G20 meeting considers steps to prevent capital flight, restore investor confidence

Though charting a course for global economic recovery and bolstering investor sentiment would be high on the agenda of global leaders during the Group of Twenty summit in St Petersburg, Russia, attention would also be drawn on how China, the world's second largest economy, is combating slower growth.

The meeting, which comes at a time when the currencies of all participating nations, barring China, have taken a major hit, will also be an important platform for Chinese President Xi Jinping to reassure the global community that the economic climate and growth pipeline still remains robust in China, experts say.

"China is way ahead of other economies in competitiveness and productivity, and still has the best credentials for sustained long-term growth," says Gregory Chin, associate professor of political economics at York University in Canada.

Xi, is expected to reassure global leaders that the recent growth blips are part of an industrial transformation and not a sign of waning confidence. He will also use the opportunity to assure global leaders that China will come out with more policies to facilitate long-term growth.

At the same time, Xi, will also be an active participant in the global deliberations aimed at restoring investor confidence and making the current international trade, investment and financial system more fair, open and inclusive. The discussions are also expected to touch upon the plans by the US Federal Reserve to wind down its quantitative easing program and its resultant impact on other nations.

Chin, who has tracked several G20 summits in the past, says that President Xi will bring a "new spirit of boldness" to the meeting.

"The challenging world conditions and even tensions within the Asian region are prompting the Chinese leadership to take bold, careful and calculated global measures," says Chin, a Chinese-Canadian scholar who specializes in evolving global governance and China's role. "I expect this new spirit of boldness to continue at the G20 level also."

Chin says that Xi has been at the forefront of several recent important global engagements like the recent US-China Strategic and Economic Dialogue. "The close interaction shared by the two presidents during that meeting is an example of the new thinking in Chinese foreign policy. State Councilor Yang Jiechi's recent remarks about the need for a "new diplomacy" for China also highlights the new boldness," he says.

Based on his observations, Chin expects Xi to focus on encouraging growth in the world economy, and also on securing financial stability, international banking and other related financial reforms to enhance the role of emerging economies in the system.