectations for better lives. Dr. Schwab observes in his book, this round of revolution will have far extensive 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. For 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 count countries. All this shows that there are indeed problems with Global Growth, governments and global models and these problems must be addressed. The founder of the red cross said, our real enemy is not the neighboring country, it is hunger, poverty, ignorance, superstition and prejudice. We need to have the vision to dissect these problems. More importantly, we need to have the courage to take actions to address them. First, we should develop a dynamic innovation driven growth model. The fundamental problem plaguing the Global Economy is the lack of driving force for growth. Innovation is the primary force guiding development. Unlike the previous industrial revoluti revolutions, the Fourth Industrial Revolution is unfo 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 a new driving force of growth for individual countries and a Global Economy. We should foster a new development aal philosophy and rise above the debate. We should follow a multiproned address of both symptoms and the underlying problems. We should adopt new policy measures and advance structural reform. To create more space for growth and sustain its momentum. We should develop a new growth model and seize 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 it application andautomation on jo. When cultivating new industries and new forms 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 interconnecte cd approach to develop a model of cooperation. Today, man tooirnd has becomeki closeknit and community has extensive interests. 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 pursue their own interest s at the expense o others. We should commit ourselves to growing an open Global Economy. To share the opportunities and interests through opening up and achieving outcomes. We should not develop a habit of retreat though harbor when ever 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 prosperi prosperity. We must remain committed to developing free trade and investment, promote trade and investment libizatieralization facilitation to opening up and say no to protectionism. Pursuing protectionism is just like locking one aes self in a darkroom. While 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 trend of the times. As the chinese saying goes, people with pettiness attend to great matters while other people attend to institutions. There is a growing call from the International Community for f m forming the economic governors 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 members of the International Community. As such, they are entitled to participate in decisionmaking, enjoy rights and fulfill obligations on an equal basis. Emerging markets in the developing countries deserve greater representation and a voice. The 2810 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 own our promises and abide by rules. One should not select or ban rules as he sees fit. The Paris Agreement is a hard won achievement, which is in keeping with the underlying trend of Global Development. All should stick to it instead of walking away from it, as this is a responsibility we must assume for future generations. [ applause ] fourth, we should develop a balanced 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 insure that people have equal access to opportunities and share in the benefits of development. It is crush shall to have a sound Development Philosophy and model and make development equitable, effective and bala e 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 while pursuing economic and social progress so as to achieve harmony between men and nature and harmony between men and society. The 2030 agenda for Sustainable Development should be impleme implemented to realize delaysed Development Across the world. [ applause ] realize balanced Development Across the world. [ applause ] a chinese adage reads victory is insured when people pool their strength. Success is assured when people put their heads together. As long as we keep to the goal of building a community of sh e shared future for mankind and work handinhand, for our responsibilities and overcome difficulties, we will be able to create a better world and deliver better lives for our peop peoples. Ladies and gentlemen, daear friends, thanks to 38 years of reform and opening up, china has become the worlds second largest economy. A right path leads to a bright future. Chan has come this far because the Chinese People have, under the leadership of the communist party of china, blaeced a devel blazed a Development Path that suits chinas actual conditions. This is a path based on chinas realitit realitities. China has in the past years, succeeded embarking on a Development Path that suits itself enjoying the wisdom of civilization and practices of other countries in both east and west. Exploring this path, china refuses to stay insensitive to the changing times or to blindly follow in others footsteps. All roads lead to rome. No country should view its own Development Path as the only viable one. Still, should it impose its own Development Path on others. This is a path that puts peoples interests first. China follows a people oriented Development Philosophy and is committed to bettering the lives of its people. Development is of the people, by the people and for the people. China pursues the goal of common prosperity. We have taken major steps to alleviate poverty and lifted over 700 Million People occupant of poverty. Good progress is being made in our efforts to finish building a society of initial prosperity in all respects. This is a path of pursuing reform and innovation. China has tackled difficulties and challenges on its way forward through reform. China has demonstrated its courage to take home difficult issues, navigate treacherous rapids and remove institutional hurdles standing