China will seek to keep Group-of-20 (G-20) leaders focused on economic development when they meet next month in Hangzhou.
When asked whether China will allow discussion of the South China Sea issue during the September 4 and 5 summit meeting, Vice Foreign Minister Li Baodong said leaders shouldn’t be distracted by other topics. Li made clear China wants to avoid sensitive diplomatic issues.
The consensus among members is to “focus on economic development and not be distracted by other parties,” Li said when asked about territorial disputes in the South China Sea.
“The Hangzhou summit must focus on economic issues,” Li added. “This is what people want to talk about most at the summit.”
Li gave similar responses to questions about China’s resolute opposition to South Korea’s deployment of a US missile defense system. The G-20 summit is about global economic governance, trade and investment, Li said at the briefing in Beijing on Monday.
Leaders of the world’s largest economies will gather at a time of slowing trade and tepid global economic growth.
China suffered a setback in July when an international tribunal said its efforts to assert control over the South China Sea exceeded the law—a move that may empower other claimant states. China has largely ignored the ruling.
On the economic front, China’s recent stabilization showed signs of faltering in July, as private businesses remain reluctant to invest and authorities seek to curb financial risks and cut excess capacity.
Policy-makers have had success restoring calm to the nation’s markets, a year after China’s shock devaluation of the yuan rocked assets around the world.
Speaking at the same briefing in Beijing on Monday, People’s Bank of China (PBOC) Deputy Governor Yi Gang said yuan internationalization is a market-driven process, and its development has surpassed the expectations of many. Yi said he’s confident in the yuan’s internationalization process.
The central bank said it would give markets a greater role in deciding the exchange rate while keeping the currency basically stable, according to the PBOC’s annual yuan internationalization report.
China will propose a joint initiative to revive weak global growth at the G-20 summit, amid rising protectionist sentiment in the United States and Europe, officials said on Monday. The meeting in the eastern Chinese city of Hangzhou comes as an unusually weak global economic recovery is helping to fuel the popularity of US and European political movements that advocate protection for local industries.
Details of Beijing’s proposal still are being worked out but will include reforms aimed at strengthening the global financial system and promoting technological innovation, said the Chinese finance and foreign affairs officials.
They gave no indication it might include an economic stimulus. Some investors have expected such a measure but officials at two previous G-20 gatherings this year said the timing was wrong, because individual economies face different conditions and need to take actions tailored to their own needs.
The proposal will stress “inclusive growth” to spread economic benefits widely and shore up support for free trade, said a deputy finance minister, Zhu Guangyao. He said governments should be on “high alert” to “anti-globalization” sentiments.
“If the people cannot feel the benefits, then this sort of development cannot truly improve people’s lives, and people will have mixed feelings about such development,” he said.
Bloomberg News and AP
Image credits: AP/Ng Han Guan