Ladies and Gentlemen,

我知道，与会者对中国经济前景很关注，或许有人担忧受到中国经济速度放缓的拖累，还有人担忧受到中国经济转型的冲击。因此，我想多介绍中国的情况。

I know you are all interested in the outlook of the Chinese economy. Some of you may even worry about the possible potential impact of China’s economic slowdown and transition. To ease your concerns, let me spend more time today on what is really happening in China.

当前，中国经济发展进入新常态，经济由高速增长转为中高速增长，发展必须由中低端水平迈向中高端水平，为此要坚定不移推动结构性改革。

The Chinese economy has entered a state of new normal. The gear of growth is shifting from high speed to medium-to-high speed, and development needs to move from low-to-medium level to medium-to-high level. This has made it all the more necessary for us to press ahead with structural reform.

应当看到，中国经济增速有所放缓，既有世界经济深度调整的大背景，也是内在的经济规律。现在，中国经济规模已居世界第二，基数增大，即使是7%的增长，年度现价增量也达到8000多亿美元，比5年前增长10%的数量还要大。经济运行处在合理区间，不一味追求速度了，紧绷的供求关系变得舒缓，重荷的资源环境得以减负，可以腾出手来推进结构性改革，向形态更高级、分工更复杂、结构更合理的发展阶段演进。这样，中国经济的“列车”不仅不会掉挡失速，反而会跑得更稳健有力，带来新机遇，形成新动能。

It must be noted that the moderation of growth speed in China reflects both profound adjustments in the world economy as well as the law of economics. The Chinese economy is now the second largest in the world. With a larger base figure, a growth even at 7% will produce an annual increase of more than 800 billion US dollars at current price, larger than a 10% growth five years ago. With the economy performing within the reasonable range and the speed of growth no longer taken as the sole yardstick, the strained supply-demand relationship will be eased, the pressure on resources and the environment will be lowered, and more time and energy will be devoted to push forward structural reform. That means, the economy will enter a more advanced stage of development, with more sophisticated division of labor and a more optimized structure. If I could compare the Chinese economy to a running train. What I want you to know is that this train will not lose speed or momentum. It will only be powered by stronger dynamo and run with greater steadiness, bringing along new opportunities and new momentum of growth.

刚刚过去的2014年，我们就是按照这个思路做的。面对下行压力，我们没有采取强刺激，而是强力推进改革，尤其是政府带头改革，大力简政放权，激发市场和企业的活力。全年GDP增长7.4%，在世界主要经济体中是最高的；城镇新增就业1300多万人，在经济放缓情况下不减反增，登记失业率、调查失业率都是下降的；CPI上涨2%，低于年初预期目标。事实说明，我们出台的一系列宏观调控政策是正确的、有效的。更重要的是结构性改革迈出新步伐。

In 2014, we followed exactly the afore-mentioned approach. In the face of downward pressure, we did not resort to strong stimulus; instead, we vigorously pursued reforms, and the government in fact led these reforms by streamlining administration and delegating power. This has motivated both the market and the business sector. GDP grew by 7.4% for the whole year, the best among major economies in the world. Over 13 million new jobs were created in cities, with both registered and surveyed unemployment rates lower than the previous year. That is, we achieved growth in employment despite the economic slowdown. CPI was kept at 2%, lower than the target set at the beginning of the year. These outcomes prove that the host of macro-regulation measures China adopted have been right and effective. More importantly, new progress has been made in advancing structural reform.

不可否认，2015年，中国经济仍面临较大下行压力。在这种情况下如何选择？是追求短期更高增长，还是着眼长期中高速增长，提升发展质量？答案是后者。我们将继续保持战略定力，实施积极的财政政策和稳健的货币政策，不会搞“大水漫灌”，而是更加注重预调微调，更好实行定向调控，确保经济运行在合理区间，同时着力提升经济发展的质量和效益。

Needless to say, the Chinese economy will continue to face substantial downward pressure in 2015. What shall we choose to do under such circumstances? Shall we go for even higher growth for the short term, or for medium-to-high growth and a higher quality of development over the long run? The answer is definitely the latter. We will maintain our strategic focus and continue to pursue a proactive fiscal policy and a prudent monetary policy. We will avoid adopting indiscriminate policies. Instead, we will put more emphasis on anticipatory adjustment and fine-tuning, do an even better job with targeted macro-regulation to keep the economy operating within the reasonable range, and raise the quality and performance of the economy.

我们正在采取有效措施防范债务、金融等潜在风险。中国储蓄率高达50%，能够为经济增长提供充裕资金。地方性债务70%以上用于基础设施建设，是有资产保障的。金融体制改革也正在推进。我在这里要向大家传递的信息是，中国不会发生区域性、系统性金融风险，中国经济不会出现“硬着陆”。

We are taking effective measures to fend off debt, financial and other potential risks. China’s high savings rate, which now stands at 50%, generates sufficient funds for sustaining economic growth. Besides, China’s local debt, over 70% of which was incurred for infrastructure development, is backed by assets. And reform of the financial system is making progress. What I want to emphasize is that regional or systemic financial crisis will not happen in China, and the Chinese economy will not head for a hard landing.

