On the afternoon of Sep. 27, 2008, Premier Wen Jiabao of the State Council attended the opening ceremony of Summer Davos forum and the meeting with entrepreneurs and answered the questions from by Chairman Klaus Schwab of the World Economic Forum and entrepreneurs. The full text of questions and answers is as follows:

Q: China has a comprehensive system of economic policies and there are also many policies for the business community. What suggestions do you have for business leaders present here? How can they do better?

A: The ultimate goal of China’s economic policies is to ensure the long-term, fast yet steady economic development, which is not only necessary for China, but also beneficial to the world. To this end, China will unswervingly follow the path of reform and opening up and in the meantime adopt flexible and prudent macro-economic policies to address the problems and contradictions that arise amidst the volatile financial and economic situation around the world. We have confidence in China’s economic development. Enterprises are main players in the economy and I have two hopes for entrepreneurs. First, to keep innovating. To be a leader, a leading enterprise or a leading economy, one has to keep innovating, or there will no way out if one keeps following others’ path. Second, to stick to moral values. The blood of morality should flow in the body of every entrepreneur. Every enterprise should undertake social responsibilities. An enterprise operating by laws and following moral values is the one needed by the society.

We welcome enterprises from different parts of the world to make investment in China. China will create an impartial competition environment and a sound legal environment. We hope that you can also bring new technologies to China along with your investment. This will benefit your development and our cooperation as well.

Q: How do you think we should cope with the current economic crisis in the world?

A: The greatest challenge facing the international economy and finance is that the sub-prime mortgage crisis has affected some financial enterprises, even the physical economy, which resulted in the slowdown of global economy. The following three points are the most important elements in coping with the current crisis. First, countries should strengthen cooperation. The countries concerned should take active countermeasures. Only by working together, can we respond strongly to the crisis. Second, when the financial and economic crisis sets in, economists and entrepreneurs should have confidence. The people should have confidence. Political leaders should have confidence. Their confidence is particularly important. At the time of crisis, confidence is more important than gold and currency. Third, if China maintains a strong, steady and fast economic growth momentum and does not experience sharp rise and fall, it would be the biggest contribution to the global economy.

Q: As you mentioned in your speech, you experienced many challenges in your life and China’s economy also saw many challenges, such as snow disaster, earthquake and other natural disasters. The leadership and the resolve you showed in face of such challenges are really adorable and admirable. Now the world is facing a financial crisis and China’s economy is facing high inflation and global economic slowdown. How do you think we should cope with the current challenge?

A: This year is really an extraordinary year for China. It is both a happy and sad year. It is no exaggeration to say that it is a year of great happiness and great sadness. This is a tough challenge to both the Chinese people and government. In face of disasters and difficulties, what’s important for a leader is to brave hardship and never back off and be capable of taking resolute measures in a timely manner. In front of disasters, the Chinese nation did demonstrate their brave, courageous, and fortitudinous spirit. What they lose in disasters will always be compensated by what they gain from progress.

Recently, we encountered two problems. The first problem is the financial and economic turbulence. We must strike a balance point among economic growth, employment, and inflation. We must find ways to address the uncoordinated and unsustainable economic development and promote economic development in an orderly manner. We must pay attention to energy-saving and environmental protection so as to improve our ability to deal with population, resource and environment. I always remember one sentence: never avoid difficult tasks and when you know it is difficult, it may be less difficult. So long as we develop proper policies and get the people united, we can surely overcome this difficulty. The second problem we face is the recent milk powder incident, which on one hand showed that there were still many problems with the supervision of production process, for which the government is accountable and which on other hand showed that the country should pay attention to the building of business, professional and social morality. To resolve these problems, we should start from three aspects. First, we should have a thorough investigation of the incident and never let it pass. We should let this incident play an alert role across China. Second, we should establish and improve the supervision and inspection system from all aspects. Third, the whole society should set good moral values. This requires a longer period of time. Moral building must start from education and indeed children's education. We will put forward a plan for the rapid revitalization of the dairy industry. We should make not only our dairy products and food but also the made-in-China products reputed products trusted by the people throughout China and across the world.

Yesterday, I was deeply moved when I saw on television Mr. Mandelson drinking a glass of Chinese milk to show his confidence in Chinese products. Because he saw not only the immediate present but also the future to come. We discovered the problem and we did cover it up. We looked at it squarely and honestly and took courageous move to resolve the issue. We will not let the entrepreneurs here disappointed and we will not let the Chinese people as well as the people of the world disappointed.

Q: China achieved phenomenal success in economic development. I would like to know, when China will be able to improve the export to a new level and through what means? When can China export its own brand of merchandise and make greater progress in terms of quality and innovation?

A: China's export grew rapidly, but as you say, we do not have our own brands, in particular our own intellectual property rights. The current competition in the world boils down to the competition on intellectual property rights. I believe that the Chinese people are still smart. As long as our polices are on the right track, so long as we create a free and fair competition environment, and so long as we bring the wisdom of the people into play, the quality of our export products will improve and our own brands and intellectual property rights will increase, but this is an arduous process.

Q: In which areas can China take effective measures to ensure stable and rapid economic development?

A: China has good conditions to maintain stable and rapid economic development. First, China has a big domestic market. In a volatile world economy, we still have a lot of room for maneuver. Second, we must base our economic development on the expansion of domestic demand, especially consumption demand. We have sufficient capitals. The savings of the entire society stood at RMB46 trillion, among which household savings exceeded RMB16 trillion. Third, we have rich and constantly-improving human resources. Therefore I have the confidence in the sustained development of China.

Q: The recent financial and economic problems brought about a series of other problems. We need the joint efforts of the international community as a whole. We need a strong global leadership role to deal with challenges facing the international community and mankind. The role of the United States is weakening. Will China come on the stage and take on the role of global leadership? Has China already prepared for that?

A: Realistically speaking, it’s beyond our abilities. China's economy has been growing in a steady and rapid manner for 30 years. To maintain stable and rapid development for the coming 20 years, we need to make greater efforts. First, a developing country like China must avoid big periodical fluctuations. Second, to make our development a comprehensive, coordinated, and sustainable process, we need to deal with climate change, save resources, and protect the environment. Third, the key is the people, their wisdom and their talent. To be a leader, catch up with or walk ahead of other countries, the Chinese people must brave innovation in institutions, sciences, technologies, enterprises, and products. Without innovation, nothing will sustain.

Q: You just mentioned that China hopes to adopt various measures to stabilize domestic economic growth. To achieve this, you spoke of the need to sincerely cooperate with each other. In addition to such cooperation, I think China should take the initiative to ensure stable and rapid economic development. What measures will China take the initiative to take?

A: You ask what measures we take the initiative to take. That is a question concerning our policy orientation. I think that it can be summed up in two words, "prudent and flexible". This is our macro-policy orientation. At this time, it is necessary to keep a close eye on the trend of global economic development and adopt flexible and prudent macroeconomic policies based on the actual situation in China. In fact, careful people can see that China is acting.