Meeting the Challenges: A Historical Record of China’s Development—Speeches by Wen Jiabao at the World Economic Forum Events

1. Opening Ceremony Speech: Towards a Brighter Future of the Chinese Economy

215 OPENING CEREMONY SPEECH TOWARDS A BRIGHTER FUTURE OF THE CHINESE ECONOMY (11 September 2012, Tianjin) Professor Klaus Schwab, Executive Chairman of the World Economic Forum, Distinguished Guests, Ladies and Gentlemen, I am delighted to meet you, friends old and new here today. Let me first express warm congratulations on the opening of the sixth Annual Meeting of the New Champions, or the Summer Davos, and extend a sincere 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 Davos Forum for this year, “Creating the Future Economy,” is highly relevant and practical. It reflects your vision of sustainable development and meets your high expectations for a bright future for the world economy. China has enjoyed rapid economic development for over thirty years. During the past decade in particular , we firmly seized the strategic opportunities for MeetingTheChallengesEN_FA02_17Dec2013.indd 215 MeetingTheChallengesEN_FA02_17Dec2013.indd 215 19/12/13 11:26 AM 19/12/13 11:26 AM MEETING THE CHALLENGES 216 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 percent, and moved up from sixth to second place in the world. Our per capita GDP rose from over 1,000 US dollars to 5,450 US dollars. China’s foreign trade volume also climbed from fifth to second place in the world, and foreign exchange reserves exceeded three trillion US dollars. China’s industrial structure was upgraded, its agricultural foundation 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 withstood 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 rapid 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. Here I wish to share with you what we have achieved and what we have learned in the course of our endeavors. — We enhanced macro-regulation to promote steady and rapid economic growth. Rapid growth and small fluctuations were the most salient features of China’s economic performance during the past decade.1 We gave full play to the basic role of the market in resource allocation, exercised 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 of expanding domestic demand and stabilizing external demand, increasing investment and stimulating consumption, reinvigorating industries and promoting technological innovation, boosting economic growth and MeetingTheChallengesEN_FA02_17Dec2013.indd 216 MeetingTheChallengesEN_FA02_17Dec2013.indd 216 19/12/13 11:26 AM 19/12/13 11:26 AM 2012 SUMMER DAVOS FORUM 217 improving people’s livelihood, and overcoming current difficulties and pursuing long-term development. Due to these efforts, China was among the first countries to achieve an economic upturn and our accomplishments were also vital in promoting global economic recovery. Some people made accusations about China’s package plan without regard for the facts, claiming 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 the 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 24,600 kilometers of expressways. Infrastructural facilities such as urban rail transport and rural power grid were significantly improved. Over 7,000 large- and medium-sized and key small aging reservoirs...