ROUND-TABLE MEETING: Chinese President Xi Jinping attends the Ninth G20 Summit in Brisbane, Australia, on November 15 (XINHUA)
Despite a moderate GDP growth, China could further benefit the world economy with a healthy and robust economic structure, according to Xiong. For example, China could increase imports from other economies by boosting domestic demand and develop a low-carbon economy to cope with climate change.
In Brisbane, Xi told G20 leaders that following various domestic reforms, the Chinese economy will maintain its momentum for powerful, sustainable and balanced growth, and will provide the world with greater demand as well as increased market, investment and growth opportunities. The biggest contribution that China can make to the world economy is keeping its own growth on track and its markets open, Xi stressed.
Furthermore, innovation has been increasingly valued by the Chinese leadership. Xi said at the summit that innovation is an important driving force for sustainable growth.
In the last year, China has made strides on deepening reform and adjusting economic structure for steady growth, enhancing China's confidence for participating in global governance as the powerhouse of world economic growth," Xiong said.
Increasing infrastructure investment is a crucial aspect of the world's growth strategies, which G20 leaders endorsed at the summit. The Global Infrastructure Initiative, a multi-year work program, aims to lift quality public and private infrastructure investment as well as create job opportunities and improve productivity.
To support the implementation of the Initiative, G20 leaders also agreed to establish the Global Infrastructure Hub with a four-year mandate.
Chen Fengying, a researcher at the China Institutes of Contemporary International Relations (CICIR), pointed out that the topic of infrastructure investment had been discussed at both this year's Asia-Pacific Economic Cooperation Leaders' Meeting in Beijing and the G20 summit.
Leaders are aware that infrastructure is crucial to growth for not only the Asia-Pacific region but for the entire world, Chen said. In particular, many countries face difficulties financing infrastructure construction, which will limit further development in the field. Chen estimated that by the end of 2030, there would be a shortfall of $70 trillion in funds needed for infrastructure.
Establishing the Global Infrastructure Hub will promote coordination and share knowledge between governments, private sectors, development banks and other international organizations, according to Chen.
However, Xiong noted that the hub cannot function as a direct investor or a decision-making body, and its actual effect is yet to be tested.
In Xiong's view, China has set an example in terms of promoting cross-border infrastructure investment.
China has proposed strengthening connectivity, especially in terms of infrastructure investment, on many international occasions since 2013, which has been met with a positive response from many developing countries.
Proposed by China, 21 Asian countries signed the Memorandum of Understanding on Establishing the Asian Infrastructure Investment Bank (AIIB) in Beijing on October 24. The document specifies that the authorized capital of the AIIB will be $100 billion and the initial subscribed capital is expected to be around $50 billion. The AIIB will be an inter-governmental regional development institution aiming to offer financial aid for infrastructure development along the China-initiated Silk Road Economic Belt and 21st Century Maritime Silk Road across the Asian and European continents.
In July, China together with other four BRICS countries—Brazil, India, Russia and South Africa—agreed to establish the New Development Bank at the Sixth Summit of BRICS countries in Fortaleza, Brazil. The new bank aims to finance infrastructure and sustainable development projects in BRICS and other emerging and developing economies. It will have an initial authorized capital of $100 billion.
In addition, Xi on November 8 announced that China will contribute $40 billion to set up the Silk Road Fund at a dialogue meeting on strengthening connectivity and improving cooperation in the country's neighborhood.
At the Brisbane summit, all G20 member countries again urged to implement the IMF's 2010 Quota and Governance Reform. Leaders said in the communiqué that they are deeply disappointed with the continued delay in progressing the IMF quota and governance reforms agreed to in 2010 as well as the 15th General Review of Quotas, including a new quota formula.
If the IMF's quota can be implemented, emerging economies including China will expand their rights in the organization.