Klaus Schwab, founder and executive chairman of the World Economic Forum, said UK-Chinatrade relations have been good and will not change substantially because of the so-called Brexit.He was interviewed on Saturday ahead of the 10th Summer Davos Forum. [Photo/China Daily]

British vote creates some big challenges, but 'we will find new solutions to respond'

Global economic fundamentals are sound and the world will find new solutions to deal withthe unexpected British vote to leave the European Union, said Klaus Schwab, founder andexecutive chairman of the World Economic Forum.

"The fundamentals are good, with the world economic growth rate at 2.5 percent to 3 percent,and with China's at more than 6 percent," Schwab said on the eve of the 10th Summer DavosForum, which started in Tianjin on Sunday.

Some 1,700 politicians, entrepreneurs and scholars from around the world are attending thethree-day conference, officially known as the World Economic Forum Annual Meeting of theNew Champions.

"What happened two days ago in Great Britain is one challenge more for the global economy,but I believe we will find new solutions to respond to it," Schwab said.

Britons voted 52 to 48 percent on Thursday in favor of ending their country's 43-yearmembership in the 28-nation bloc.

Schwab said UK-China trade relations have been good and will not change substantiallybecause of the so-called Brexit.

"Maybe the UK for a moment will be a big uncertainty, but I hope UK-China relations willcontinue to be intensive and friendly," he said.

"The Fourth Industrial Revolution and Its Transformational Impact" is the theme of this year'sforum.

The concept that Schwab has introduced is characterized by speedy technological innovationand the digital transformations of many industries.

"Before coming here I visited Shenzhen and Guangzhou, and I saw China is playing a big rolein some areas in the Fourth Industrial Revolution, such as drones," he said. "I am optimisticabout the capability of China to use the opportunity of the Fourth Industrial Revolution."

He said the main challenge for China is how to restructure the old economy, such as movingto high value-added products from low value-added ones.

Schwab said China's 13th Five-Year Plan (2016-20), which is based on transformation andupgrading, provides guidance to enter the new industrial revolution.

"It is essential to recognize and learn to cope with new technologies in the Fourth IndustrialRevolution, which will create both opportunities and risks," said Jing Ulrich, vice-chairmain forAsia Pacific at JPMorgan Chase.

She said that while businesses need to come up with new strategies to maintain theircompetitive edge, individuals have to acquire new skills and knowledge to continue beingproductive members of the labor force.

Ultimately, the winners will be those who are able to adapt the quickest and utilize technologyto its fullest potential, Ulrich said.