Vice Finance Minister Zhu Guangyao addresses a press conference on September 2. Photo: Jia Xingpeng

China has allocated 100-billion yuan in structural adjustment funds for the steel and coal industries, making the country one of the first major economies to tackle excessive industrial capacity, said Chinese vice finance minister Zhu Guangyao on Sep. 2, two days before the G20 Hangzhou Summit opening.

Zhu, at a press conference on Sep. 2, said China has implemented the strongest measures to tackle industrial overcapacity, including enterprise mergers and reorganizations based on market rules or bankruptcy laws.

China is also promoting the use of nationwide bankruptcy courts, he added.

Zhu said the G20 Hangzhou Summit comes at a time when world economic recovery is slow and unbalanced. The world economy is full of uncertainties, such as Brexit, is increasingly divided by the develop world’s monetary policies, and is experiencing downward pressure.

He expressed his hope that the world can come together to spur economic growth.

“This is also why the world sets its eyes on Hangzhou and expects the summit to boost global economic growth and improve global financial market stability,” said Zhu.

Specifically, Zhu pointed out that one of the key focuses of this year’s summit will be international tax reform, especially on the coordination of policy on tax evasion, base erosion, and tax havens.

China announced that the G20 Hangzhou Summit will, for the first time in history, encourage the establishment of a new international tax system that is fair, just, inclusive, and orderly.

Zhu stressed that under China’s presidency, much discussion has focused on the use of taxes to support economic growth and increase government tax revenue.