1. Chinese President Xi Jinping bats for globalisation, greater role for emerging economies

Chinese President Xi Jinping bats for globalisation, greater role for emerging economies

Globalisation is a "double-edged sword" but cannot be blamed for problems being faced by the world, Chinese President Xi Jinping today said even as he called for a greater role for emerging economies in governance of global institutions.

By: | Davos | Updated: January 17, 2017 6:39 PM
Stating that some people blame economic globalisation for the problems, Xi Jinping said many of the issues facing the world are not caused by it. (Reuters) Stating that some people blame economic globalisation for the problems, Xi Jinping said many of the issues facing the world are not caused by it. (Reuters)

Globalisation is a “double-edged sword” but cannot be blamed for problems being faced by the world, Chinese President Xi Jinping today said even as he called for a greater role for emerging economies in governance of global institutions.

Stating that some people blame economic globalisation for the problems, Xi said many of the issues facing the world are not caused by it.

While acknowledging that it has powered growth and facilitated movement of goods and services worldwide, the Chinese premier said it should also be recognised that “economic globalisation is a double-edged sword”.

Speaking at the opening plenary of the World Economic Forum (WEF) Annual Meeting here, he said there are global challenges like terrorism and refugee issues and many people are wondering what has gone wrong with the world.

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To answer and know the solution that we must understand the problem, he added.

According to him, the refugee problem is not because of globalisation. It is war, conflict and regional turbulence that has created this problem and the solution lies in restoring peace, he said.

Even financial crisis did not happen because of economic globalisation but due to problems of financial institutions, he added.

Invoking famous author Charles Dickens, he said today we live in times of contradictions.

People, he added, come to Davos from across the world to exchange ideas.

“We should not develop the habit of retreating to harbour when faced with a storm in the ocean… We must remain committed to promote free trade and investments by opening up and say no to protectionism,” Xi said.

Emphasising that no one will emerge a winner in a trade war, Xi called for developing the motto of inclusive governance.

“There is a growing call for reforming global economic systems and architecture. All countries whether big or small are all part of the world.

“Emerging markets deserve better representations…IMF quota reforms have come into effect and it should sustain,” he said, adding that there is need for an inclusive development model to ensure equal access to people to opportunities.

Pitching for new policy measures and advance structural reforms, the Chinese President said, “we should create new growth models and we should meet the challenges of climate change and ageing population”.

“We should also work to negate the impact of automation and IT innovations on job market,” he said, adding that a new model of collaboration and cooperation between countries should be created.

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Poor countries need to take care of their interests but they should refrain from growing at the cost of others, he noted.

On Paris climate change pact, Xi said all signatories must stick to their views.

Observing that in philosophical terms nothing is perfect, Xi said while it is true that economic globalisation has created new problems but “we should work to cushion its negative impact and deliver all benefits to all countries”.

Stressing that at present, the most pressing task is to steer global economy to growth path, Xi also said global growth is at its slowest pace in seven years.

A new path of global growth remains elusive and inadequate global economic governance makes it difficult, he said, emphasising that global financial markets need to be more resilient to risks.

Xi said China has become the world’s second largest economy after years of sustained reforms.

A path of China’s reality has been followed all these years and it have refused to blindly follow others, he added.

“This is a path that is people-oriented development policy. Development is for the people, of the people and by the people,” the Chinese President said.

Asserting that China is committed to a fundamental policy of opening up, Xi said the country’s growth and better living standards today are also a blessing for the whole world.

“We know in China that there is no free lunch and development can be achieved by hard work and we cannot expect someone else to do it,” he said.

Since reforms were launched and the country began opening up, China has contributed significantly to the global economic growth. The country has not only benefited from the economic globalisation but has also contributed to it, Xi said.

While China’s economy has entered a new normal, Xi said factors driving the growth remain unchanged and emphasised that it is not jealous of others. “…we open our arms to people of other countries to come and join our growth.”

Once China had its own issues with economic globalisation and was not sure whether to join WTO, but then it took the step of embracing the world markets, he said.

Global economy is a big ocean that no one can ignore and the right thing to do today is to seize every opportunity that economic globalisation presents to us, Xi said.

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China favours strong regional trade agreement and will accept the new normal and stay on course for growth, said the Chinese President.

“We will develop new boosters of growth and vitalise the traditional ones… We will make Chinese markets better regulated and a better place to do business,” he noted.

China’s development will continue to provide opportunities to businesses in other countries and will keep doors open, Xi said.

At the same time, he hoped that others will also not put any barriers for Chinese companies.

Greenpeace International said Xi’s reference to climate change highlights China’s evolving calculus towards taking action on the issue.

“Given the current volatility of global politics, President Xi Jinping’s address not only helped calm nerves but boosted global confidence.

“Now more than ever, the world needs to follow committed powers like China to safeguard and enhance the hard-fought international climate regime,” Greenpeace International’s Executive Director Jennifer Morgan said in a statement.

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