Fi­nan­cial lead­ers ex­press faith in China

China Daily European Weekly - - China News - By HU YONGQI huy­ongqi@chi­

The lead­ers of key in­ter­na­tional or­ga­ni­za­tions, in­clud­ing the World Bank, ex­pressed con­fi­dence in China’s eco­nomic re­struc­tur­ing and growth prospects on Sept 12 as the coun­try pur­sues in­no­va­tion-driven and sus­tain­able de­vel­op­ment.

They spoke dur­ing a round­table di­a­logue in Bei­jing hosted by Pre­mier Li Ke­qiang.

The di­a­logue, known as the “1 plus 6” round­table, is the sec­ond such event in which Li has hosted dis­cus­sions with such fi­nan­cial heavy­weights as World Bank Group President Jim Yong Kim, In­ter­na­tional Mone­tary Fund Man­ag­ing Di­rec­tor Chris­tine La­garde and World Trade Or­ga­ni­za­tion Di­rec­tor-Gen­eral Roberto Azevedo.

The three oth­ers were In­ter­na­tional Labour Or­ga­ni­za­tion Di­rec­tor-Gen­eral Guy Ryder, Or­ga­ni­za­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment Sec­re­tary-Gen­eral An­gel Gur­ria and G20 Fi­nan­cial Sta­bil­ity Board Chair­man Mark Car­ney, who is also gover­nor of the Bank of Eng­land.

The lead­ers fo­cused on top­ics such as the global econ­omy, mul­ti­lat­eral trade, sus­tain­able de­vel­op­ment and China’s eco­nomic re­struc­tur­ing.

In the first half of this year, China’s GDP grew by 6.9 per­cent, which was within the rea­son­able range set in the an­nual Gov­ern­ment Work Re­port. On av­er­age, 16,000 new en­ter­prises were reg­is­tered daily.

Over the past few years, China has been com­mit­ted to re­struc­tur­ing its econ­omy, Li said dur­ing the di­a­logue. And it has sta­bi­lized, con­tribut­ing 30 per­cent of the world’s eco­nomic growth.

More than 13 mil­lion new jobs were cre­ated in ur­ban ar­eas in each of the past four years. From Jan­uary to Au­gust, 800,000 more jobs were gen­er­ated than in the same pe­riod last year, he said.

Do­mes­tic con­sump­tion has be­come the most cru­cial driver now that the ser­vice in­dus­try gen­er­ates the largest amount of added value, tax­a­tion rev­enues and em­ploy­ment op­por­tu­ni­ties, the pre­mier said, adding that the coun­try’s eco­nomic growth is now pro­pelled by con­sump­tion, in­vest­ment and ex­ports in a more bal­anced way.

The di­a­logue is im­por­tant, Li said, be­cause it shows that China up­holds the prin­ci­ple of mul­ti­lat­er­al­ism and is strength­en­ing its com­mu­ni­ca­tion with the in­ter­na­tional com­mu­nity as a re­spon­si­ble ma­jor coun­try.

He called for con­tin­u­ing struc­tural re­forms, tak­ing op­por­tu­ni­ties cre­ated by a new era of tech­no­log­i­cal ad­vances and in­dus­trial trans­for­ma­tion. Sys­tem­atic in­no­va­tions should be made to re­duce in­sti­tu­tional costs and boost busi­ness star­tups and cre­ativ­ity, he said.

Li noted that the world econ­omy is re­cov­er­ing but also fac­ing a large num­ber of un­cer­tain­ties. Mul­ti­lat­eral trade mech­a­nisms based on free trade should be safe­guarded, he said, adding that fur­ther open­ness is needed to solve trade im­bal­ances and achieve mu­tu­ally ben­e­fi­cial out­comes. He called on all other coun­tries to de­velop their own com­par­a­tive ad­van­tages in a way that shares global eco­nomic de­vel­op­ment.

“We would like to en­hance frank ex­changes with the in­ter­na­tional com­mu­nity to ef­fec­tively com­mu­ni­cate in pol­icy-mak­ing and guide ex­pec­ta­tions, which is to fur­ther the con­tin­ued re­cov­ery of the global econ­omy,” Li said.

The six or­ga­ni­za­tion heads agreed that China has made great leaps in in­creas­ing growth, re­struc­tur­ing and guard­ing against risks, while it has boosted mar­ket vi­tal­ity with mass en­trepreneur­ship and in­no­va­tion and im­proved the busi­ness en­vi­ron­ment.

They also said China has at­tached great im­por­tance to, and sup­ported, mul­ti­lat­er­al­ism and free trade, and its sta­bi­liz­ing econ­omy pro­vides strength to shore up the re­cov­ery and growth of the world econ­omy.

La­garde said at a post-di­a­logue news con­fer­ence that she has ob­served the re­bal­anc­ing of the Chi­nese econ­omy from in­vest­ment to con­sump­tion and from in­dus­try to ser­vices, as well as its mov­ing from me­chan­i­cal to dig­i­tal plat­forms faster than any­one else.

Azevedo said China’s com­mit­ment to ac­cel­er­at­ing re­form and in­creased fo­cus on sus­tain­abil­ity and qual­ity is wel­come and will be sup­ported.

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