G20 will help China ful­fill global du­ties

It is China that has boosted the con­fi­dence of economies with its Silk Road Eco­nomic Belt and 21st Cen­tury Mar­itime Silk Road, and the Asian In­fra­struc­ture In­vest­ment Bank.

China Daily (USA) - - VIEWS -

he G20 Lead­ers’ Sum­mit to be held in­Hangzhou, East China’s Zhe­jiang prov­ince, in Septem­ber has ac­quired spe­cial im­por­tance be­cause of the slug­gish global econ­omy. Given its rep­re­sen­ta­tional na­ture, mem­bers’ equal sta­tus and flex­i­ble ar­range­ment, the G20 is a very im­por­tant plat­form for global eco­nomic gov­er­nance. No won­der eco­nomic growth and global struc­tural re­form are key top­ics of the Hangzhou G20 sum­mit.

As the ro­tat­ing chair of the G20, China has made am­ple prepa­ra­tions for this year’s sum­mit, in­clud­ing ar­rang­ing three co­or­di­na­tors’ meet­ings, three con­fer­ences of fi­nance min­is­ters and cen­tral bank gover­nors, and mul­ti­ple min­is­te­rial-level meet­ings. These meet­ings have al­ready re­sulted in some agree­ments, which in­clude the 48 guid­ing prin­ci­ples and the struc­tural re­forms of nine main sec­tors, rang­ing from fa­cil­i­tat­ing open in­vest­ment and trade to pro­mot­ing in­no­va­tion. G20 states have also agreed to eval­u­ate the progress of re­form ev­ery two years ac­cord­ing to the stan­dards and prin­ci­ples. And these agree­ments will be sub­mit­ted to the sum­mit for fur­ther dis­cus­sions and sub­se­quent ap­proval.

About 30 ma­jor agree­ments are likely to be reached at the Hangzhou G20 sum­mit, mak­ing it one of the most fruit­ful meet­ings of the group and re­flect­ing the high ex­pec­ta­tions of the in­ter­na­tional com­mu­nity from China as the sum­mit host.

In­deed, the world ex­pects China to play a big­ger role in im­prov­ing global eco­nomic gov­er­nance, stim­u­lat­ing global re­cov­ery and bal­anc­ing the in­ter­ests of var­i­ous economies. Among the three ma­jor roles that China has to play, the most im­por­tant is its lead­er­ship in global eco­nomic gov­er­nance.

Since the be­gin­ning of the 21st cen­tury, tra­di­tional in­ter­na­tional eco­nomic gov­er­nance mech­a­nisms such as theWorld Trade Or­ga­ni­za­tion, In­ter­na­tion­alMone­tary Fund and theWorld Bank have found them­selves less ca­pa­ble of deal­ing with the emerg­ing prob­lems, let alone solv­ing them. It is China that has boosted the con­fi­dence of economies with its Silk Road Eco­nomic Belt and 21st Cen­tu­ryMar­itime Silk Road (or the Belt and Road Ini­tia­tive), and the Asian In­fra­struc­ture In­vest­ment Bank.

China has been widely praised for suc­cess­fully host­ing the 2008 Olympic Games in Bei­jing, 2010 World Expo in Shang­hai and the 2014 APEC Eco­nomic Lead­ers’ Meet­ing in Bei­jing. It has proved its abil­ity to play a lead­ing role in global fi­nan­cial gov­er­nance, too.

The sec­ond ma­jor role for China is to lead world eco­nomic growth, es­pe­cially be­cause the global econ­omy is still strug­gling to re­cover from the 2008 global fi­nan­cial cri­sis. The in­ter­na­tional com­mu­nity ex­pects China to use the sum­mit to strengthen the G20 in­vest­ment sys­tem, boost global trade, bet­ter co­or­di­nate in­vest­ment poli­cies and ac­cel­er­ate global eco­nomic re­cov­ery. The in­ter­na­tional com­mu­nity also ex­pects China to keep play­ing the role of the driver of world eco­nomic growth.

As the largest de­vel­op­ing coun­try, China also has a third role to play: act­ing as a bridge be­tween de­vel­op­ing and de­vel­oped coun­tries. The G20 evolved from G7 and G8, the so-called rich clubs, and has too many in­ter­ests to bal­ance: the in­ter­ests of de­vel­oped and de­vel­op­ing coun­tries, the in­ter­ests of the G20 and nonG20 economies, and those of coun­tries and in­ter­na­tional or­ga­ni­za­tions. And no coun­try can help it play that role bet­ter than China, be­cause de­spite be­ing the sec­ond-largest econ­omy it is still a de­vel­op­ing coun­try.

We are con­fi­dent that China will play these roles well, be­cause it has shown am­ple sin­cer­ity in the process and prepara­tory work for the G20 sum­mit. And we hope, with the joint ef­forts of China and other economies, the Hangzhou sum­mit will be­come the most fruit­ful and sig­nif­i­cant one in G20 his­tory. The au­thor is a re­searcher at the China Coun­cil for the Pro­mo­tion of In­ter­na­tional Trade.

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