On June 11, 2012, the Foreign Ministry held a briefing for Chinese and foreign media. Vice foreign ministers Cui Tiankai and Song Tao, Vice Minister of Finance Zhu Guangyao and Deputy Director of the International Department of the People's Bank of China Zhu Jun respectively introduced the background, significance, main activities and expected results of President Hu Jintao's upcoming state visit to Denmark and attendance at the seventh G20 summit.
I. President Hu Jintao's state visit to Denmark
Song Tao said that President Hu Jintao, at the invitation of Queen Margrethe II, will pay a state visit to Denmark from June 14 to 16. During the visit, Hu will meet with Queen Margrethe II and hold talks with Prime Minister Helle Thorning-Schmidt. The Chinese and Danish sides will jointly organize bilateral economic and trade activities and sign a number of intergovernmental cooperation documents and commercial agreements in the fields of promoting the two-way investment, avoiding double taxation, energy saving, renewable energy, agriculture, education and culture. Denmark is one of the first western countries establishing diplomatic ties with the People's Republic of China. Since the establishment of diplomatic ties between China and Denmark 62 years ago, the bilateral relations have made significant progress. China and Denmark established comprehensive strategic partnership in 2008. In recent years, the two countries have maintained frequent exchange of high-level visits, increased political mutual trust and deepened economic and trade cooperation. The bilateral exchanges and cooperation in environmental protection, energy, education and other fields continue expanding. Under new circumstances, the two sides look forward to further deepening the bilateral relations and enhancing pragmatic cooperation.
He pointed out that Hu's visit will be the first to Denmark paid by a Chinese head of state since China and Denmark established diplomatic ties and open a new chapter in China-Denmark relations. The visit has the following main purposes: first, maintain the high-level exchanges and strengthen the political relations featured by mutual respect, equality and mutual trust; second, complement each other with advantages and broaden the mutually beneficial pragmatic cooperation; third, boost the cultural exchanges and cooperation; fourth, strengthen the coordination and cooperation on major international and regional issues.
He noted that Denmark holds the EU rotating presidency in the first half of this year. It plays an important role in the EU affairs and in promoting the European integration. During the visit, Hu will also exchange in-depth views with the Danish leaders on the international economic situation and the European debt issue. Denmark is expected to continue to play an active role to promote the long-term and stable development of China-Denmark relations. Song believes that Hu's visit will be a full success with the joint efforts of both sides.
II. President Hu Jintao's attendance at the seventh G20 summit
Cui Tiankai said that the summit will be held in Los Cabos, Mexico from June 18 to 19 and discuss the world economic situation, the strengthening of international financial system and the issues of development, trade and employment. Hu will attend the summit at the invitation of host country Mexico's President Felipe Calderon. Hu will also meet with leaders of relevant countries during the summit.
He pointed out that the summit is held against the background the world economy faces many unstable and uncertain factors and countries pay more attention to the role of G20 in international economic affairs. China expects the summit to continue to work on maintaining growth and promoting stability, send a message of confidence in the world economy and provide impetus to the global economic governance. China hopes efforts are especially made in the following areas:
First, highlight the spirit of G20 of helping each other in times of adversity and the win-win partnership. Countries should first of all run their own affairs well and then strengthen macroeconomic policy coordination and cooperation on the basis of respecting each other's national circumstances and development stages, make their policies support and complement each other and achieve common development.
Second, join hands to handle the major and pressing international economic issues. Of the three objectives of strong, sustainable and balanced growth of the world economy established by the G20, the most important one at present is to achieve strong growth and strive to maintain the momentum of world economic recovery. Parties should discuss the issues of developed countries' sovereign debt, fluctuations in commodity prices and turmoil in the international financial market in a constructive and cooperative manner.
Third, promote the building of a fair, equitable, inclusive and well-organized international financial system. It is important to advance the reform of international financial governance, implement the IMF's 2010 quota and governance reform program, increase the representation and voice of developing countries in international financial institutions, improve the international monetary system, strengthen financial supervision, enhance the development and poverty reduction functions of financial institutions and make the financial system truly rely on, serve and promote the development of the real economy.
Fourth, promote the healthy and stable development of international trade. It is necessary to implement the commitment of the G20's successive summits to opposing trade protectionism, push foward the Doha Round of negotiations and create a free and open, fair and equitable global trade environment. China supports the G20's discussion about the global value chain and hopes such discussion helps countries to correctly understand the global trade and developing countries to participate more in the global value chain and achieve common development.
