I. Introduction

Zeng Xiao’an (spokesperson of CMOF): Ladies and gentlemen, good evening. Welcome to our press conference today. This morning, China held a dialogue with heads of 10 international economic organizations. We are honored to have Mr. Liao Min, Vice Minister of Finance, to give us a briefing on the Dialogue, and also take questions from the media. Now, let’s give the floor to Vice Minister Liao.  

Liao Min: Dear friends from the media, good evening. Welcome to the press conference.

On the morning of December 9, the “1+10” Dialogue was held in Beijing. Heads of 10 international economic organizations attended the dialogue, including President of the New Development Bank Dilma Rousseff, President of the World Bank Ajay Banga, Managing Director of the International Monetary Fund Kristalina Georgieva, Director-General of the World Trade Organisation Ngozi Okonjo-Iweala, Secretary-General of UN Trade and Development Rebeca Grynspan, Director-General of the International Labour Organization Gilbert F. Houngbo, Secretary-General of the Organisation for Economic Co-operation and Development Mathias Cormann, General Manager of the Bank for International Settlements Agustín Carstens, Chair of the Financial Stability Board Klaas Knot, and President of the Asian Infrastructure Investment Bank Jin Liqun.

Under the theme of “Building Consensus on Development to Promote Global Common Prosperity,” the participants had in-depth discussions and reached extensive consensus on the three specific topics of “Seizing Opportunities in Transformation to Promote World Economic Transition and Growth,” “Upholding Multilateralism in Advancing Reform and Development of the Global Economic Governance System,” and “China’s Endeavor to Further Deepen Reform Comprehensively and Break New Ground in Chinese Modernization.”

The world is rapidly undergoing changes unseen in a century. The global  recovery looks anemic, and economic globalization and multilateralism face obstacles and challenges. It is against this backdrop that the Dialogue took stock of the world economy and global governance, injecting positive energy and new momentum into multilateral cooperation. At the Dialogue, three key words were highlighted—commitment, support, and cooperation.？？

First, firm commitment to economic globalization and multilateralism was reaffirmed. Participants agreed that multilateralism and economic globalization are the cornerstone of international economic organizations and the global economic system. Globalization has run into headwinds, but technological advances have built up more profound drivers of globalization. Although multilateralism faces challenges, facts have shown that only by working together can parties tide over difficulties. The trend of economic globalization and multilateralism is unstoppable.

Second, strong support for global growth and common development was demonstrated. Participants stressed the necessity to further focus on development and put it high on the international agenda. All parties should work together to seize the opportunities of technological revolution and industrial transformation to make the pie of the global economy bigger. China is taking pragmatic measures to step up counter-cyclical adjustment, implement its macro economy and boost consumption by all means; China is also further deepening reform comprehensively, and opening up at a higher level, which means greater opportunities for world development. This is the biggest certainty the Chinese economy has to offer to the world economy.

Third, coordination and cooperation among international economic organizations was enhanced. Participants spoke highly of the important contributions made over the years by the international economic organizations to promoting effective global governance and common development. All institutions should enhance coordination and cooperation to create a peaceful and stable environment for development, improve global governance, maintain stable and efficient global industrial and supply chains, and foster new growth drivers. Heads of the participating IOs expressed their readiness to leverage the important roles of their organizations in the global economic system to push for closer macro policy coordination among countries, support countries’ efforts on structural reform, employment and people’s livelihood, and promote the strong, sustainable, balanced and inclusive growth of the world economy. They will work with all other parties to build consensus on development, mobilize resources for development, and fully implement the 2030 Agenda for Sustainable Development. They will deepen governance reforms of international economic organizations and keep improving the global economic governance system. Having followed closely the major reform measures outlined by the Third Plenary Session of the 20^th Central Committee of the Communist Party of China (CPC), they expressed support for China’s recent package of incremental policies and expected China to continue to serve as a “stabilizer” and “driver” for global growth. They also expressed their readiness to deepen communication and cooperation with China and provide advice and suggestions for China’s high-level institutional opening up and high-quality development, and hoped the new journey of Chinese modernization will bring more new opportunities to global development.

