Chinese Premier Li Keqiang and the leaders of major global financial institutions reiterated their commitment to the global economy on Tuesday (6.11.2018) in Beijing. defense of multilateralism amid trade tensions and downward pressures threatening the global economy.
"We all believe that it is necessary to maintain trust, hold more consultations to deal with the problems we face and uphold the free trade system," Li said at a press conference on Monday. Celebration of '1+6 Dialogue' in Beijing.
In addition to China, the talks included the International Monetary Fund (IMF), the World Bank (WB), the International Labour Organization (ILO), the World Trade Organization (WTO), the Organization for Economic Cooperation and Development (OECD) and the Financial Stability Board (FSB), whose top representatives were also present.
The Chinese premier stressed that despite the "current economic uncertainties and the rise of protectionism," in a clear reference to the trade war between China and the United States, the Asian giant is "willing to work" with economic institutions to find new solutions and make "more contributions" to the recovery of the world economy.
"We want to see greater integration of the Chinese economy into the global arena, and progress is being made in that regard," he said.
Li used the ongoing Shanghai International Import Expo as an example, saying China's determination to open up to the world is "unwavering."
He also announced that the country will expand the opening of its financial market. although in an "orderly" manner, mentioning the banking, negotiable securities, funds, futures securities and insurance sectors.
He also said that Chinese and foreign companies would play on "equal terms" and that measures would be taken to ensure a "stable" investment environment, a term he also used regarding the yuan exchange rate.
For her part, IMF Managing Director Christine Lagarde set her forecast for China's GDP growth at 6,6% for this year and 6,2% for next year, noting that the country has performed "well" in 2018, with "strong" growth, which contributes to its "successful policy" of rebalancing "to move from rapid growth to quality growth."
However, the Frenchwoman did not avoid trade tensions or monetary adjustments and their impact on the financial sector, which according to her are some of the "clouds" that the global economy must overcome, whose growth forecast for 2018 and 2019 was 3,7%.
"The effects of the trade war with the US are particularly severe for both countries. According to our forecasts, it will cut 0,6% of China's GDP and 0,2% of the US's," Lagarde noted.
However, the IMF chief said the dialogue on China's economic outlook has been "very constructive."
Lagarde agreed with Li on the need to strengthen and modernize multilateral frameworks in order to safeguard financial stability and the development of the global economy.
"China must continue to follow the same path, it must continue to rebalance its economy and must not take steps backwards in its reforms. We hope that its growth will remain robust and contribute to the recovery of the global economy," he concluded.
World Bank President Jim Yong Kim also pointed to global economic threats, and recommended that countries invest in human capital to reduce their vulnerabilities as much as possible.
He also praised the steps taken by China to eradicate poverty, citing as an example some areas in the country's interior, where economic momentum has been recovered "thanks to the population's access to capital, infrastructure" and innovations such as the Internet and e-commerce.
For his part, WTO Director-General Roberto Azevedo stressed that China will have to play "an important role" in establishing mechanisms to resolve trade disputes.
"The situation is unprecedented, not only in terms of risks but also in terms of opportunities. The next G20 summit - to be held at the end of November in Argentina - will be a good opportunity to discuss how to strengthen the trading system for all countries," he said.
FSB President Mark Carney stressed the importance of minimising financial risks in sectors such as fintech, while Deborah Greenfield, ILO Deputy Director-General for Policy, emphasised the need to close the inequality gap.
In last year's dialogue, the Chinese premier already insisted that free trade is the way to deal with difficulties and challenges, while both financial institutions and China stressed the need to protect multilateralism to achieve a strong and inclusive economy.
Source: Reuters
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