Ladies and gentlemen,
It’s a great honor to speak at the Asian Financial Forum.
Today’s world is witnessing historic changes. Asia may play a prominent role in the development of the world’s civilization as it once did a few centuries ago. And recently China has set out clear development objectives. By 2035, it will achieve socialist modernization. By 2050, it will develop into a modern socialist country that is strong, prosperous, democratic, culturally advanced, harmonious and beautiful.
The 2035 objective means: China will become a global leader in innovation, a moderately developed country in terms of per capita GDP, and a country with rule of law well-established. It will also see its cultural soft power significantly enhanced, environment fundamentally improved and people in well-rounded development.
It would be a huge disaster if China and other Asian countries reached modernization in the same way as Europe, US and Japan. Over-exploitation and an increasingly fragile environment have already sent out warning signals. In the past two decades, frequent infectious diseases were probably related to expanded human activities. Given that we haven’t defeated COVID-19, were there to be any new epidemic, it’s hard to imagine how we could cope.
Hence, sustainable development is the only way forward for humanity. In 2020, President Xi Jinping announced that China will strive to reach peak carbon emissions by 2030 and carbon neutrality by 2060. We have made great progress in green development. Currently, China’s installed renewable power capacity accounts for roughly 30% of the global total. And energy consumption per unit steadily decreased by about 25% over the past 8 years.
We should try to achieve more efficient and higher quality development. China has achieved great success in reform and opening-up, thanks to the initiative and creativity of the Chinese people. Today, as input intensity of traditional production factors declines, innovation should become the key driver of modernization. We need to deepen policy reforms in the areas of science, technology, education and finance, and nurture more talents. Meanwhile, entrepreneurship, scientist spirit and craftsman spirit should be encouraged. The financial system should better support venture capital, engineering projects and basic R&D.
We should aim for more equitable and secure development. In the past few decades, numerous workers and farmers have grown into well-known entrepreneurs, specialists and technicians. We believe, in the future, more common people will rise as world-class experts. With wider access to education, our newly employed have received higher education on average. Now, West and Central China have paced up their growth. We will continue to equally support the development of the public and non-public sectors. We stand firmly against monopoly and unfair competition. We insist that financial innovation be placed under prudential regulation. And we will endeavor to prevent and mitigate various risks, consolidate national security, maintain law and order, and defend sovereignty and dignity.
We should strive for common prosperity and improve the quality of people’s lives. The urban-rural gaps in development and income are narrowing. Enormous progress has been made towards common prosperity. China’s middle income population has been growing, up from 100 million to over 400 million in the past 10 years. While the fair market determines the factor returns, we will improve the second and tertiary income distribution mechanisms to better the distribution structure of income and wealth.
However, at present, China’s development is still imbalanced. There are a lot of difficulties ahead. Since 2020, developed economies have adopted ultra-loose monetary and fiscal policies. The global financial market has been diverging severely from the real economy. Global inflation and asset bubbles have become increasingly worrisome. Hence, we are ready to enhance macroeconomic policy coordination with other countries to new challenges to the world economy.
For a long time, China’s economic and social development have had positive global impacts. Over the past decade, China contributed 30% on average to global growth. Yet internationally there were some negative remarks on China. Twenty years ago, it was said that China was not a market economy and needed a transition. More recently, they accused China of state capitalism because China has…