Path for great nations-from G20 to 'Belt & Road'

By G20-BFSU Center, Beijing Foreign Studies University Zhang Yongdong, Zhao Bo

On November 15, Chinese President Xi Jinping attended the 10th Summit of G20 in Antalya, Turkey. He gave a key speech titled, Innovate in Growth Path, Share Development Achievement.

Xi proposed to accelerate the world's economic recovery, to "build opening world's economy, and spur foreign trade and investment vigor." He emphasized "revitalizing trade and investment and contributing to the world's economy rapidly as a key mission for G20."

The global economy is mired in a post-crisis era, with slow GDP (gross domestic product) growth, and less influx of foreign trade for the past three years, and foreign investment worldwide in 2014 has lowered by 8%.

As the largest developing country in the G20, China still enjoys relatively high growth rates, and proposes a "solution" to help recovery efforts.

As early as September and October, 2013, Xi proposed the 'Belt & Road' (OBOR) initiative in Kazakhstan and Indonesia to create new channels for business and trade.

Reinforcing regional coordination with East Asia, Central Asia, Africa and Europe in an effort to expand diplomatic relations, and enhance national identities; while driving investment and trade to boost economic development of countries along the OBOR realm.

The "OBOR" covers more than 50 countries with a total population of 4.4 billion and economic volume of $US21 trillion, and most are developing countries. The "OBOR" can revitalize investment and trade, reinforce the multilateral trade system and provide for national development.

After entering a new normal, China's economic development would succumb to lower savings and investment rates, while its economy restructures, taking industrial development and employment into account.

Beijing hopes to increase domestic consumer demand, control credit loans; intensify urbanization, invest more on property construction and control local financial and real estate risks; reforming Chinese currency exchange mechanisms, maintain an export-oriented economy and attract more foreign investment.

This will structure the long-term development of China. The "OBOR" would help China "go global" with its expertise and equipments for high-speed railways, along with other 'Made-in-China' products to integrate economic development and communication networks in the OBOR region.

The "OBOR" reinforces China's economic rise amidst difficulties. However, with continuous development of the Chinese economy, the nation must bear greater responsibilities to support healthy, stable and sustainable development.

Beijing should bring vigor to global development. China is making positive contributions to the world. Beijing has no intentions to become a world leader. The nation seeks cooperation and opening up. Xi said, "We cannot succeed without cooperation!"