The "China Development Forum 2015" is being held today in Beijing. Joe Kaeser, President and CEO of Siemens AG, pointed out in his keynote speech that the Chinese version of Industry 4.0 has already emerged. Under the new normal, China's structural reforms should better align resources with the needs of modern industries and the China Industry 4.0 strategy.

　　The following is the transcript of the speech:

　　Respected Director Li Wei, colleagues, ladies and gentlemen, Premier Li mentioned that China is now on a slowing train, but in fact, the speed is still very high. No matter what China does, the pace remains very fast. This may be what he was thinking of when he used the high-speed train metaphor. We believe this new normal will bring some changes, which are structural changes. So the question we need to ask is: what form will these changes take? I think changes can come from quantity and quality, possibly involving significant transformations, potentially creating more diverse job opportunities, possibly moving from fragmented policies to a more coordinated national strategy, and also emphasizing the construction of a globally open innovation system. Therefore, the question to ask is: what are the prerequisites, what tasks are needed, and what costs must be paid to adapt to the new normal?

　　First, we believe there must be reliable, sustainable, and affordable technologies that can modernize some oil and gas pipelines and contribute to energy modernization. At the same time, adjustments must be made between fossil energy and renewable resources. I know China is making efforts in this area. Of course, ambition is one thing, but how to implement it at a reasonable pace to make the system smarter and more modernized is key. Therefore, very modern and flexible infrastructure is needed, along with international cooperation. Additionally, we need international networks, including trade and logistics networks. We know China and some major trade partners have signed a series of free trade agreements, which is a significant achievement. Also, the "Belt and Road" strategy is a milestone for China's development entering the new normal. We are certainly very interested in how to help implement this strategy and build a modern Silk Road.

　　Furthermore, we discussed the establishment of the Asian Infrastructure Investment Bank and how to use this mechanism to help finance infrastructure projects in China and Asia. Additionally, there is the development of high-end manufacturing. We now need to increase our added value in the value chain while developing manufacturing and services together. We believe this is related to Germany's Industry 4.0 strategy. Our Industry 4.0 strategy is about introducing some information technologies into manufacturing. In fact, we already have an Industry 4.0 demonstration factory in Germany, which uses very advanced technology, with over 15 million interconnected devices in the factory. Also, we have a factory in Chengdu.

　　Therefore, China's Industry 4.0 version has already appeared and is happening. Of course, we need to increase investment in training and education, such as vocational education, as well as the cultivation of soft skills and engineering capabilities. This work cannot be neglected because the new normal also involves reform, and a major part of reform is structural reform. Structural reform means better adapting resources to the needs of modern industries and meeting the requirements of the Industry 4.0 strategy. We are not short-sighted in China; we have been operating here for a long time and hope to continue contributing to China's economy for the next 30 years. Thank you!