G20 summit will look to long term

Updated: 2016-08-19 07:54

By Zhang Yunbi(China Daily Europe)

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Beijing ready to offer its ideas on global economy, puts green financing on agenda

When hosting the forthcoming 11th G20 Leaders Summit, China will offer its ideas on how to tackle the world's lingering economic problems and rising protectionism, experts say.

President Xi Jinping will deliver the keynote speech at the opening ceremony of the summit, to be held on Sept 4 and 5 in Hangzhou, Zhejiang province, Foreign Ministry spokesman Lu Kang confirmed on Aug 15.

Since the last summit, in November in Antalya, Turkey, new uncertainties about the world economy have emerged, including Britain's decision to exit the European Union.

In its most recent forecast, the International Monetary Fund lowered this year's global economic growth target to 2.9 percent from 3.1 percent, and this could be the second year in a row with global growth of less than 3 percent, Xinhua News Agency reported.

Vice-Minister of Foreign Affairs Li Baodong says it is hoped that the G20, which evolved into a premier leaders' forum in 2008 amid a major global financial crisis, will shift from a focus on addressing crises to "a governance mechanism with long-lasting effect".

When asked if China will avoid highlighting the South China Sea issue, Li says the top concern of the summit will be the growth of global trade and investment and that all parties should "stay concentrated and focus on the economy".

G20 summit will look to long term

Although many leaders have proposed bilateral meetings with China on the summit sidelines, the schedule will be packed and Beijing is communicating with relevant parties regarding such meetings, Li adds.

Jia Jinjing, an expert on macroeconomic studies at Renmin University of China's Chongyang Institute for Financial Studies, says the Hangzhou summit could be a turning point during which the G20 mission will shift to long-lasting governance, as more minister-level meetings have been included to expand the G20's role in navigating global growth.

"The summit will see China offering solutions in addition to its contributions made to the global economy," Jia adds.

Xu Hongcai, an economist with the China Center for International Economic Exchanges, says G20 members should boost their coordination on monetary policies, as "there is a serious differentiation among the policies of the major economies in the world".

Yi Gang, a vice-governor of the People's Bank of China, also told a news conference that China has introduced "green finance" as a G20 agenda topic for Hangzhou, with a study group established to report on green financing at the summit.

According to the Organization for Economic Cooperation and Development, green financing and investment involve "technologies, infrastructure and companies that will be critical in the transition to a low-carbon, climate-resilient and resource-efficient economy".

Zhu Jiejin, an associate professor of global governance at Fudan University in Shanghai, says China is becoming "a front-runner in boosting green finance", as the country states in its 13th Five-Year Plan (2016-20) that it will establish a green finance system.

The G20 members' support for lowering financing costs for the growth of a green economy shows the increasing recognition of green financing and puts a high priority on environmental sustainability, Zhu says.

Lu, the Foreign Ministry spokesman, also says the annual informal leaders' meeting of the BRICS nations - Brazil, Russia, India, China and South Africa - will be held on the sidelines of the summit.


(China Daily European Weekly 08/19/2016 page14)