Stronger role for China sought

China's growing influence in global economic architecture is crucial both for this populous country's growth and that of the world, according to a renowned economist from Brussels.

Fredrik Erixon, director of the European Center for International Political Economy, a world-economy think tank based in Brussels, has urged global leaders to further boost China's role in reforming global economic governance structure when they gather for the G20 Summit.

"China's role in global economic governance is certainly on the agenda and whatever happens at the G20 Summit there is already a process under way that is shifting global economic power toward China and other emerging economies," Erixon said before the summit.

He said the summit will be opening at "an extraordinarily difficult time" for the world.

He added: "I would hope that China in the near future will take a stronger leadership role on issues that is important for China and the world economy."

He advised that China do more to defend the system of open trade and push for greater and faster reduction of trade barriers.

"Economic power is not just an issue about economic size, it is also an issue about what a country wants to do with its power," Erixon said.

"Many other countries are waiting to see what China wants to do with its economic power."

Erixon said all G20 members are in need of reforming their economies to increase productivity growth and support new innovation, and there has to be a new drive for economic reforms to open up more competition.

He said central banks remain in an active mode, still pumping a lot of liquidity into economies, but it is clear that there is a diminishing return to these actions and there is little room for greater fiscal action, but those countries with space for it should cut taxes and increase expenditures on public investment.

"There are great opportunities to clinch new trade deals that can give global trade a boost," he said.

In helping the recovery of the world economy, he said China's best strategy is to lead by example, and show the world that it can revive economic growth by reforming its economy.

Erixon said the biggest value of G20 summits is that leaders get a chance to hear and understand how other leaders think, what they plan for the future and how they will react to the plans of other countries.

A good summit will also help shape a common understanding of key problems and challenges facing the world in the short as well as the long term, and set the stage for coordinated responses.

"This summit comes at an extraordinarily difficult time," he said. For example, he said, the US election is unpredictable.

In Europe, leading countries are faced with mounting problems around the European Union, with Brexit negotiations expected to start next year, and with government elections in the Netherlands, France and Germany around the corner.

"In my view, this is not a political backdrop that is supporting the idea of more global cooperation. Several countries are instead reducing their political attention span to key domestic issues," Erixon said.

fujing@chinadaily.com.cn

(China Daily 09/04/2016 page25)