in the way of development. These efforts have enabled us to release productivity and social vit vitality. Building on progress of 30 odd years of reform, we have introduced more than 1,200 reform matches over the past four years injecting powerful impetus into chinas development. This is a path of pursuing Common Development and opening up. China is committed to a fundamental policy of opening up and pursue s an opening strateg. Chinas development is boast domestic and external oriented. While developing itself, china also shares more of its Development Outcomes with other countries and peoples. Chinas Outstanding Development achievements and vastly improved Living Standards of its people are a blessing to both china and the world. Such achievements in development over the past decades owe themselves to the hard work and per sseverance of the Chinese People, a quality that has defined the chinese nation for several thousand sand years. We chinese know only too well that there is no such thing as a free lunch in the world. And no pie will fall from the sky. For a big country with over 1. 3 billion people, development can be achieved only with the dedication and tireless efforts of its own people. We cannot expect others to deliver development to china and no one is in a position to do so. When assessing chinas development, one should not only see what benefits the Chinese People have gained, but also how much efforts they have put in. Not just what achievements china has sought but also what contribution it has made to the world. Then, when we reach a more balanced conclusion about chinas development, between 1950 and 2016, despite its modest level of development and the living standard, china provided more than 400 billion yen of foreign assistance, understands took over 5,400 assistance prrng projects, including nearly 3,000 complete projects and we have housed over 11,000 training workshops in china for 260,000 personnel from other developing countries. Since we launched reform and opening up, china has attracted over 1. 7 trillion u. S. Dollars of Foreign Investment and made over 1. 2 trillion u. S. Dollars of direct unbound investment. Making huge contribution to Global Economic growth. Since the outbreak of the International Financial crisis, china contributed to over 30 of Global Growth every year on average. All these figures are among the highest in the world. These figures speak for themselves. Chinas development is an opportunity for the world. China has not only benefitted from economic globalization but also contributed to it. Rapid growth in china has been a sustained and powerful engine for Global Economic stability and expansion. The interconnected development of china and a large number of other countries has made the World Economy more balanced. Chinas remarkable achievement in Poverty Reduction has contributed to more inclusive Global Growth. Chinas continuous progress in reform and opening up has lent to much momentum to an open World Economy. We chinese know only too well what it takes to achieve prosperity so we applaud the achievements by others. And we wish them a better fut e future. We are not jaealous of others success and will not complain about others who benefitted so much from opportunities presented by chinas development. We will open our arms to the people of other countries and welcome them aboard the express train of chinas development. [ applause ] translator ladies and gentlemen, dear friends, i know you are all closely following chinas Economic Development. Let me give you an update on that. Chinas economy has entered what we call a new normal, in which major changes are taking place in terms of growth rate, development model, economic structure and drivers of growth. But the economic fundamentals sustaining sound development remain unchanged. Besides a sluggish Global Economy, chinas economy is expected to grow by 6. 7 in 2016, still among the highest in the world. Chinas economy is far bigger in size than in the past. And it now generates more output than it did with double digit growth in the past. Household consumption and the Service Sector have become the main drivers of growth. In the first three quarters of 2016, added value of the industry took up 52. 8 of the gdp. And domestic consumption contributed to 71 of economic growth. Household income and employment have steadily risen, while per unit gdp Energy Consumption continues to jump. Our efforts to pursue Green Development are paying off. The chinese economy faces downward pressure and many difficulties, including acute mismatch between excess capacity and an upgrading demand structure, lack of internal driving force for growth, accumulation of Financial Risks and growing challenges in certain regions. We see these as temporary hardships that occur on the way forward. And the measures we have taken to address these problems are producing good results. We are firm in our resolve to forge ahead. China is the Worlds Largest developing country, with over 1. 3 billion people. And their Living Standards are not that high. This reality also means china has enormous potential and space for development guided by the principle of green, open and shared development, we will adapt to the new normal, stay ahead of the curve and make coordinated efforts to maintain steady growth, aksel rat reform, adjust economic structure, improve peoples Living Standards and fend off risks. With these efforts we aim to achieve medium high rate of growth and upgrade the economy to the higher end of the value chain. China will strive to enhance the performance of economic growth. We will pursue supply side structural reform as the general goal, shift the growth model and upgrade the economic structure. We will continue to cut overcapacity, reduce inventory, finan financing, reduce costs and strengthen weak lengths. We will foster new drivers of growth, develop a balanced Manufacturing Sector and upgrade the economy and will implement the Internet Plus action plan to boost effective demand and better