This is my briefing on the “1+10” Dialogue. Now I am ready to take your questions.

II. Q&A

Q1. CGTN: As you mentioned just now in your briefing, the world economy is among the three topics of the “1+10” Dialogue. May I ask how the heads of the participating IOs view current world economic dynamics? What are their policy recommendations?

A: Thank you for the question. During the Dialogue, participants had an in-depth discussion on the global economy. Leaders of the organizations were of the view that the world economy is showing features of low growth, high debt, weak investment and fragmentation. The world economy is recovering, although the pace is slow and momentum not strong, with a growth rate significantly lower than the average in the decade before COVID. The mid-term prospect is pessimistic, trade restrictions are on the rise, and geopolitical tensions have brought more uncertainties to global growth. They were generally concerned that “decoupling” was undermining global economic development and that unilateralism and protectionism were against the trend of globalization, hurting stability in global industrial and supply chains, driving up inflation and challenging the safety of the financial system, as this would make global economic recovery even more difficult.

At this critical juncture in global development, the heads of the participating IOs called for concerted international efforts to promote strong, sustainable, balanced and inclusive global growth. Here are the main policy recommendations: First, more international macroeconomic policy coordination. Major economies should consider the spillover effects of their macroeconomic policies and become a key force for global economic and financial stability. Second, firm rejection of protectionism. The international community should unswervingly promote economic globalization, and trade and investment liberalization and facilitation, and maintain stable and efficient global industrial and supply chains. Third, a peaceful and stable environment for development. The international community should work together to properly resolve differences through dialogue and consultation and join hands to address global challenges. Fourth, fostering of new sources of growth by seizing the opportunities presented by changes and encouraging the digital economy, green development, innovation and digital trade. Reforms should be facilitated to improve productivity and better combine labor force with technology. Fifth, more international assistance for developing countries to improve people's life in the course of development and promote common prosperity in the world. China has long been a major contributor to global growth. One single flower does not make a spring. Participating IOs expected China to continue to support other countries in the global south to push forward industrialization and modernization.

Q2. South China Morning Post (SCMP): This year, there have been many national elections, with rising geopolitical risks and signs of emerging “parallel systems” in global governance. The IOs at this Dialogue are leading institutions for global economic governance. What are their suggestions for improving the global governance system?

A: Thank you for the question. As I mentioned, the 10 participating IOs are indeed leading institutions for global economic governance and multilateral cooperation. We have the Bretton Woods institutions born after World War II, UNCTAD on trade and development, the International Labour Organization for social justice, the OECD for long-term economic growth, the Bank for International Settlements for cooperation among central banks, the Financial Stability Board for global financial stability, the Asian Infrastructure Investment Bank for regional connectivity, and the New Development Bank for cooperation in the Global South. International organizations play key roles in promoting sustained global economic and social development, upholding multilateralism and facilitating economic globalization.  

At present, changes on a scale unseen in a century are unfolding faster, global challenges are increasing and fragmenting the global economy, and the system of global economic governance faces challenges. As was outlined at the Dialogue, international economic organizations have taken active actions to improve the global economic governance system.

First, they have galvanized action to promote multilateralism, repudiate unilateralism and protectionism, and uphold the UN-centered international system and the international order based on international law. The IOs have worked to revitalize the multilateral trading system and improve the resilience of global industrial and supply chains. International cooperation is key to economic growth. They advised to enhance cooperation among international organizations and strengthen coordination in tackling global challenges, better safeguarding global economic and financial stability.

Second, they have brought development into sharper focus and to the center of the global agenda. The IOs have fostered global consensus on development, mobilized development financing through multiple channels and increased resource support for developing countries. They advised to increase financial and intellectual support for developing countries and help them catch up in poverty reduction, food security, industrialization and digital development, so as to realize inclusive growth. Participants spoke highly to China’s preferential tariff treatment for least developed countries. Multiple measures were taken to resolve the debt problem of developing countries and the international community was encouraged to work in unison to help developing countries tackle debt vulnerability and liquidity challenges. The IOs have also increased input into employment and social security to uphold global social justice.  

