The world awaits G20, while G20 awaits China

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The world awaits G20, while G20 awaits China

(People's Daily Online) 08:39, August 26, 2013

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After five years of preparation and adjustment, the 8th G20 Summit will be held on Sept. 5 in St. Petersburg, Russia, against an international backdrop of a weak economic recovery and increasing disputes.

In June the World Bank issued its World Economic Outlook, which reduced expectations for global economic growth in 2013 from 2.4 percent to 2.2 percent. The US economy is growing slowly, but there has been little improvement in employment figures. Europe’s prospects look little different. In Japan, although the economy is improving under Abe’s economic stimulus policy, the long-term economic growth outlook is not optimistic. Economic development is also slowing in emerging market countries like China. Against this background the international community is waiting expectantly to see whether the G20 Summit, serving as an international multilateral platform of global economic governance, can succeed in stimulating international economic growth.

Affected by the gloomy economy outlook, economic disputes have increased over the past year. In terms of economic policy there are concerns about the quantitative easing and economic stimulus program launched by Japanese Prime Minister Shinzo Abe, dubbed "Abenomics". In terms of investment there are disputes between China, the US and Europe about the photovoltaic industry. In terms of resource exploitation, there are disputes about nuclear energy and territorial issues. Cyber security has also raised its head recently as a major issue in the international community. These disputes pose new challenges for international governance, while the anarchic nature of the international community increases the importance of the G20 Summit as a platform for communication.

At present the G20 represents a prototype, but whether it can develop into a genuine mechanism of common global governance depends on whether it can achieve success across a range of issues: first, whether China and the U.S. can develop mutual political trust and make a joint contribution to building a global economic order; second, whether the G20 countries can find points of common interest and balance, while reserving differences; third, whether G20 can improve efficient cooperation and establish stronger supervision.

As a responsible emerging power, China is making its contribution to building a fairer and more rational order. It has made cooperation with G20 and other global economic governance structures an integral part of its 12th Five Year Plan. It achieves its sustainable and balanced development by implementing progressive reforms. It also participates in all kinds of cooperation systems under the G20 framework, while playing an active role in building preventive measures against global crisis. Finally, it is also committed to refining international regulations to fight against trade protectionism, to promote fairness in international organizations, and to emphasize the interests of developing countries.

China considers the G20 Summit to be an important platform for coordinating the contrasting positions of developed economies and developing ones. As is normally the case, G20 will hold brief meetings before the Summit to coordinate positions and discuss cooperation. This mechanism will help strengthen the influence of emerging economies in the G20 mechanism, and their ability to make their voices heard.

Edited and Translated by Yao Chun, People's Daily Online

Read the Chinese version: 世界期待G20，G20期待中国, source: People's Daily Overseas Edition