President Xi Introduces ‘Hangzhou Consensus” to the International Press

Speaking at a press conference at the conclusion of the exciting Hangzhou G20 Summit, President Xi presented what he labeled the “Hangzhou Consensus,” by means of which China has effectively shifted the policy orientation of the G20 from that of a crisis-response “talk shop,” into an instrument that can provide a “new path of economic development” for the world based on a push for scientific and technological innovation. A G20 Blueprint on Innovative Growth was adopted unanimously by the 20 nations.

“All have agreed on the need for a peaceful and stable environment,” Xi said. The parties also agreed to coordinate more fully in the area of fiscal and monetary as well as in the area of structural reform. “But we can no longer rely on fiscal and monetary policy alone” to deal with the crisis, he said. “We envision an all-dimensional, multi-tiered and wide-ranging approach to innovation which is driven by innovation in science and technology, but goes beyond it to cover development philosophy, institutional mechanisms and business models, so that the benefits of innovation will be shared by all,” Xi said.

“With a focus on structural reform, we outlined the priority areas, guiding principles and a set of indicators to fundamentally remove the bottlenecks to economic growth,” Xi said. “In the area of new industrial revolution we agreed to vigorously develop advanced and high-end manufacturing to spearhead the fourth industrial revolution. We will encourage the intensive use of internet technologies across the economy and society to embrace a new area of connection between things and among people. This blueprint which encapsulates our shared vision, plan of action and institutional safeguards will open up a new horizon for growth,” Xi said.

In addition, he said, “we have resolved to improve global economic and financial governance in order to enhance the resilience of the world economy.” He also noted that new SDRs would be issued in RMB, which “will contribute to the world economy.” “A joint test-round of global and regional financial safety nets will be coordinated to build a strong bulwark against crises,” Xi said. He also said that there was a general agreement to crack down on tax evaders and to enhance oversight of the taxation process, as well as to initiate an international effort to deal with corruption. This would include, he noted, cooperation on not allowing safe havens for corrupt officials and tax evaders.

The G20 would also make efforts to revitalize trade and investment and would work to “support the multilateral trading regime.” “This is a milestone of the G20 toward long-term governance,” he said. Three new innovations had been made in the G20 at Hangzhou, Xi said. Firstly, development has been prominently featured in this macro-economic setting; secondly, the G20 has adopted a real action plan; and thirdly, it is the first time that the group has expressed direct support for industrialization in Africa and the less developed countries. “The G20 needs to better play its role in enhancing cooperation,” Xi said. “And it will be transformed from its previous concentration on short-term policies to balancing short-, medium- and long-term policies. All have agreed that this transformation will affect all the members and they will continue to support the new focus.”

In conclusion, he thanked the other countries, the guest countries from the developing sector, the international institutions, the B20 and the T20, for their efforts in making this summit a great success. And he thanked the media for covering the event.