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Remarks by President Hu Jintao at the Third G20 Financial Summit

2009/09/28

Remarks by H.E. Hu Jintao

President of the People's Republic of China

At the Third G20 Financial Summit

Pittsburgh, 25 September 2009

 

President Obama,

Dear Colleagues,

It gives me great pleasure to come to Pittsburgh for the third G20 financial summit. Let me first express sincere thanks to President Obama for the active effort and thoughtful arrangement he has made for our meeting.

Following the two summits in Washington and London, the international community's confidence has strengthened, financial markets have moved towards stability and the world economy has seen positive changes. We are soberly aware, however, that the foundation of an economic rebound is not yet solid, with many uncertainties remaining. A full economic recovery will take a slow and tortuous process. It remains our primary task at present to counter the international financial crisis and promote a healthy world economic recovery. At the same time, we should stay firmly committed to advancing the reform of the international financial system and achieve comprehensive, sustainable and balanced world economic development while addressing the global development imbalances.

First, we should stand firm in our commitment to stimulating economic growth. We should make full use of the G20 platform to step up macroeconomic policy coordination, maintain the overall consistency of our policies and ensure that they are timely and forward-looking. All countries should keep up the intensity of their economic stimulus plans. Both developed countries and developing countries should take more solid and effective measures and make greater effort to boost consumption and expand domestic demand. Major reserve currency issuing countries should take into account and balance the implications of their monetary policies for both their own economies and the world economy with a view to upholding stability of international financial markets. We should resolutely oppose and reject protectionism in all forms, uphold a fair, free and open global trading and investment system, and impose no new restrictions on goods, investment and services as we have committed. And we should work for the success of the Doha Round negotiations on the basis of locking up the existing achievements. We should energetically promote international cooperation in new industries, especially energy conservation, pollution reduction, environmental protection and new energies, and foster new growth areas in the world economy. We should intensify international scientific and technological cooperation and make full use of the advancement in science and technology to boost the internal dynamism of world economic growth. At the same time, we should stay on alert against any possible adverse impact of the stimulus measures, the potential risk of inflation in particular.

Second, we should stand firm in our commitment to advancing the reform of the international financial system. At the previous two summits, G20 leaders reached the political consensus of reforming the international financial system. This is a solemn commitment we have made to the whole world. The international economic and financial situation is now improving, but we should remain as resolved as ever to advance the reform and our targets of reform must not become any weaker. We should follow through on the timetable and the roadmap agreed upon at the London summit, increase the representation and voice of developing countries and push for substantive progress in the reform. We should improve the existing decision-making process and mechanism in international financial institutions and encourage more extensive and effective participation of all parties. We should move forward the reform of the international financial supervisory and regulatory regime. The reform should get to the most fundamental principles and objectives of supervision and regulation. The future financial supervisory and regulatory regime should be easy to operate and highly accountable. We should step up cooperation in financial supervision and regulation, expand its coverage, formulate as quickly as possible financial supervision and regulation standards that are widely acceptable, and ensure quality implementation of all reform measures.

Third, we should stand firm in our commitment to promoting balanced growth of the global economy. The issue of global economic imbalances has drawn close attention from the international community. It includes imbalances between savings and consumption, and imports and exports in some countries. But more importantly, it manifests itself in the imbalances in global wealth distribution, resource availability and consumption and the international monetary system. The causes for such imbalances are complex and manifold. Factors at work include deepening economic globalization, international division of labor and industrial relocation, and global capital flow. The existing international economic system, macroeconomic policies of major economies, and the consumption culture and way of life of different countries have also played a direct part. The root cause, however, is the yawning development gap between the North and the South. Only with real development of the vast developing world can there be solid global economic recovery and sustainable world economic growth. We should build up international institutions that promote balanced development. We should support the United Nations in better guiding and coordinating development efforts, encourage the World Bank to increase development resources and enhance its role in poverty reduction and development, and urge the IMF to set up a financial rescue mechanism that will provide prompt and effective assistance and give financing support to the least developed countries on a priority basis. We should scale up input in development in diverse forms. The substantial amount of funds raised through the G20 summits should be used first and foremost to address development imbalances. Developed countries should implement the Monterrey Consensus in real earnest, take concrete steps to increase assistance to developing countries, and promote the attainment of the UN Millennium Development Goals. We should value the important role of technological cooperation in promoting balanced development, reduce man-made barriers to technology transfer, and create an enabling environment for developing countries to narrow the development gap. It is of particular importance to step up cooperation in green technologies, ensure developing countries access to applicable and affordable green technologies, and avoid a new "green divide". We should change our economic growth patterns with a sense of urgency and active measures, and at the same time we should take into account different circumstances and proceed in the light of actual conditions. Countries at different stages of development should be allowed to choose their own approach and pace suited to their national conditions, and the space for development that the developing countries well deserve must not be compromised.

Dear Colleagues,

China attaches great importance to comprehensive, balanced and sustainable economic and social development. We have mainly relied on expanding domestic demand, especially consumer demand in mitigating the impact of the international financial crisis. We have taken active steps to adjust the domestic and overseas demand structure and the investment and consumption structure, and strike the right balance among the speed, structure, quality and efficiency of economic growth. In the wake of the international financial crisis, China has adopted a host of policy measures to boost domestic demand, adjust economic structure, promote growth and improve people's well-being. These measures have produced initial results. In the first half of this year, despite the drastic contraction in overseas demand, China's GDP managed to grow by 7.1% year on year. This shows that our policy to stimulate growth by boosting domestic demand is effective. And China's economic growth has contributed to the global economic recovery.

For years, China has taken an active part in international development cooperation. We have been actively engaged in the international cooperation to tackle the financial crisis ever since it broke out, despite the enormous difficulties and grave challenges confronting us. We will follow through on our assistance pledges and measures in a responsible manner, and offer more help to developing countries, particularly the least developed countries in Africa, within the realm of our capabilities.

Dear Colleagues,

The G20 has held three summits in less than a year. These meetings have produced positive results. I am confident that with the concerted efforts of the entire international community, we will prevail over this international financial crisis and usher in a more prosperous future for the world economy.

Thank you.

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