G20 china_web

Editors’ introductions
The G20 can create new momentum
for economic development
China can share its approach with the
world at the G20 Hangzhou Summit
global industrial chain.
On global economic and financial
governance, the deep-seated influence of
the financial crisis continues, even seven
years later. With sluggish global growth,
quantitative easing in monetary policy can
only bring about a false economic boom.
The future trend of global governance
is developed and developing countries
participating equally in decision-making
within the G20.
The G20 will continue to provide
political support, promote global economic
governance reform, ensure greater fairness
and equitability, and increase the voice
of emerging markets and developing
countries. Boosted by the G20, existing
international financial institutions are
being reformed, and resources and crisisresponse
capabilities are strengthening. The
innovative Asian Infrastructure Investment
Bank, established at China’s initiative,
supplements the existing international
financial system. It emphasises win-win
cooperation, openness, inclusiveness and
constructiveness. It will inspire the G20.
International cooperation
An open world economy is key for upgraded
global governance. More openness and
international cooperation in production
capacity can match the supply and
demand of countries at different stages of
development. Developing countries’ needs
for urbanisation and industrialisation
are currently restricted by technology,
equipment and infrastructure, and in
developed countries, upgrading equipment
and infrastructure is complicated by
inadequate funds and high costs.
China can fully use its advantages
in cost-effective mid-range equipment,
engineering construction and large foreign
exchange reserves in helping balance
production capacity. Tripartite cooperation
will enable all parties to use their respective
advantages, lower construction costs, help
break bottlenecks, enhance industrial
upgrading and promote the integration of
the global industrial chain.
As the G20 consists of both developed
and developing countries, it can create new
momentum for economic development.
China’s Belt and Road Initiative, unlike
previous free trade zones, aims at matching
the development strategies of voluntarily
participating countries for inclusive and
sustainable development through mutual
consultation, construction and sharing.
Globalisation intimately and inextricably
interconnects the interests of all countries.
Global economic stability and development
are only possible by opposing trade
protectionism, strengthening multilateral
trading systems, enabling the development
of different countries, ensuring that
regional free trade arrangements support
the multilateral system, strengthening
international cooperation in production
and forming new global value chains.
Connected development
Inclusive and interconnected development
is needed in this era of global value chains.
Each country’s development should be
connected to global economic growth, for
an optimised allocation of global economic
resources and the integration and mutual
reinforcement of the economy, society,
environment and governance. The current
profound economic adjustment after
the global financial crisis shows that the
original model of economic development
cannot solve the problems of economic
restructuring and sustainable development.
More fair, open, comprehensive and
innovative development is both a moral
responsibility and the necessary step to
economic development.
The 2030 Agenda and the Sustainable
Development Goals have established a
new framework for global development.
All countries are now expected to examine
development paths from this new
perspective and properly relate sustainable
development, equality and justice to
economic transformation and growth.
They are expected to respond to climate
change, environmental protection and
other challenges in a coordinated manner.
The G20 will incorporate a new partnership
in global economic governance, which
will contribute to a global community
of interests and a community of destiny.
Through interconnected macroeconomic
policies, the G20 will become a platform
for long-term international economic
cooperation and development.
Since 2008, the slow economic recovery
flows from the exhaustion of the previous
technological and industrial revolution.
Uneven development remains, and existing
economic governance mechanisms are
defective. Yet China has maintained a
high growth rate, while consolidating
the foundation of its real economy. Its
long-term sustainable economic growth
shows its unique experience in promoting
development. In hosting the G20 Hangzhou
Summit, China can share its approach
with the world to ensure sustainable
development. G20
Jia
Jinjing
Director
Macroeconomic
Research Department
Jia Jinjing is the Director of
the Macroeconomic Research
Department at the Chongyang
Institute for Financial Studies
at Renmin University of China.
Previously, he was responsible for
policy analysis and investment
practice at the Ministry of Land
Resources of China, and at CAS
Holdings, among other public and
private sector institutions.
www.rdcy-sf.ruc.edu.cn
G7G20.com September 2016 • G20 China: The Hangzhou Summit 81