Edition: English | 中文简体 | 中文繁体 Монгол
Homepage > Panview

G20 Hangzhou Summit boosts the world's confidence

Editor: Li Kun 丨CCTV.com

09-04-2016 18:21 BJT

By Zhao Minghao, researcher with the Charhar Institute

The G20 Hangzhou Summit hosted by China has captured the world's attention.

Although there's been a widespread sensation of "anti-globalism," China will deliver a core message to the world along with other G20 members states that: Globalization remains helpful for the development of human society, and countries across the globe still should work hard towards a more open, inclusive and sustainable world economy.

At the forefront of the international economic governance platform, the G20 places a priority on how to promote economic growth and expand business potential.

The past few years has witnessed a sharp drop in global economic vigor. Globalization has met the hardest spell since the Cold War, and the world has not yet recovered from the 2007–2008 Financial Crises.

Serious debt issues, along with economic insecurity, has led to a decline in consumption and cross-border investments, while trade protectionism measures have increased.

In the two decades before the financial crisis, global trade growth rates had doubled production growth, resulting in lively vigor of international commodity flows.

Nevertheless, import demand in the United States and Euro zone has dropped by 20 percent, which is even less than what it was in 2008.

The actual world economic growth rate in 2015 only reached 3.1 percent, and the global trade increased by 2.8 percent. Cross-border capital circulation was said to have returned to that of the 1980s.

It is expected that some breakthroughs in trade can be made in this year's summit.

Negotiations on the "agreement on environmental products" will continue, implementation of the "agreement on information technology" will be promoted and the problem of industrial overcapacity would be tackled through global efforts.

In the next five years, China aims to reduce 100-150 million tons of crude steel production, which could soften pressure on the industry.

Furthermore, the G20 Hangzhou Summit will also encourage major economies to move forward on "structural reform."

Large-scale economic stimulus measures are not likely to be concluded in this year's summit, wherein irregular currency policies such as the "quantitative easing (QE)" may not bring de facto economic growth.

One of China's major contributions to this year's G20 summit is a proposal on 9 prior fields with 48 guidelines in structural reform for member countries, along with an indicator system to evaluate the reform process.

An essential goal of structural reform is to promote a growth model motivated by innovations, which come down to deep reforms in areas of the financial system and labor markets.

The summit is expected to declare a detailed "plan of innovated growth action."

This year's summit gives much attention to the subject of "development."

Economic growth is different from development. The latter emphasizes universal benefits and inclusive economic growth, which means the fruits of economic growth must be shared with more people.

At the G20 Hangzhou Summit, participants will discuss implementation of the 2030 Sustainable Development Agenda for the first time and will also lay down a systematic action plan.

Closely related to sustainable development is the forum on climate change, which is also one of the focal areas.

Chinese President Xi Jinping and U.S. President Barack Obama handed over their countries' instruments of joining the Paris Agreement respectively to Secretary-General of the United Nations Ban Ki-moon in Hangzhou on Saturday. This will empower legal mandates on the Paris Agreement.

Globalization still faces unpredictable challenges. There won't be a winner in a closed world filled with conflicts.

The G20, as reiterated by China, can't be a symbolic body, but a practitioner to do actual things.

It is also people's wish that China with other G20 members will make coordinated efforts to get globalization on the right track to bring more vigor and open-mindedness to the world economy.


( The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com. )



Panview offers a new window of understanding the world as well as China through the views, opinions, and analysis of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.

Panview offers an alternative angle on China and the rest of the world through the analyses and opinions of experts. We also welcome outside submissions, so feel free to send in your own editorials to "globalopinion@vip.cntv.cn" for consideration.


Follow us on

  • Please scan the QR Code to follow us on Instagram

  • Please scan the QR Code to follow us on Wechat