As one of the world's largest economies, China has a pivotal role to play in steering the global conversation and ensuring coordinated international action on issues related to world trade. A commitment by China to open and free trade is therefore highly significant, especially at a time when political and public support for free trade is on the wane.
Given the downbeat international mood on trade issues, the G20 under Chinese leadership must send a message of openness and President Xi Jinping has done so at the opening of the G20 Summit, which is encouraging and timely. This is not only crucial for the global economy but also vital for Europe-China relations.
Xi's speech promotes the idea that engaging with China's domestic growth agenda is something that every major economy should be interested in doing.
Searching for new sources of growth is a global imperative now. Developed countries have been mired in low GDP growth since 2008, and even China's growth rate is slowing. There is the chance for a new kind of compact between China and other countries in this hunt for new growth something that links the hunger for a more service sector orientated, high consuming model within China with better quality trading and economic relations with the rest of the world.
China's role in an open economy is special. China's experience in lifting people out of poverty and its important role as a provider of new sustainable technologies, like electric cars, LED lights and solar panels, is unique.
What is needed to ensure that the world gets the solutions that are needed is something that China has great experience in. Hence, China has a key role in any discussions about a sustainable open economy.
That China already has focused on establishing an open and frank atmosphere at the summit is most welcome. It is, however, important to remember that many of the most innovative stake holders who are entrepreneurs in small companies are not participating in the G20.
At the opening ceremony of the B20 Summit, President Xi gave a very comprehensive speech highlighting the direction of economic development in China, and the priorities going forward. President Xi was very clear that China is at the new starting point with its 13th Five-Year Plan.
People all around the world are worrying about the modest growth rates. What Xi said is that real growth now needs a shift in paradigms－it has to be some real changes and reforms, and some of them will not be simple. But the fact is, the world does need some transitions and reforms from established interests－that is what Xi was saying. And it is a message for everybody around the world.