Fifth, continue to make development a permanent topic for discussion of the G20. China always advocates that the development of developing countries is indispensable to the strong, sustainable and balanced growth of world economy. This summit should convey the positive message that the G20 attaches importance to the development issue and is committed to helping developing countries to achieve development and creating a favorable external environment for the development of developing countries.
Cui stressed that China has always been actively involved in the G20's cooperation to handle the international financial crisis and strengthen global economic governance, played a constructive role and made important contributions since the start of the G20 summit process. In the current world economic situation, China is working to accelerate the transformation of its development mode, adjust its economic structure and maintain the good momentum of stable and rapid economic development, which itself is an important contribution to the world economic stability and growth. China has confidence to continue to run its own affairs well and is willing to work with the international community, including the G20, to boost the strong, sustainable and balanced growth of world economy.
Zhu Guangyao said that the G20 summit in Los Cabos is a significant event. To prepare for the summit from the fiscal policy perspective, the finance ministers and central bank governors of G20 members held their last meeting prior to the summit in Washington, the
First, it was pointed out during the meeting that the global economy faces significant downside risks despite the slow and mild recovery. In particular, the European sovereign debt issue has become more severe. G20 members should continue to strengthen cooperation, increase investment in infrastructure, promote growth, expand employment, improve social inclusiveness, take necessary measures to cope with the impact of high oil prices and work together to oppose protectionism.
Second, it was agreed to develop the Los Cabos action plan on the basis of the G20 Cannes action plan and submit the Los Cabos action plan to this summit in order to cope with the serious risks faced by the global economy and boost economic recovery and growth. Lately, related G20 parties discussed the following main content of the action plan: the Euro zone adopts more measures to address the sovereign debt and banking sector issues and boost economic growth; major developed economies continue to promote their fiscal consolidation measures. Emerging markets take steps to prevent inflation risks and avoid rapid decline of economic growth rate. Countries should continue to advance structural reform according to their national circumstances, jointly oppose trade and investment protectionism and strive to narrow the development gap.
Third, it was consented to take necessary measures to ensure the global financial stability. Related countries pledged to provide the IMF with another over US$430 billion in addition to the 2010 quota increase of the IMF. It was also stressed that the IMF will completely fulfill the 2010 governance and quota reform commitment by 2012.
Fourth, it was pledged to continue to advance the financial sector reform and strengthen regulation of the systemically important financial institutions, the shadow banking system and the OTC derivatives market. It was reiterated to set up high-quality unified global accounting standards and exchange tax information comprehensively.
Fifth, it was reaffirmed efforts should be made to reduce the impact of excessive volatility of commodity prices on economic growth, improve the energy market transparency and functions, study how to add green growth and sustainable development policies on the structural reform agenda and continue with the climate change financing.
Zhu said that China believes the communiqué of the meeting reflected the position of G20 members in a relatively comprehensive and balanced way and made important preparations for the Los Cabos summit from the policy perspective.
Zhu Jun introduced China's position on the IMF's capital increase and the international financial sector reform.
First, the IMF's capital increase and reform. The G20 ministers' meeting and the International Monetary and Financial Committee meeting on April 20 reached agreement upon the new funding of over US$430 billion to the IMF. This summit will continue to discuss the capital increase of the IMF. China supports the IMF to play an important role to address the European debt issue. China will not be absent from the international community's consensus-based capital increase to the IMF and will play an active role to increase resources of the IMF. The summit will continue to promote the implementation of the 2010 decision on quota and governance reform of the international monetary and financial system, discuss the surveillance and reform of the IMF and consolidate the IMF's multilateral and bilateral surveillance to further extend the coverage of global economic and financial stability.
Second, the international financial sector reform and inclusive finance. As required by the G20, the IMF, the Council for Financial Stability and the international standard-setting bodies have raised a series of reform proposals and gained positive progress of formulating standards and regulations. The current focus is gradually shifting from developing standards to promoting the implementation. With regard to inclusive finance, the host country Mexico has listed it as a key topic for discussion of the summit and stressed the importance of providing financial services for the disadvantaged groups and SMEs through financial innovation and promoting financial education and consumer protection. China will continue to take an active part in the discussions on the financial sector reform and inclusive finance and learn from the global best practices in order to boost the development of domestic financial sector and inclusive finance.