Full text of Premier’s keynote speech at the World Economic Forum

Infographic of Premier’s keynote speech at the World Economic Forum

DAVOS, Switzerland — The economy is not heading for a hard landing, Premier Li Keqiang said in a keynote speech at the annual World Economic Forum (WEF) in Davos, Switzerland, on Jan 21.

As the economy, the world’s second-largest, has entered a state of “new normal”, the shift in growth gear from high speed to medium-to-high speed reflects the profound adjustment of the global economy, and is consistent with the law of economics, the Premier said.

In 2015, China will withstand downward pressure and continue with its strategic focus, Li vowed.

“We will continue to pursue a proactive fiscal policy and a prudent monetary policy,” he said. “We will step up anticipatory adjustment and fine-tuning as well as targeted macro-regulation, in order to stabilize economic growth, upgrade its structure and achieve better quality and performance.”

For the economy to maintain medium-to-high speed growth and achieve medium-to-high levels of development, Li said, China must properly use the hand of the government and the hand of the market, and give full scope to both the traditional and new engines of growth.

“To foster a new engine of growth,” Li said, “we need to encourage mass entrepreneurship and innovation, and mobilize the wisdom and power of the people. To transform the traditional engine of growth, we need to focus on increasing the supply of public goods and services, and strengthen weak links in the economy.’’

China will continue to promote trade and investment liberalization and facilitation, and further open up its service sector, central and western regions as well as the capital market to the outside world, the Premier said.

“China will encourage its companies to explore the international market, and work for common development with other countries through greater openness toward each other,” Li said.

Davos, with its bracing air, used to be a resort that focused on treating those with respiratory problems until the invention of penicillin. Li briefly touched on the history of the town in his speech. “We need a new ‘penicillin’ to deal with new challenges in the international situation.”

Li arrived in Davos on Jan 20 for the WEF gathering in the Alpine resort and a working visit to Switzerland.

This year’s forum, which opened on Jan 21, will run until Jan 24 under the theme “The New Global Context.”

More than 2,500 participants from across the world are attending the event and exchanging views on a wide range of issues, including the global economy, environmental protection and nonconventional security.