— President Hu Jintao Delivers an Important Speech at the Seventh G20 Summit (abstract)

(Los Cabos, Mexico, June 18, 2012)

It gives me great pleasure to join all of you hear at the Los Cabos. First of all, I wish to express sincere thanks to President Felipe Calderon and the government of Mexico for the good preparation and thoughtful arrangements you have made for this summit.

In his speech, Hu pointed out that since the summit in Cannes, the global economy has maintained the momentum of recovery. However, unstable and uncertain factors remain outstanding; the deep-rooted contradictions resulting in the international financial crisis have not yet been eliminated; and new risks are accumulating. In such circumstances, the international community must consolidate the outcome of addressing the international financial crisis and maintain economic and social stability and development. At the same time, the international community must seek progress, explore new ideas, take new initiatives, solve new problems, and promote the strong, sustainable and balanced growth of global economy.

First, the international community should unswervingly promote the stabilization and recovery of world economy. At present, the main tasks of the G20 members remain to maintain growth, promote employment, and ensure stability. The international community should, in a spirit of helping each other and seeking win-win cooperation, consolidate and strengthen the hard-won recovery. The international community should continue to support some European countries to solve the debt problems in a constructive and cooperative manner and strive to get these economies back onto the track of stable growth at an early date. The international community should strengthen macroeconomic policy coordination and take full account of the national circumstances and reasonable concerns of each country. The international community should promote technological progress and innovation, foster emerging industries, and provide driving force for the continuous growth of world economy.

Second, the international community should unswervingly deepen the reform of the international financial system. The priority is to implement the 2010 quota of the International Monetary Fund (IMF) and governance reform packages, and to provide long-term and stable funds resources. The international community should increase the representation and voice of developing countries, strengthen international financial regulation. We should improve the international monetary system and establish an international reserve currency system with stable value, rule-based issuance and manageable supply.

Third, the international community should stand firm to promote the healthy development of international trade. The international community should jointly create a free, open, fair and equitable global trading environment and oppose all forms of protectionism. The international community should maintain the openness and inclusiveness of various bilateral and regional free trade arrangements, and maintain and strengthen the multilateral trading system. The international community should pay attention to the value chain issue in international trade and look at the so-called trade imbalances in a more objective and balanced manner.

Fourth, the international community should unswervingly push forward the cause of development. The international community should pay more attention to the spillover effects of the policies and measures taken by some countries in addressing the international financial crisis on developing countries, and push for substantial measures and concrete results in boosting the general prosperity and progress of developing countries and narrowing the gap between the North and the South. G20 members should strengthen cooperation with the United Nations, and enhance the functions of the international financial institutions in promoting development and reducing poverty. The international community should strengthen support to developing countries in foreign trade and increase investment in food security, infrastructure and other development issues.

Fifth, the international community should stand firm to advocate sustainable development. The international community should actively develop energy-saving and environmentally friendly industries, and build a resource-saving, environmentally friendly society. The international community should adhere to the principle of common but differentiated responsibilities and support the parties to choose the road of sustainable development in line with their national conditions. The international community should avoid new green trade barriers and firmly support the United Nations as the main channel in the field of sustainable development.

Hu pointed out that since the beginning of the year, China has continued to strengthen and improve macroeconomic regulation and has maintained the general stability in economic operation. China will firmly follow the theme of scientific development, accelerate the transformation of economic development mode, maintain stable and rapid economic development and the basic stability of price level in general, and maintain social harmony and stability.

Hu stressed that the world economy is in a critical transitional period. There is a long way to go to improve global economic governance. The international community should greatly cherish the role and impact of G20 and firmly grasp the trend of world economic development. The international community should work together in a spirit of solidarity, coordination and cooperation to jointly overcome the risks and challenges on the road ahead and promote the development and prosperity of the world.