G20 Hangzhou summit leaves economic legacy with landmark China solutions

Since China took over the G20 presidency last year, it has been striving to make an impact on the themes, nature and, most importantly, end results of the summit. China will not settle for the G20 being a mere talking shop; it wants to see positive action and is doing everything in its capacity to get the right results for the world economy.

The G20 held its first leaders' summit after the global financial crisis and has played an important role in economic crises response ever since. IMF Managing Director Christine Lagarde observed that not since the early 1990s has the world economy been so weak for so long, and the international community is hungry for therapies.

The Hangzhou summit marks a transition in the G20. No longer just focusing on short-term crisis response, it is emerging as a long-term global economic governance system, moving away from mindlessly repeating the clichés of consensus, instead engaging in real cooperation and policy coordination.

With a deep understanding of the challenges facing the world economy, Chinese President Xi Jinping is making a bold call for an innovative global economy that generates growth; an open economy seeking to expand the scope of development; an interconnected economy that forges an interactive dynamism; and an inclusive economy that creates the foundations for mutually beneficial outcomes for all.

The Hangzhou summit is set to break new ground: for the first time, green financing will be included on G20 agenda, mainly thanks to China's efforts. From now on, the financial sector will be expected to globally contribute to more environmentally friendly economic growth.

But all this is more than just words. A few days ago, China announced plans to establish a green finance mechanism that will facilitate the economy's transition to sustainable growth -- it was the first country worldwide to make such a move.

China, also for the first time, has gathered G20 trade ministers to push for more investment policy coordination and has proposed the first multilateral investment framework, as rising protectionism hinders global growth.

As the world's largest developing country, China believes that developing countries offer a huge market for trade and investment. It has invited the largest number of leaders from developing countries to the G20 summit in its history.

It is also the first time that the G20 has made an action plan to implement the 2030 Agenda for Sustainable Development, and carried out cooperation to support the industrialization of African countries and lesser developed countries.

The B20 summit employment task force, made up of Chinese entrepreneurs, proposed an initiative called SMART, which calls for sustainable innovation, massive public participation, accessible networks, revolutionary reform, and technological innovation to pool knowledge for shared growth.

The Chinese contribution to the G20 framework may make the Hangzhou summit the most fruitful one since the G20 was founded.

The summit may prove to be a landmark for world economic recovery, with strong growth restored through Chinese solutions. The prescription is out there and while the medicine may be bitter, its effect will be well worth the short-term pain.

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SOURCE Xinhua Gallery Media Co., Ltd.