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Working Together to Build a High-Quality World Economy

2019/06/28

Remarks by H.E. Xi Jinping
President of the People's Republic of China
On Global Economy and Trade at the G20 Summit

Osaka, 28 June 2019

Dear Colleagues,

It is my great pleasure to join you here in Osaka.

Ten years after the 2008 international financial crisis, the global economy has again reached a crossroads. Protectionism and unilateralism are spreading, and trade and investment tensions are on the rise, bringing disruptions to the global industry landscape and financial stability. The world economy is confronting more risks and uncertainties, dampening the confidence of international investors.

The G20 is the premier forum for international economic cooperation. We, as the leaders of major economies, are duty bound to re-calibrate the direction of the world economy and global governance at this critical juncture, work together to boost market confidence, and bring hope to our people.

- We must respect the objective laws of the economy. Economic operation has its underlying laws. Fully respecting these laws, leveraging the role of the market and removing man-made obstacles represent a sure way to raise productivity, boost trade and revitalize all industries.

- We must tap into the prevailing trend of development. The history of human society is marked by a transition from isolation and exclusion to openness and integration. This is an unstoppable trend. We must open up further to embrace opportunities of development and seek win-win outcomes through closer cooperation. We must work together to shape and steer economic globalization in the right direction.

- We must keep in mind our shared future. In today's world, all countries' interests are closely intertwined. We have a high stake in each other's future. By expanding common interests and taking a long-term view, we can realize enduring peace and prosperity in the world and deliver a better life to all our people. We must not allow ourselves to become prisoners of short-term interests and make irrevocable mistakes of historic consequences.

Based on these principles, I would like to share with you a few suggestions:

First, we need to persist in reform and innovation to find more impetus for growth. The world economy is in a transition from old to new drivers of growth. We must find the best way to advance structural reform. We must develop a future-oriented industry structure, policy framework and management system through promoting the digital economy, enhancing connectivity and improving social security, so as to enhance the efficiency and resilience of our economies and strive for high-quality development. We must capitalize on the historic opportunities brought by new technologies, industries and forms of business to foster an enabling market environment where innovation is respected, protected and encouraged. We must champion international collaboration on innovation and rise above geographic and man-made fences. When we put our heads together to resolve the common challenges and spread the fruits of innovation, we can make a difference for more countries and for the life of their peoples.

Second, we need to progress with the times and improve global governance. With economic globalization facing headwinds, we must reflect on the important question of how best to improve global governance. The G20 should continue to take the lead in making the world economy open, inclusive, balanced and beneficial for all. We must strengthen the multilateral trading system and pursue WTO reform as necessary. The goal of the reform is to bring the WTO up to date and make it better able to deliver its mandate of enhancing market openness and boosting development, and the results should be conducive to upholding free trade and multilateralism and to narrowing the development gap. At the same time, the G20 must also anticipate future systemic financial risks and challenges at the global level. We must ensure sufficient resources for the financial safety net and see to it that the representativeness of the international financial architecture makes more sense and better reflects the realities of the world economy. This not only is a matter of fairness, but also affects our ability to take targeted and effective measures to meet challenges and navigate crises when they come our way. It is also very important for the G20 to implement the Paris Agreement and improve energy, environmental and digital governance.

Third, we need to rise up to challenges and break bottlenecks in development. The myriad challenges facing the world today are all related in one way or another to the development gap and deficit. The gaping shortfall in global development financing means that the realization of the UN 2030 Agenda for Sustainable Development remains a daunting task for us. It is against such a backdrop that China proposed the Belt and Road Initiative. The Initiative is designed to mobilize more resources, strengthen connectivity links, leverage potential growth drivers, and connect the markets with a view to integrating more countries and regions into economic globalization and achieving shared prosperity through mutually beneficial cooperation. The success of the Second Belt and Road Forum for International Cooperation demonstrates the broad welcome and support for this Initiative from the global community, as it effectively responds to the aspirations of our people and the trend of our times. It is important that the G20 continue to prioritize development in macroeconomic policy coordination, scale up input in development, and lead development cooperation through concrete actions. By doing so, we can live up to the expectations of developing countries and secure a lasting driving force for global growth.

Fourth, we need to uphold our partnership and resolve differences properly. The G20 is a grouping of major advanced economies and emerging markets, accounting for nearly 90% of the global economy. Given the different development stages of G20 members, it is only natural that we may have diverging interests and views on some issues. The important thing is to always promote our partnership and treat each other with respect and trust, and in that spirit, engage in consultation as equals, manage differences while seeking common ground, and build greater consensus. If this can be achieved between major countries, it will serve not only our own interests but also peace and development in the world.

Colleagues,

The Chinese economy has continued its stable and sound performance, with its GDP growing within a proper range of more than 6% for years running. On top of the steps we have taken recently, China will further unveil major measures aimed at breaking new ground in opening-up and delivering high-quality development.

First, more will be done to open up the Chinese market wider. We will release the 2019 edition of the negative list on foreign investment. The focus will be on greater openness in the agriculture, mining, manufacturing and services sectors. We will set up six new pilot free trade zones and open a new section of the Shanghai Pilot Free Trade Zone, and will speed up exploration of building a free trade port in Hainan province.

Second, greater initiative will be demonstrated in expanding imports. We will further bring down China's overall tariff level, strive to remove non-tariff trade barriers, and slash institutional costs of imports. We will ensure the success of the Second China International Import Expo.

Third, more steps will be taken to improve the business environment. In the new legal framework for foreign investment that is to take effect on 1 January next year, we will introduce a punitive compensation mechanism for intellectual property infringement cases and make the relevant civil and criminal laws more stringent to deliver better IP protection.

Fourth, equal treatment will be extended to all foreign investment. We will lift all foreign investment restrictions beyond the negative list, and provide equal treatment to all types of businesses registered in China in the post-establishment phase. A complaint mechanism will be set up for foreign companies to air their grievances.

Fifth, greater efforts will be made to advance trade talks. We will push for an early conclusion of the Regional Comprehensive Economic Partnership (RCEP) and for faster progress in the negotiations on a China-EU investment agreement and a China-Japan-ROK free trade agreement.

Let me conclude by saying that China has full confidence in following its path and running its own affairs well. At the same time, China will work in the spirit of peaceful co-existence and win-win cooperation with all other countries to build a community with a shared future for mankind and to tirelessly pursue a brighter future of the global economy.

Thank you.

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