要看到，中国还是一个发展中国家，实现现代化还有很长的路要走。和平是中国发展的基础条件，改革开放和人民对幸福美好生活的追求是发展的最大动力。中国城乡和区域发展空间广阔，国内需求潜力巨大。以中高速再发展一、二十年，中国的面貌就会持续改善，也会给世界带来更多发展机遇。

It must be pointed out that China is still a developing country and still has a long way to go before achieving modernization. While peace is the basic condition for China’s development, reform and opening-up along with our people’s desire for a happy life constitute the strongest impetus propelling development. The space of development in China’s rural and urban areas and various regions is enormous, and the country’s domestic demand will simply generate great potential of growth. Development at medium-to-high speed for another ten to twenty years will bring even bigger changes to China and create more development opportunities for the world.

中国经济要顶住下行压力，实现“双中高”，就需要对传统思维“说不”，为创新体制“叫好”，下决心推进结构性改革。要创新宏观调控，增添微观活力，调整城乡、区域和产业结构，促进比较充分的就业特别是年轻人的就业，改善收入分配和民生福祉。这需要付出艰辛努力，但是我们将不畏困难。只有沿着促改革、调结构的路子坚定走下去，才能使中国经济长期保持中高速增长，发展迈向中高端水平。

For the Chinese economy to withstand downward pressure, and to maintain medium-to-high speed of growth and achieve medium-to-high level of development, we need to say “no” to traditional mindset. We must encourage innovative institutions, and press ahead with structural reform. We need to adopt more innovative macro-regulation policies and develop a more vigorous micro economy. We need to promote more balanced development of industries, between rural and urban areas and among regions. We need to ensure relatively high employment rate, especially sufficient employment for the young people. And we need to optimize income distribution and raise the people’s welfare. All this certainly calls for tremendous efforts. Yet we will stay undaunted in the face of difficulties. We will unswervingly press ahead with reform and restructuring to ensure that our economy maintains medium-to-high speed of growth and achieves medium-to-high level of development.

中国经济要行稳致远，必须全面深化改革。用好政府和市场这“两只手”，形成“双引擎”。一方面要使市场在资源配置中起决定性作用，培育打造新引擎；另一方面要更好发挥政府作用，改造升级传统引擎。

To ensure long-term and steady growth of the Chinese economy, we need to comprehensively deepen reforms. We need to properly use both the hand of the government and the hand of the market, and rely on both the traditional and new engines of growth. We will let the market play a decisive role in resource allocation to foster a new engine of growth. At the same time, we will give better scope to the role of the government to transform and upgrade the traditional engine of growth.

我们说要打造新引擎，就是推动大众创业、万众创新。中国有13亿人口、9亿劳动力、7000万企业和个体工商户，人民勤劳而智慧。如果把全社会每一个细胞都激活，就会使整个经济肌体充满生机，进而汇聚成巨大的推动力量。大众创业、万众创新蕴藏着无穷创意和无限财富，是取之不竭的“金矿”。

To foster a new engine of growth, we will encourage mass entrepreneurship and innovation. China has 1.3 billion people, a 900-million workforce, and over 70 million enterprises and self-employed businesses. Our people are hard-working and talented. If we could activate every cell in society, the economy of China as a whole will brim with more vigor and gather stronger power for growth. Mass entrepreneurship and innovation, in our eyes, is a “gold mine” that provides constant source of creativity and wealth.

这使我想起30多年前的中国农村改革，放开搞活，让农民自主决定生产经营，调动了广大农民的积极性，结果只用了短短几年时间，就解决了长期没有解决的吃饭问题。制度创新激发了亿万人的创造力，也改变了亿万人的命运。两个月前，我去了中国东部的一个村庄，那里有700多户人家，却开设了2800多家注册网店，每天向世界各地售出超过3000万件各类商品。这就是勤劳肯干大众创业的生动写照。

 Speaking of this, I think of China’s rural reform conducted more than 30 years ago. The reform brought farmers’ initiatives into full play and allowed them to decide for themselves matters related to rural production and management. Consequently, the problem of hunger that previously haunted China was solved in just a couple of years. In short, a structural innovation that unleashed the creativity of the people changed the lot of hundreds of millions in China. I also think of a small village I visited two months ago in eastern China. In the village were some 700 households and over 2,800 registered online stores. Each day, more than 30 million items of various sorts were sold to different parts of the world. The story of the village speaks vividly of the hard-working Chinese people actively engaged in entrepreneurship.

