Taking center Stage
on avoiding conflict than on providing a basis for moving forward. Xi has recognized that this will no longer do, and what is more, is prepared to make his point publicly. The state of the global economy requires more than warm words, mutual flattery and baseless optimism.
The Chinese leader spoke of “a crucial juncture” in the world’s affairs. He addressed the issues of persistently slack demand, slowdowns in international trade and investment, and dangerously uncontrollable fluctuations in financial markets. And, there are no “magic bullets” in sight. “Growth drivers from the previous generation of technological progress are gradually losing strength, while a new round of technological and industrial development has yet to gain momentum,” he said. Of course this view fits perfectly with China’s domestic economic program, and it’s likely that Xi was offering the Chinese approach as a blueprint that other economies might wish to follow - and why not, seeing that China is managing the decline in growth better than most?
So, what did Xi’s proposal for G20 members look like? In the usual, wellordered Chinese fashion, he set it out in the form of five key points:
1) The macroeconomic policies of G20 members should be more deeply and strongly coordinated, jointly pursuing growth and financial stability (rather than trying to steal a march on each other by seeking short-term advantages).
2) G20 members should prioritize innovation as a driver of growth, collaborating closely to develop mutually beneficial growth engines.
3) Member economies should cooperate to improve international economic governance and ensure proper mutual compliance arrangements.
4) All major economic powers should work toward a more open world economy and make concerted efforts to promote the liberalization and facilitation of trade and investment. (This runs parallel to China’s focus on trading infrastructure, by means of the Silk Road Economic Belt and 21st-century Maritime Road Initiative, and recognizes that there is still a way to go in the field of trade finance.)
5) All parties should work toward the implementation of the 2030 Agenda for Sustainable Development, which aims to ensure that growth is directed toward positive social and environmental development.
This last point is particularly significant in the light of China’s decision, in company with the United States, to