Executive Intelligence Review


Xi Tells G20, ‘Risks Are Rapidly Building Up, World Economy Facing Another Historical Choice’

Dec. 4, 2018 (EIRNS)—In his Nov. 30 address to the G20 summit meeting in Buenos Aires, Chinese President Xi Jinping warned the gathered world leaders that the causes of the 2008 global financial crisis have not been resolved, and that “the world is facing another historical choice.” Xi’s very first words delivered this message:

“It’s been ten years since the global financial crisis broke out and the first G20 Summit was convened. Today, the global economy, while maintaining growth on the whole, is still not free from the underlying impacts of the crisis. Old growth drivers are yet to be replaced by new ones. Various risks are rapidly building up. The new round of technological revolution and industrial transformation are triggering profound changes, the wealth gap keeps widening, and social contradictions are growing. The world economy is facing another historical choice.”

The Chinese President said that there had been progress since the 2008 crisis, and that

“the ever growing and expanding industrial chain, value chain and supply chain have boosted the flow of production factors across the world and led several billion people out of poverty and toward prosperity”

—most of which was achieved by China—and that

“countries are increasingly becoming a community with shared interests, shared responsibilities and a shared future. Going forward, win-win cooperation is the only choice for us, be it in good times or bad. This is dictated by the law of economics, and it is in keeping with the development of human history. Facing various challenges, we must have a stronger sense of urgency, be rational in approach and look beyond the horizon. We must fulfill our responsibility and steer the global economy in the right direction.”

Xi then laid out specific proposals, forcefully emphasizing the role of innovation and technology:

“We should stay committed to innovation and create new momentum for growth. The global economy is embracing the trend of digital transformation, and the new round of industrial revolution will reshape human society in profound ways. We should encourage innovation and leverage the role of the digital economy in growing the real economy... We should give priority to achieving development through fully tapping our innovation potential.... I propose that the G20 carry out an in-depth study on the application and impact of new technologies on a priority basis to explore new thinking and new ways of cooperation in this area.”

Xi stressed that this is the basis for creating win-win cooperation globally:

“We should stay committed to win-win cooperation to promote inclusive global development ... [and] endeavor to deliver a sense of fulfillment, happiness and security to our people We should continue to support Africa’s development by helping Africa with its infrastructure and connectivity building and new industrialization.”

Xi concluded that

“In the years since the global financial crisis, China has contributed over 30% of global growth. China is firm in its resolve to eradicate poverty. Our goal is to eliminate absolute poverty as currently defined by 2020, and we have every confidence to meet this target.”