今天的中国，需要开发活力的新源泉。活力来自多样性，多样性的碰撞产生智慧的火花，点燃创新发展的火炬。大众创业、万众创新不仅能释放民智民力，扩大内需和居民消费，增加社会财富，增进大众福祉。更重要的是，让所有人都有平等机会和舞台实现人生价值，推进社会纵向流动，实现社会公平正义。

Going forward, China needs new sources of dynamism to carry development forward. Dynamism comes from diversity, which sparks wisdom and fosters innovation. Mass entrepreneurship and innovation serves to unleash people’s ingenuity and power. It will result in greater demand and residents’ consumption, greater social wealth, and greater welfare for the people. More importantly, it will bring opportunity for many and give people the stage to reach life’s full potential. It will also bring about greater social mobility, equity and justice.

管制束缚创新，竞争促进繁荣。我们将进一步深化行政体制改革，继续取消和下放行政审批事项，全面清理非行政许可，推行市场准入负面清单制度，为市场主体松绑减负。这也有利于压缩寻租和腐败的空间。我们将依法保护知识产权，尽力营造鼓励进取、宽容失败的环境，同时保护各类合法产权。

Excessive regulation discourages innovation, and healthy competition is the way to prosperity. We will deepen reform of the administrative system. This means we will continue to abolish or delegate to lower-level governments items previously subject to State Council review and approval. We will comprehensively sort out items requiring non-governmental review and approval, and put in place a negative-list approach for market access. This will incentivize market players, and help reduce the possibility of rent-seeking and corruption. We will protect intellectual property rights in accordance with the law, and do our best to foster an environment that encourages entrepreneurship and tolerates failure. Moreover, we will give protection to all sorts of legal property rights.

我们说要改造传统引擎，重点是扩大公共产品和公共服务供给。中国经济发展虽然取得很大成就，但公共产品与服务不足仍是“短板”。目前，中国人均公共设施资本存量仅为西欧国家的38%、北美国家的23%；服务业水平比同等发展中国家低10个百分点；城镇化率比发达国家低20多个百分点。这当中蕴藏着公共产品与服务的巨大空间。增加这方面供给，属于政府分内的职责，是改善民生的必要举措，也是扩大内需的重要推手。

To transform the traditional engine of growth, we will focus on increasing the supply of public goods and services. China has made remarkable economic achievements, but inadequate supply of public goods and services remains a weak link in development. China’s capital stock on public infrastructure, in per capita terms, is only 38% that of Western Europe and 23% that of North America. The development of its service sector is 10 percentage points lower than other developing countries at similar development stages. And its rate of urbanization is more than 20 percentage points lower than developed countries. This means a massive space for increasing public goods and services. To deliver such public goods and services to improve people’s lives is the government’s responsibility. They are also important ways to boost domestic demand.

今年，我们确定了包括中西部铁路、水利工程、各类棚户区和城乡危房改造、污染防治等重点投资领域。政府在加大财政投入的同时，不再唱“独角戏”，而是通过深化投融资改革，打破垄断，吸引社会资金和外资参与，采取政府和民营合作（PPP）、中外合作以及政府购买服务等方式，放大投资效应。如近年中国西部省区建设一家污水处理厂，需要资金3.35亿元人民币，成功吸引德国一家水务公司参与投资，德方股比占到70%。

This year, we have identified some key areas for investment, including building railways in central and western provinces, constructing water conservancy projects, rebuilding rundown urban areas and old houses in cities and villages, and preventing and controlling pollutions. The government will increase investment in these areas, and it will not act alone. Efforts will be made to break monopoly and reform the investment and financing systems to encourage the participation of private and foreign capitals. The model of public-private partnership (PPP), Sino-foreign cooperatives and government purchase of services will be adopted to better leverage various investment sources. I have an example here to cite. A few years ago, the plan was made to build a sewage treatment plant in a province in western China, and a total of 335 million RMB yuan was needed. The project later attracted investment from a German water company, with the German side controlling 70 percent of the total shares.

我们将推进财税改革，给企业尤其是服务型企业减税降费，推出扶持中小企业的新举措。深化金融改革，继续推进利率、汇率市场化，加快发展中小金融机构特别是民营银行，发展多层次资本市场。推动价格改革，大幅缩减政府定价种类和项目，最大限度放开价格管制。同时，注重发挥政府在“软环境”建设中的作用，扮演好市场监管的角色，打造国际化、市场化、法治化的营商环境，为所有市场主体提供优质高效的公共服务。

Moving forward, we will deepen fiscal and taxation reform, reduce the tax and fees charged to businesses, particularly those in the service sector, and take new steps to support SMEs. We will deepen reform of the financial system, continue to promote liberalization of interest and exchange rates, and accelerate the development of small- and medium-sized financial institutions, private banks in particular, with a view to developing a multi-tiered capital market. We will speed up reform of the pricing system, substantially reduce the types and items for which the government sets the prices, and liberate price regulation to the maximum extent possible. More emphasis will be given to the government’s role in creating a favorable “soft environment”. That means better market regulation, a world-class business environment established on market principles and the rule of law. In this way, we will be able to provide efficient and quality public services to all market players.