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Opinion / Op-Ed Contributors

Li Keqiang answers questions at forum

Updated: 2016-06-30 08:25

Klaus Schwab: Maybe with the industrial revolution, in five to ten years, we will have implanted microphones. Would you allow me another question? Your mentioned the importance of the fourth industrialization for the future of China's economy. Now what policies will the Chinese government introduce to fully leverage the potential of this fourth industrial revolution?

Li Keqiang: As I said in the special address, to crack the hard nut of the sluggish global economic recovery, we must address the issue at its root. Hence the imperative to advance structural reforms. This new round of industrial revolution, however one may call it, is now booming and it is a force that no one can afford to overlook. Yesterday evening, I had a meeting with Professor Schwab and a number of forum delegates. It seems that we share such an impression among us that if you go to a place dominated by traditional companies or industries, you may see a lot of problems and find the situation disheartening, but if you go to a place or a company which has seized the opportunity of the new round of industrial revolution and where new industries are booming, you feel that the new economy and new drivers are bringing not just hope but powerful strength.

Mankind has the wisdom of embracing such new hope, hope of the new round of industrial revolution. The Chinese government has made a strong call for innovation-driven development, including both technological innovation and institutional innovation to create more room for everyone to be an innovator. We are championing mass entrepreneurship and innovation in a bid to bring out as much potential of each individual as possible. We have seen such examples in our real world that even an intellectually challenged person may demonstrate a genius' talent in certain areas. So we must cherish the creativity of each individual. This is the first point I want to make.

Second, we need to implement fiscal and tax incentives to support innovation and development of new industries. The central government has adopted a series of preferential tax measures and provided financial support. Yesterday I was briefed by the Tianjin local officials and learned that the Tianjin municipal government has provided guarantee support and risk compensation for the financing extended to innovation-oriented companies. This way, the financial institutions, venture capital and angel capital can provide stronger support for developing new industries and upgrading traditional industries.

Third, we will implement differentiated industrial policies to support the new round of scientific revolution and industrial transformation. We will upgrade traditional industries, enforce stricter environmental, safety and product quality standards to cut overcapacity and eliminate backward capacity. We will introduce supportive measures to boost the growth of new industries and provide new forms of business reasonable space for growth.

To conclude, I want to emphasize that next time when we meet again, whether you are engaged in transforming a traditional industry or developing a new one, you are all the new champions.

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