G20 mem­bers ex­pected to rise above dif­fer­ences to shape mul­ti­lat­er­al­ism

Global Times US Edition - - FORUM - Page Edi­tor: wang­wen­[email protected]­al­times.com.cn

With the ap­proval of a China-ja­pan ETF (Ex­change Traded Fund) con­nect mech­a­nism on Mon­day, China has taken an­other step to open up its fi­nan­cial mar­kets to sup­port the build­ing of an open world econ­omy.

De­spite ris­ing pro­tec­tion­ism in the world, China has never fal­tered in open­ing up its econ­omy. On the con­trary, the coun­try has been con­sis­tently in­tro­duc­ing new mea­sures to give global in­vestors eas­ier ac­cess to the Chi­nese mar­ket.

In mid-june, the Shang­hai-lon­don Stock Con­nect pro­gram was of­fi­cially launched. On Mon­day, China’s A shares were in­cluded in the FTSE Global Eq­uity In­dex Se­ries as sched­uled.

All th­ese mea­sures dis­played China’s stance in sup­port of an open econ­omy, which adds cer­tain­ties to global eco­nomic growth and brings com­fort to those who fear that the world econ­omy might slip into re­ces­sion due to pro­tec­tion­ism.

At a routine press con­fer­ence ahead of the G20 sum­mit in Osaka, Ja­pan, For­eign Min­istry spokesper­son Geng Shuang said, “China hopes the sum­mit in Osaka will send a strong sig­nal of sup­port­ing mul­ti­lat­er­al­ism and op­pos­ing uni­lat­er­al­ism, sup­port­ing open­ness, in­clu­sive­ness and op­pos­ing pro­tec­tion­ism, sup­port­ing win-win co­op­er­a­tion and op­pos­ing bul­ly­ing.”

The G20 was set up in re­sponse to the 2008 global fi­nan­cial cri­sis. Its present core mis­sion is to es­tab­lish eco­nomic fun­da­men­tals for re­al­iz­ing sus­tain­able and in­clu­sive growth of the global econ­omy.

Right now, the world econ­omy is at a crit­i­cal stage. A re­port re­leased by the World Trade Or­ga­ni­za­tion showed trade re­stric­tions among G20 mem­bers con­tin­ued at his­toric high lev­els, as trade cov­er­age of new im­port-re­stric­tive mea­sures in­tro­duced from Oc­to­ber 2018 to May 2019 was more than 3.5 times the av­er­age since May 2012.

Mean­while, in­ter­na­tional in­vest­ment shrank heav­ily last year, with global flows of for­eign di­rect in­vest­ment fall­ing by 13 per­cent to $1.3 tril­lion, the low­est since the 2008 global fi­nan­cial cri­sis, said the UN Con­fer­ence on Trade and De­vel­op­ment in a re­port.

It is high time G20 mem­bers, which ac­count for more than 80 per­cent of the global GDP, took re­spon­si­bil­ity to re­sist eco­nomic head­winds and pro­mote free trade and glob­al­iza­tion.

China sin­cerely hopes that G20 mem­bers can put aside prej­u­dice and an­i­mos­ity, strengthen pol­icy co­or­di­na­tion and push for­ward the rules-based mul­ti­lat­eral trad­ing sys­tem for the sake of the com­mon in­ter­ests of the in­ter­na­tional com­mu­nity.

Uni­lat­er­al­ism and pro­tec­tion­ism lead to nowhere but hold­ing back eco­nomic progress, as mar­ket sen­ti­ment has been frag­ile and cor­po­rate con­fi­dence low un­der volatile trade poli­cies.

To re­store con­fi­dence and strengthen re­silience of the world econ­omy, there is no bet­ter so­lu­tion than ce­ment­ing a con­sen­sus to de­velop an open world econ­omy. The ar­ti­cle is a com­men­tary of the Xin­hua News Agency. opin­[email protected]­al­times.com.cn

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