Business / Hangzhou G20

China G20 meeting helping to develop inclusive growth

By Cecily Liu ( Updated: 2016-08-31 21:22

The focus on innovation-driven growth at the G20 Leaders Summit is key to boosting global economic potential, while China's invitation to significant developing countries helps to develop inclusive world growth, said Stephen Phillips, chief executive of the China Britain Business Council.

Phillips said China's hosting of G20 is an important step which demonstrates the further integration of China into the global environment at a time when the world continues to face a wide range of uncertainties.

"The 2016 G20 presidency very clearly exhibits China's growing willingness and ability to take a leading role in global affairs, and its stronger determination to deal with complex global economic issues together with other major economies," he said.

Phillips was speaking to China Daily ahead of G20 in Hangzhou on September 4-5.

He said the G20 can facilitate the reduction of trade barriers globally, and China -led projects such as the Belt and Road initiative play a key role in strengthening trade and investment.

First proposed in 2013 by Chinese President Xi Jinping, the Belt and Road initiative seeks to strengthen trade and investment links between Asia and Europe through infrastructure development, and since its inception Britain has been a key participant and advocate for the initiative.

"Belt and Road countries account for around 2/3 of the world's population, but only around 1/3 of the world's GDP. This very starkly shows the tremendous potential that exists if the right infrastructure and optimal trade and investment environment is out in place, whilst crucially ensuring that new development is undertaken with sustainability at the very heart of the initiative," Phillips said.

He added that China's increasing integration into the global business environment is significant for global economic recovery. "Today's China is big, increasingly globally integrated, and still only at the beginning of its aspirations to see its leading companies globalize."

Phillips said China's leadership at G20 is based on the example of its own growth and initiatives, while China's willingness to participate in the global governance processes is encouraging and should be welcomed.

He said two example of China-led initiatives that change global economic governance are the creation of Asia Infrastructure Investment Bank, and the internationalization of the renminbi.

The creation of AIIB promotes a new way of funding infrastructure investment, with the motto of "lean, clean and green", meaning the bank tries to reduce bureaucracy to a minimum and prioritize the financing of environmentally sustainable projects.

Meanwhile, the internationalization of renminbi, through promoting the currency's international use for trade and investment purposes, is giving global financial system an alternative reserve currency in addition to the dollar, so essentially strengthening the global financial system's stability.

This year's G20 will see the broadest representation of developing countries in G20 history, which Phillips finds highly encouraging, saying its demonstrates that G20 is "increasingly relevant" and " is a representative platform of the global community."

He said because international trade and investment can create and maintain jobs, generate wealth and tax-take to invest in societal needs from education, to healthcare, so integrating more countries into this process can help developing countries participate in the world economy.

"There is of course much to learn from China's own experience. China itself has made remarkable achievements over the last three decades or so, lifting over 500 million people out of poverty. And looking to the future, China's far-sighted Belt and Road initiative can play a huge role in the next step of economic development."

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