"A China well on its way to achieving balanced development with an emphasis
on trade integration and cross-border flows" is what Klaus Schwab of the World
Economic Forum (WEF) described as his "optimal scenario" for China in 20 years.
The founder and executive chairman of the Davos, Switzerland-based WEF made
the remarks in an interview with China Daily on Friday.
Schwab said China would achieve the scenario when "it is backed by
well-executed financial, legal and administrative reforms and the progressive
emergence of a middle class and internal market."
The WEF was founded in 1971, calling itself an independent organization
committed to improving the state of the world by engaging leaders in
partnerships to shape global, regional and industry agendas.
The WEF is convened in Davos, Switzerland every winter and will hold a
summer conference in China from 2007.
Schwab, who first visited China in 1979, said he is filled with admiration
for China's dramatic transformation to what it is today.
China has achieved extraordinary growth for nearly three decades all the more
impressive given the scale and magnitude of the Chinese economy, he said. It has
thus "played a leadership role in propelling global economic growth."
China's economy, as measured in terms of gross domestic product, amounted to
18.3085 trillion yuan (US$2.289 trillion) in 2005, based on 10.2 per cent
annualized growth from the previous year, according to figures from China's
National Bureau of Statistics.
At the same time, Schwab said, the country has faced significant challenges
both at home and abroad.
"Domestically, China's leadership has carved an ambitious development path
based on scientific and technological advancement while protecting the
environment and enhancing social harmony," he said.
"Externally, China's leading position in the global economy calls for a
greater role in addressing global economic imbalances and promoting closer
economic collaboration."
The WEF founder stressed that innovation is the key to tackling future
challenges. "Amid rising global commodity prices and increasing domestic wage
pressures, China needs to become much more resource efficient."
To be truly competitive globally, he said, "China must create greater value
out of ideas, products and processes, all of which form the very essence of
innovation."
That's why the China Business Summit 2006, which opens in Beijing on Sunday
as a co-project of the China Enterprise Confederation and the WEF, takes
"Sustainable growth through innovation" as its theme, Schwab said.
More than 500 participants from 27 countries are expected to take part in the
two-day event, which aims to bring together key stakeholders to rethink and
reshape the country's growth and industry agendas.
Schwab said China has been producing formidable global industry players such
as Lenovo. "As domestic companies restructure, innovate and internationalize,
there is definitely potential for more Chinese companies to emerge as global
champions," he said.
In view of this, the WEF has especially chosen China as the headquarters of
global growth companies those that have demonstrated clear potential to become
leaders in the world economy.
The Annual Meeting of Global Growth Companies (dubbed "Summer Davos in
China") will be held for the first time in China in August 2007. The host city
is to be determined by the end of this month via a bidding system.
Like the WEF's annual meeting in Davos, the China event will be an
independent platform for global leaders to shape international, regional and
industry agendas, according to Schwab.
"The event will feature industry-specific meetings of global business leaders
to address the unique opportunities presented by global growth companies,
allowing them to exchange best practices and address their common interests and
challenges," Schwab said.
He added it also presents an extraordinary opportunity to showcase China's
emerging multinationals.
(China Daily 09/09/2006 page1)
