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We introduce Yao, an extensible, efficient open-source framework for quantum algorithm design. Yao features generic and differentiable programming of quantum circuits. It achieves state-of-the-art performance in simulating small to intermediate-sized quantum circuits that are relevant to near-term applications. We introduce the design principles and critical techniques behind Yao. These include the quantum block intermediate representation of quantum circuits, a builtin automatic differentiation engine optimized for reversible computing, and batched quantum registers with GPU acceleration. The extensibility and efficiency of Yao help boost innovation in quantum algorithm design.