China’s role key: Green­berg

China Daily (USA) - - G20 2016 CHINA - By WANG LINYAN in New York wan­glinyan@chi­nadai­lyusa. com

Tech­nol­ogy and in­no­va­tion can and will be a ma­jor source of new growth.”

The up­com­ing G20 Sum­mit should rec­og­nize China’s con­tri­bu­tion to global growth, said Mau­rice R. Green­berg, chair­man and CEO of Starr Com­pa­nies.

“The fact that China will hold the G20 Sum­mit demon­strates in it­self the im­por­tance of China to the global econ­omy,” said Green­berg, who is honorary vice-chair­man of the Coun­cil on For­eign Re­la­tions.

“I ex­pect the G20 Sum­mit to fo­cus a lot on the global econ­omy, and rec­og­nize China’s con­tri­bu­tion to global growth in trade, in­vest­ment and other eco­nomic ac­tiv­i­ties in the world to­day and in the fu­ture.”

With the sec­ond-largest econ­omy in the world and a pop­u­la­tion of 1.3 bil­lion, Green­berg said, the tremen­dous eco­nomic growth China has achieved since 1978 speaks for it­self.

China has con­trib­uted to more than one-third of world out­put growth from 2008 to 2015. China’s global out­bound in­vest­ment has soared in the first half of 2016. The US con­tin­ues to be one of the top re­cip­i­ents of Chi­nese cap­i­tal, with more than $18 bil­lion of FDI in the first six months of 2016, ac­cord­ing to the Rhodium Group.

China’s shift from an ex­port-driven to a con­sump­tion-driven econ­omy will be pos­i­tive over­all for the global econ­omy, the International Mone­tary Fund (IMF) said in an Au­gust re­port.

As the world econ­omy has re­mained frag­ile, Green­berg

Mau­rice Green­berg, CEO and chair­man of Starr Com­pa­nies

sees chal­lenges in the global eco­nomic out­look, par­tic­u­larly in terms of de­mand.

“Tech­nol­ogy and in­no­va­tion can and will be a ma­jor source of new growth around the world,” he said.

Com­pa­nies need to learn how to take ad­van­tage of new tech­nol­ogy, both in and out­side of China, to help spur growth, he said.

Start-ups pri­mar­ily driven by young peo­ple are mush­room­ing in many coun­tries and will over time achieve cus­tomer adop­tion and job cre­ation, he added.

“Not all these new busi­nesses will suc­ceed, but many will, giv­ing rise to a new gen­er­a­tion of com­pa­nies,” he said.

Tar­geted govern­ment Pr i n te d spend­ing, such as on in­fra­struc­ture, is still needed, and it is where gov­ern­ments must step up as the pri­mary fund­ing source.

Spe­cific to China, Green­berg sees it as im­per­a­tive for the coun­try to fo­cus on struc­tural con­ver­sion to­wards a con­sumer-driven econ­omy that will ac­count for 70-80 per­cent of GDP.

“That will cre­ate jobs and drive eco­nomic growth both in China and around the world,” he ex­plained. “Man­u­fac­tur­ing and ex­port will re­main im­por­tant, but un­likely drive growth. It is the con­sumer sec­tor and ser­vice in­dus­tries that will make a dif­fer­ence in China.”

Re­gard­ing China’s ac­tive par­tic­i­pa­tion in global gov­er­nance, Green­berg said it has been “en­cour­ag­ing” to see China’s lead­er­ship role in the Asian In­fra­struc­ture In­vest­ment Bank, as well as the New De­vel­op­ment Bank. “That’s con­struc­tive par­tic­i­pa­tion in global eco­nomic ac­tiv­i­ties ben­e­fit­ing ev­ery­one,” he said.

Mar­ket ac­cess and trans­parency will re­main crit­i­cal to for­eign in­vestors around the world; it is a prin­ci­ple of rec­i­proc­ity and a sign of be­ing a re­spon­si­ble stake­holder.

At a World Eco­nomic Fo­rum meet­ing in Tian­jin in June, the Chi­nese govern­ment high­lighted China’s open­ing up pol­icy and promised to make mar­ket ac­cess eas­ier for for­eign firms and build a fair busi­ness en­vi­ron­ment.

“Strik­ing a proper bal­ance be­tween do­mes­tic and international in­ter­ests is an im­por­tant test for China, and I am con­fi­dent that China is able and will­ing to achieve it,” Green­berg said. and di s t r i b u te d by P ressReader

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