However, he noted that to continue long-term productivity and prosperity, China has to pay more attention to technological innovation and institutional reform.

"Innovation will play an increasingly important role in driving transformation, and this can only come about through growth that is inclusive of all stakeholders in society," Schwab said.

China's new leadership has established an ambitious agenda and reforms, such as market liberalization point in the right direction, he said.

The country needs to set up a level playing field for business, increase accountability and transparency in dealings, and ensure equal opportunities for every player in the marketplace for their talents and entrepreneurial endeavors, Schwab added.

He also shared his "stakeholder philosophy," saying: "After the financial crisis, we need to rethink our global system and economic decision-making processes.

"Cooperation and global trusteeship must be strategic rather than reactive, with an emphasis on prioritizing global needs and addressing imbalances.

"We must not only serve our own interests, but also the interests of all those who are interconnected with us."

Schwab hoped that the World Economic Forum he founded 40 years ago could serve as a place to create mutual trust through "international networks of informal interaction and experience exchange."

"By bringing together established leaders from the public and private sector with the Forum's young and dynamic communities, we can find new ideas and impulses for sustainable growth ... and we can learn a lot from them," he said.

The Davos fonder called on world leaders attending the meeting to leave with a vision that is "far-sighted, dynamic and goes beyond crisis management," therefore embracing the forum's mission -- Committed to Improving the State of the World.