meet the individualized and diverse needs of consumers. We will also do more to protect the ecosystem. China will boost market vitality to add new impetus to growth. We will intensify Reform Efforts in Priority Areas and enable the market to play a decisive role in resources and allocation. Innovation will continue to feature predominantly on our growth agenda. In pursuing the strategy of Innovation Driven Development we will bolster the strategic emerging industry, apply new technologies and foster new Business Models to upgrade traditional industries. And we will boost new drivers of growth and revitalize traditional ones. China will foster an enabling and orderly environment for investments. We ill expand Market Access for Foreign Investments, build High Standard zones, protection of Property Rights and level the Playing Field to make chinas markets more transparent and better regulated. In the coming five years, china is expected to import 8 trillion u. S. Dollars of goods, attract 600 billion u. S. Dollars of Foreign Investment, and make 750 billion u. S. Dollars of outbound investment. Chinese tourists will make 700 million overseas visits. All this will create a bigger market, more capital, more products, and a more Business Opportunities more Business Opportunities for other countries. Chinas development will continue to offer opportunities to communities in other countries. China which keep its door open and not close it. An open door allows other countries to access the Chinese Market and china to integrate with the world. We hope that other countries will keep doors open to Chinese Investor and keep the Playing Field level for us. China will vigorously open up for building of freight area of the asia pacific and comprehensive to form a Global Network of free trade net works. Freight trade arrangement and opposing groups that are exclusive or frag meanted in nature. China has launch a currency war. Over three years ago i put forth the road initiative, since then over 100 countries and International Organization have given warm response and support to the initiative. More than 40 countries have signed Corporation Agreement with china and our friends along the road is growing bigger. Chinese companies have made over 50 billion u. S. Dollars in investment and launched ad number of major project, spurring the economic develop of the countries and creating many local jobs. The initiative originated in china. In may this year, china will host in beijing the belt and road forum for international corporation. Which aims to discuss ways to boost corporation, build a Corporation Platforms and Share Corporation outcomes. The forum will expose ways to address problems facing global region economy, create fresh energy for pursuing develop and make belt road better involved. Ladies and gentlemen, World History shows that a road of human civiluation has efr been a both one that mankind has made project by surmounting difficulties. No difficult however daunting will stop mankind from advancing. When enkouner difficulties we should not blame others or run away from spolresponsibilities instead join hands and rise to the challenge. History is kralted by the brave. Let us boost confidence, take action and Work Together for a bright future. Thank you. [ applause ] mr. President , it was a very, very important speech at a historical moment, the history of mankind presently is characterized by mastering enormous treasure coming from the transformation of forces based on logical Economic Transformation of forces which reshape the world. It would be presummous, mr. President to summize your speech, but i with like to just remind us of three very important commitments you made here which fulfill us with confidence for the future. Trust your commitment and youre determination to continue the Economic Development of china, to continue to have china as an important force in the Global Economy as a timing force by repairing well with a new normal necessary restructure reforms. It was also so important to hear from you, mr. President , your commitment to globalization. We have living in global int interindependent world. We cannot recreate bonds. Globalization is a winwin situation. We have a common des ni as mankind and human kind. So your commitment also to a fair, innovative, open and encluive roll is crucial. And i know, mr. President , theres chinese dream, lets have a global dream, a dream of a world which remains innovative, which remains open, which is fair and which is inclusive. Mr. President , we are also living in a new world, you mentioned revolution, we cannot go back to old policies, we cannot just take receipts which may have worked in the old world which is not appropriate any more in order to face the new challenges, for example, Impact Technology as on employment. We need new ideas and new world were refreshing because you are committed to approach global governments, Global Corporation in a new way. We thank you, again for joining us here. I cant tell you, we here as a community of global leaders, we are committed to the same objectives to make this world a better world. To give everybody a better more fulfilled healthier and i would say, a life where he feels really included into society. Thats what we are striving for, thats what we are here for. It all is on us to make it happen. Here we join forces with you. Mr. President , i would like to wish you the first lady, your delegation and the Chinese People a very happy, healthy successful new year. And i hope that you leave with a good memory because what we did in the world is sunshine and speech has brought us some sunshine into our discussions. Thank you. [ applause ] a couple of confirmation hearings to tell you about. Oklahoma attorney general scott pru it will take questions. At 10 00 a. M. Eastern on cspan 2. Capitol hill, congressman tom price will testify at confirmation hearing before the health labor pension hearing. Up next conversation on diplomacy. Ben roads and secretary of state james clan man