To better appreciate the value of different civilizations, education's role is unique, he said.
To illustrate the urgency of developing education, the president quoted Napoleon Bonaparte's saying, "There are only two forces in the world, the sword and the spirit. In the long run, the sword will always be conquered by the spirit."
He also shared his views on the relationship between the Chinese Dream and Chinese civilization.
The Chinese people are striving to fulfill the Chinese Dream of great renewal of the Chinese nation, and as they pursue the dream they will encourage creative shifts and innovative development of Chinese civilization, he said.
This civilization and others in the world are all the fruit of human progress, Xi said.
"We need to inject new vitality into Chinese civilization by energizing all cultural elements that transcend time, space and national borders and that possess both perpetual appeal and current value," he said.
Ramzi Sanbar, a French businessman who listened to Xi's speech, said it was a very good summary of China's culture and soft power.
"The essence of the speech made for a good mix of the ancient and the new China," he said. "The most interesting parts were the ideas on the diversity of civilizations and that no one (civilization) is superior to the other."
Before making his speech, Xi met with Irina Bokova, director-general of UNESCO, on Thursday morning and spoke highly of the UN agency's role in advocating cultural diversity and gender equality.
To support UNESCO's education endeavors, China will offer 75 scholarships every year through the agency to sponsor teachers from African and other developing countries. The number of scholarships used to be 25 a year.
Also on Thursday, Xi's wife Peng Liyuan was named special UNESCO envoy for the promotion of young girls' and women's education.
Abhimanyu Singh, director and representative of the UNESCO Beijing Office, said it has conducted extensive cooperation with all parties in China.
"The UNESCO Beijing Office is also committed to contributing to UNESCO's mission in the region, addressing the social, environmental, economic and cultural dimensions of sustainable development since its establishment in 1984," Singh said.
France is the second leg of Xi's four-country European tour, which will take him to Germany on Friday.
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