We need each other
BEIJING According to Li Keqiang Premier of the State Council of The People’s Republic of China we now live in a world of profound economic interdependence. Countries rely on each other’s markets. No country can singlehandedly provide all the resources and factors of innovation for producers, or offer all the needed goods and services to consumers. Nor can any country sustain its development in isolation from the global system of division of labor.
“Having said that, we need to acknowledge the lack of inclusiveness that has arisen in the course of economic globalization, such as inequality in opportunity, uneven benefit distribution and shocks to traditional industries and employment. For these issues, we need to make comprehensive and indepth analyses to find out the root causes and address them with targeted solutions. A problematic tendency we see right now is to simplistically make a scapegoat of economic globalization, which instead of helping matters in any way, will only undercut the foundation of world economic and trade growth.
It is crucial that countries remain committed to the general direction of economic globalization, and advance trade and investment liberalization and facilitation. At the same time, we need to improve institutional arrangements to promote equal rights, equal opportunities, and fair rules for all, so as to better adapt to and guide economic globalization in the direction of mutually beneficial, balanced and inclusive development. At the national level, countries need to pursue inclusive growth by improving the income distribution system, and deliver the benefits of growth more widely in their societies. The international community needs to increase assistance to the less developed countries, and support their deeper integration into the global industrial, innovation and value chains, so that they can grow their economy, create more jobs, and improve their people’s well-being.
Risks facing the world economy have increased to a certain extent, from a slow-down in international trade and investment, intensified negative impact of protectionism, to greater uncertainties and destabilizing factors. In response, various countries have taken proactive measures, such as cutting interest rates or signaling more accommodative policies. Human society makes progress by drawing on past experience and lessons. Years ago, we jointly tackled the international financial crisis by coordinating our policies and achieved notable results. We should earnestly learn from and carry on this experience. At the same time, the mediumand longterm effects of the quantitative easing and excessive money supply adopted in the wake of the crisis should be evaluated, and the pros and cons of such policies should be weighed carefully.
In the face of the downward trends in the world economy, countries need to renew the spirit of partnership as we are all passengers in the same boat. We need to maintain equal consultations, seek common ground while shelving or managing our differences, and forge synergies. The rules-based, WTOcentered multilateral trading system is the bedrock of economic globalization and free trade, and an important underpinning for steady global growth. Its authority and efficacy should be respected and safeguarded. China supports necessary reforms of the WTO. Nevertheless, its fundamental principles such as free trade should be upheld, and the WTO should not waver in fulfilling its mission of opening markets and promoting development and in moving in the important direction of narrowing the development gap and NorthSouth divide.
The Belt and Road Initiative proposed by China aims to promote inclusive development by encouraging the integration of more countries and regions into economic globalization. It has created new opportunities for countries and businesses around the world. We welcome the active participation of all parties in order to achieve interconnected and winwin development through mutually beneficial cooperation”.