China con­tin­ues to con­trib­ute to global growth

... the G20 has to re­form the global fi­nan­cial sys­tem, help pro­mote the free flow of trade and in­vest­ment, while keep­ing the real con­di­tions of dif­fer­ent economies in mind, to pro­pel global eco­nomic growth.

China Daily (USA) - - VIEWS - The au­thor is deputy chief of China Daily Euro­pean Bureau fu­jing@chi­nadaily.com.cn

With the G20 Lead­ers’ Sum­mit to be held in­Hangzhou, East China’s Zhe­jiang province, on Sept 4-5, the city has come un­der the spot­light of the world me­dia. But since the G20 sum­mit is be­ing held in the shadow of the global eco­nomic down­turn, will the an­nual meet­ing lead the global gov­er­nance and global eco­nomic re­cov­ery? How­can China as the host bet­ter play the role of a re­spon­si­ble power?

The G20 mem­bers agree that eco­nomic co­op­er­a­tion, in “the spirit of win-win part­ner­ship”, is the way for­ward, and their shared aim is to build “an in­no­va­tive, in­vig­o­rated, in­ter­con­nected and in­clu­sive global econ­omy”.

Given these facts, the G20 needs to find in­no­va­tive ways to boost global eco­nomic growth, and re­form the global eco­nomic and fi­nan­cial gov­er­nance sys­tem to make it more re­silient to pos­si­ble risks and give de­vel­op­ing coun­tries greater say. Be­sides, the eco­nomic bloc should also pro­pel in­ter­na­tional trade and in­vest­ment to sup­port sus­tain­able growth. The com­mon pur­pose of its mem­bers should be to re­al­ize theUNSus­tain­able De­vel­op­ment Goals by 2030 through win-win part­ner­ship.

Af­ter sev­eral con­fer­ences of co­or­di­na­tors, as well as fre­quent dis­cus­sions, the economies par­tic­i­pat­ing in theHangzhou G20 sum­mit have al­ready ac­cepted this fact. That’s why China is con­fi­dent the G20 sum­mit will ful­fill its ob­jec­tives. As the host coun­try and chair of G20 this year, China will con­tinue to con­trib­ute to global eco­nomic growth.

For the G20 to play its im­por­tant role in global gov­er­nance, it has to un­der­stand the real eco­nomic dif­fi­cul­ties the world faces to­day. The G20 was born in 1999, when de­vel­op­ing coun­tries were on the rise and play­ing a greater role in the global eco­nomic growth. And over the past 17 years, the bloc has served as a very im­por­tant plat­form for dia­logue be­tween de­vel­oped coun­tries and emerging mar­ket economies.

Facts show the G20 is a plat­form for de­vel­oped and de­vel­op­ing coun­tries to dis­cuss eco­nomic is­sues of global im­por­tance, for which its mem­bers have to re­spect each other’s core in­ter­ests and iden­tify ar­eas of great­est com­mon in­ter­ests for co­op­er­a­tion.

Their largest com­mon in­ter­est, how­ever, lies in tak­ing the glob­al­iza­tion process for­ward. Through glob­al­iza­tion, coun­tries can share more com­mon in­ter­ests and eco­nomic gains. Since glob­al­iza­tion re­quires free trade and in­vest­ment, it fa­cil­i­tates fairer dis­tri­bu­tion of re­sources among economies and pro­motes eq­ui­table in­ter­na­tional rules.

Both emerging mar­ket economies and de­vel­oped coun­tries ben­e­fit from glob­al­iza­tion. The United States has been push­ing for­ward it­sWash­ing­ton Con­sen­sus, but be­cause it pro­motes the free flow of com­modi­ties and cap­i­tal with­out con­sid­er­ing the ac­tual con­di­tions of other coun­tries, its poli­cies have hurt many economies.

One of the US pres­i­den­tial can­di­dates has blamed eco­nomic glob­al­iza­tion for the re­ces­sion in the US, claim­ing Chi­nese work­ers have “taken away” jobs from their Amer­i­can coun­ter­parts. This is base­less be­cause trade pro­tec­tion­ism is not con­ducive to global eco­nomic growth, so the G20 has to take a stance that op­poses the US pres­i­den­tial can­di­date’s pre­pos­ter­ous claims. To be­gin with, the G20 has to re­form the global fi­nan­cial sys­tem, help pro­mote the free flow of trade and in­vest­ment, while keep­ing the real con­di­tions of dif­fer­ent economies in mind, to pro­pel global eco­nomic growth.

China’s Belt and Road Ini­tia­tive is an ex­cel­lent ex­am­ple of how the global fi­nan­cial mech­a­nism can be re­formed. The ini­tia­tive is con­ducive to the trend of the times, ad­vo­cates equal­ity and win-win co­op­er­a­tion in in­ter­na­tional mat­ters, and helps de­vel­op­ing coun­tries and de­vel­oped coun­tries to bet­ter in­ter­act with each other.

As the host of the G20 sum­mit, China will do its best to deepen co­or­di­na­tion and co­op­er­a­tion among the bloc’s mem­bers. Since this year also marks the be­gin­ning of China’s 13th Five-Year Plan pe­riod (2016-20), as well as the op­er­a­tions of the Asian In­fra­struc­ture In­vest­ment Bank and the Belt and Road Ini­tia­tive, China will do ev­ery­thing in its power to make the G20 sum­mit a grand suc­cess and lead the world out of the eco­nomic cri­sis. The au­thor is ex­ec­u­tive di­rec­tor of the Strat­egy Re­search Cen­ter of China In­ter­na­tional Stud­ies Re­search Fund.

As global lead­ers pre­pare to gather in pic­turesque Hangzhou in East China’s Zhe­jiang province to at­tend this year’s G20 Lead­ers’ Sum­mit, and the Ger­man port city of Ham­burg pre­pares to play host to the next G20 sum­mit, they can learn a great deal from a rapidly grow­ing econ­omy and an in­dus­tri­al­ized gi­ant about how to im­prove their re­spec­tive economies.

But to lead the world econ­omy out of the on­go­ing down­turn, world lead­ers have to think “be­yond G20”, which means they have to fo­cus on more than macroe­co­nomic pol­icy co­or­di­na­tion and make earnest ef­forts to re­form the global fi­nan­cial regime. For ex­am­ple, they should seek to im­prove the liveli­hoods of peo­ple across the world and in­crease their re­spec­tive coun­tries’ com­pet­i­tive­ness.

The mis­sion of the G20 sum­mit is to in­ject newlife into the global econ­omy, some­thing which China andGer­many, as G20 sum­mit hosts in 2016 and 2017, can re­viewto im­prove their own com­pet­i­tive­ness.

The fail­ure of theUnited States to reg­u­late Wall Street, es­pe­cially stock traders’ greed— which led to the col­lapse of Lehman Broth­ers in Septem­ber 2008 and sub­se­quently the global fi­nan­cial cri­sis— was crit­i­cized at the G20 sum­mit in­Wash­ing­ton in 2008. While all coun­tries made ef­forts to plug the loop­holes in the fi­nan­cial and bank­ing sec­tors and reg­u­late their fis­cal poli­cies, Ger­many shone the most for keep­ing its real econ­omy thriv­ing, the job­less rate low, and re­main­ing a strong re­gional power de­spite be­ing a part of the Euro­peanUnion.

The mis­sion of the G20 sum­mit is to in­ject new life into the global econ­omy ...

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