Third, they have deepened reforms of their internal governance to better respond to global challenges. The IOs have worked to shape the global economic governance system to better reflect changes in the global landscape, global economic structure and trade structure, and enhance the voice and representation of developing countries in global economic governance. They have updated international rules in development, economy and trade, finance and employment, and explored rule-making in emerging areas such as digitalization and green and low-carbon transition. The consistency and predictability of rules should be further enhanced.

China has never been a looker-on as global challenges intensify. We have made stronger-than-ever efforts for better global economic governance. President Xi Jinping proposed building a community with a shared future for mankind, the Belt and Road Initiative and the Global Development Initiative. These are wisdom from China for resolving the difficult issues facing mankind and strength from China for better global economic governance. At the G20 Summit in Rio de Janeiro, President Xi Jinping put forward proposals on improving global governance in areas of economy, finance, trade, digital development and ecological conservation, and proposed to make global development more inclusive, beneficial to all, and more resilient and build a just world of common development. China is ready to work with the international community including the IOs to uphold multilateralism, oppose the Cold War mentality such as the beggar-thy-neighbour approach and zero-sum game, and promote mutually beneficial and inclusive development to support work of the IOs, improve global economic governance system, increase human well-being and advance common prosperity.

Q3. Xinhua News Agency: China has long been an engine of the global economy, contributing to over 30% of global growth. However, given the new situation and issues in China’s economic performance, how did IO leaders see China’s economy?

A: Thank you for the question. In general, IO leaders agreed that economic growth in all countries faces common but differentiated challenges. They spoke highly of China’s progress in poverty reduction and development and China’s historical contribution to the world, and they paid great attention to the reform measures rolled out at the Third Plenary Session of the 20^th CPC Central Committee. They affirmed and supported the raft of incremental policies, and expected China to remain a stabilizer and engine of global growth. Firstly, they made positive comments on China’s economic situation. They affirmed China’s positive progress in supporting growth and promoting structural adjustment. Though China’s growth has slowed down, there is ample macro policy space and IO leaders believe that the Chinese government is able to boost market confidence and realize stable and sustainable growth. Secondly, they think that China’s successful transformation will benefit the global economy. China is transitioning from an investment-driven growth model to one that is driven by consumption and innovation, and would therefore carry out reforms on income distribution, social security, business enabling environment and investment and financing models, so as to increase productivity, improve mid-term prospect and embark on a path of high-quality and sustainable growth. China is the second largest economy in the world, and China’s successful transformation would benefit the global economy. Thirdly, the leaders believe that China needs to ensure domestic economic resilience more than ever. External factors, such as global geopolitical tensions, economic fragmentation and rising trade frictions, would affect China’s growth. Participants suggested that China take more effective measures on promoting consumption and increasing employment, so as to further expand total demand and improve economic resilience.

The positive comments from IO leaders represented their confidence in China’s development. China’s economy has injected sustained, strong momentum into the global economy, and thus became a pillar for global peace and development. China makes development plans every five years to ensure continuity. We have stable policy orientations, and insist on seeking progress while maintaining stability, and we take regulatory measures decisively based on economic performance. Recently, we strengthened counter-cyclical adjustment, and took strong and pragmatic measures for sustained recovery and growth. We have a mega market, as household income continues to rise and the digital and green economy develops rapidly, new demand for consumption and investment will be unleashed. China’s industrial structure is upgrading, with emerging industries booming and new growth drivers continuing to expand.

The huge potential of China’s economy has created more opportunities for its own development, and global development as well. China has contributed to around 30% of global growth for over 10 years. China is a member of the world, and we never close our doors. We stick to the basic national policy of reform and opening up, and keep enhancing economic and trade relations with all countries, properly handling trade frictions. We always share our development benefits with the world, providing not only high-quality products to the world, but also a mega-market for all countries and great opportunities for global development. The underlying logic of China’s positive economic trajectory has not changed, and China’s principle of sharing benefits with the world has not changed, and we will continue to bring certainty and predictability to the global economy with our own stable development.