The G20 process has been a good trust-building exercise for China and the world.
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Experts are at a loss to explain the slowdown in global trade growth. As president of the G20 for 2016, China has an unprecedented opportunity to provide impetus to global development.
The G20 has become the key vehicle for implementing and promoting global economic governance.
The G-20 Summit will be held for the first time in China in 10 days.
“And I deeply appreciate to see on my last G20 summit as the secretary-general of the United Nations that we work together with a common aim”, he added with particular emphasis on the climate change.
Chinese news outlet Weiquanwang also reported that Wuxi rights activist Shen Aibin has been placed under a ten-day administrative detention by the local public security bureau and fined RMB$200 after leaving his residence to purchase food without permission. It is obvious that innovation will be the main driver in all sectors of future global economic growth.
And China is eager to display its commitment to global cooperation through the G20 at a time when it feels cornered by geopolitical and territorial conflicts in the Asia Pacific. “Other countries know China can be a leader in addressing the world’s economic problems”.
Formal membership of the G20 Summit, alongside increases in quotas and voting power within the International Monetary Fund and the World Bank, represent a significant elevation of China’s place in global economic governance.
Real power in global governance requires intellectual input into the worldwide financial and economic agenda, policies and rules – the effective exercise of “soft” power. China lags behind in the exercise of institutional soft power in this theatre.
Nowadays, Group of Twenty or G20 is the most important mechanism for solving global economic problems which unites the major developed and developing economies of the world, accounting for around 85 percent of world GDP and 75 percent of world trade.
The G20 summit, scheduled for September 4-5 in the eastern Chinese city of Hangzhou, comes at a time when the growth of global trade is lower than that of the global gross domestic product (GDP), which is “indeed rare”, said Zhang Yuyan, director of the Institute of World Economics and Politics of the Chinese Academy of Social Sciences. And that’s where China’s efforts have been heavily directed.
He noted that via structural reforms, China has shifted its economic driving force and improved the quality of its growth. “Meanwhile, the benefits of growth need to be shared more broadly within countries to promote inclusiveness”, the G20 ministers said in a joint communique.
In the area of financial reform China has also been proactive.
The G20 was created in 1999 by finance ministers and central bank governors of seven major industrial countries after the 1997 financial crisis as a platform to promote worldwide financial stability.
The summit’s agenda also includes discussions of issues contributing to long-term economic development, such as dealing with climate change and anti-corruption cooperation. In an era where global markets are increasingly hard to govern, no one can guarantee that these efforts through China’s presidency will bear fruit.
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More importantly, China has gained much experience in driving global governance through participating in various G20 engagement groups.
