By He Yin
The more critical the global situation is, the more world leaders need to look beyond the horizon and steer the world development in the right direction.
Five years ago, against the backdrop of the rising protectionism, Chinese President Xi Jinping delivered a keynote speech on how to view and promote economic globalization at the 2017 annual meeting of the World Economic Forum (WEF), providing important guidance on propelling the global economy moving in the right direction.
At present, as the protracted COVID-19 pandemic is still plaguing the world, countries around the world need the guidance of wise thinking for realizing steady recovery of the world economy and jointly creating a better post-COVID world.
On Jan. 17, Xi delivered a special address at the 2022 WEF virtual session, profoundly expounding on fundamental solution to steady global economic recovery.
“In the context of ongoing COVID-19 response, we need to explore new drivers of economic growth, new modes of social life and new pathways for people-to-people exchange, in a bid to facilitate cross-border trade, keep industrial and supply chains secure and smooth, and promote steady and solid progress in global economic recovery,” Xi said in his special speech delivered at the 2022 WEF virtual session in Beijing.
His remarks have fully demonstrated China’s sense of responsibility as the world’s second largest economy.
The world economy has been severely impacted by the COVID-19 pandemic. As inflation, debt, energy, and supply chain crises intertwine with each other, global economic recovery shows clear signs of uncertainty and imbalance.
The World Bank Group lowered its projection of global economic growth for 2021 and 2022 in its latest Global Economic Prospects by 0.2 percentage point from its forecast made in June 2021.
“The global economic recovery is facing significant headwinds amid new waves of COVID-19 infections, persistent labor market challenges, lingering supply-chain challenges and rising inflationary pressures,” pointed out the United Nations World Economic Situation and Prospects (WESP) 2022 released on Jan. 13.
In order to promote steady world economic recovery, countries around the world need to correctly grasp the trend and governance of economic globalization.
“Though countercurrents are sure to exist in a river, none could stop it from flowing to the sea. Driving forces bolster the river’s momentum, and resistance may yet enhance its flow. Despite the countercurrents and dangerous shoals along the way, economic globalization has never and will not veer off course,” Xi said at the 2022 WEF virtual session, using a river rushing forward toward the sea as a vivid metaphor for the irresistible trend of economic globalization.
To facilitate steady recovery of the world economy, countries also need to properly understand the dialectical relationship between macro policies and micro policies. Xi has made targeted suggestions in this regard at the 2022 WEF virtual session.
Major economies should see the world as one community, think in a more systematic way, increase policy transparency and information sharing, and coordinate the objectives, intensity and pace of fiscal and monetary policies, so as to prevent the world economy from plummeting again, Xi pointed out.
“Major developed countries should adopt responsible economic policies, manage policy spillovers, and avoid severe impacts on developing countries. International economic and financial institutions should play their constructive role to pool global consensus, enhance policy synergy and prevent systemic risks,” he said.
The opening of the 2022 WEF virtual session coincided with the release of China’s economic data in 2021, which showed that the country’s gross domestic product expanded 8.1 percent year-on-year last year.
With sound overall growth momentum, the Chinese economy injects important impetus into steady recovery of the global economy.
While advancing high-quality development, China has remained steadfast in expanding high-standard opening-up, aiming to share more of its development dividends with various countries and achieve mutual benefit and win-win results.
The beginning of 2022 has witnessed many heartening stories of mutual benefit and win-win results, including overseas investment institutions’ further exploring the Chinese market, the Regional Comprehensive Economic Partnership (RCEP) agreement’s entry into effect, China’s further shortening its negative lists for foreign investment, and the continuous expansion of China’s “circle of friends” in the joint construction of the Belt and Road Initiative, which will form a strong driving force for steady recovery of the global economy.