China’s role key: Greenberg

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