The World Bank and the IMF have downgraded the world economic outlook. Against suchglobal economic uncertainties and the complexities within the G20 itself, China assumedthe responsibility and hosted a successful G20 Hangzhou Summit during its presidency.
The crux of the current sluggish world economic growth, on the one hand, lies in theabsence of determination among all of the countries to maintain sustained growth and onthe other hand, the low efficiency of the measures that some countries have adopted.
In the meantime, growth slowdown in global trade, less active investment and lastinginstability in the financial markets also aggravated the world economic recovery. The risksof another global or regional financial crisis still exist.
The G20 Summit played a major role in coping with international financial crisis when itwas first established. However, as the world economy gradually recovers, the execution ofthe G20 was considerably undermined due to disputes in interests among member states.
Though many documents were formulated within the G20 framework, many countriesfailed to comply with them. For example, the G20 has put forward multiple constructivesuggestions on opposing global trade protectionism, but some developed countries haveeven doubled their protectionist measures.
Under such complex background, China has proposed a series of initiatives on boostingthe vitality of the G20 and restoring its global economic governance function with aprimary purpose to maintain sustainable growth and reduce current risks.
Even though it is not the first time for the G20 to call on reforming international financialinstitutions, stimulating investment and advancing structural reform, Chinese proposalsenable effective cooperation among major economies.
While focusing on economic agendas, China also called for compromises on disputes. Iturged all G20 members to find solutions for current challenges, rather than fixing theirattention on the reasons. Instead of joining in the arguments over the effects of adoptedmonetary stimulus policies, China asked all members to focus on how to boost economicgrowth through structural reform, taxation policies and fiscal polices.
China also did extensive and in-depth research on supervising outcome implementationand management improvement and gave more saying to developed countries. UnderChina’s initiative, the G20 Hangzhou Summit has, for the first time, drafted an action planon implementing the UN 2030 Agenda for Sustainable Development, agreed to advance anearly ratification of the Paris Agreement and launched the G20 Initiative on SupportingIndustrialization of Africa and Least Developed Countries as well as the GlobalInfrastructure Connectivity Alliance Initiative, delivering tangible benefits to the people ofdeveloping countries.
Now that the Hangzhou Summit has drawn the curtain, time will prove the effectiveness ofChina’s proposals. Given the experience and results China has accumulated in severalmultilateral frameworks, people are quite confident of the implementation of thesuggestions at the G20 Hangzhou Summit.