G20 summit to inject fresh impetus into global policy coordination
The Group of 20 (G20) summit to be held in eastern China's Hangzhou city will offer an opportunity to inject fresh impetus into the global policy coordination process, Standard Chartered CEO Bill Winters has said.
"I believe that under China's leadership through the G20 presidency and with joint and coordinated efforts of G20 members on multiple fronts, there is an opportunity for fresh impetus to be injected into the global policy coordination process to support growth, job creation and a more secure world," Winters said.
In a recent exclusive interview with Xinhua, Winters also expected to see progress made in multiple G20 priorities, including financial regulation, global economic governance, the digital economy and green finance.
G20 Hangzhou Summit
Winters, who assumed his post in June 2015, said he was honored to participate in and contribute to the Business 20 (B20) Financing Growth Taskforce as co-chair of the taskforce.
"The taskforce is well-placed to support the G20's growth ambitions by helping to source the financing that is needed to support global trade and investment flows and, more specifically, the world's infrastructure and clean energy requirements," he said.
China adopts "Toward an Innovative, Invigorated, Interconnected and Inclusive World Economy" as the theme of the summit to be held on Sept. 4-5.
He said the theme reflects the shared aspiration of G20 members to steer the world economy toward a more sustainable path. A key success of the G20 in the aftermath of the financial crisis has been to significantly strengthen the resilience of the global financial system.
"Now we need to focus on ways in which to unlock investment to support the huge need for infrastructure finance across the G20 and to fund clean energy technologies that enable us to transition to a low-carbon world," he added.
Winters also mentioned Hangzhou is indeed a beautiful city that combines a long and colorful history with a modern vision.
"Given its steady development in recent years, the city has demonstrated great economic vitality and a great capacity for innovation," he said, adding that Standard Chartered established a branch in Hangzhou in 2008 to support its clients in the city and across eastern China.
Chinese economy, Chinese companies
Speaking of the Chinese economy, Winters said China has shown that it is able to manage the transition from an export-led, manufacturing economy to a consumption-based, services economy, executing its strategy with great skills and care.
He said that China has recognized the importance of investing not only for the future of its citizens, but also for that of its neighbors and trading partners.
The establishment of the Asian Infrastructure Investment Bank and the Belt and Road initiative are two very clear examples of China's vision for the future, he said.
The Belt and Road initiative, or the Silk Road Economic Belt and the 21st Century Maritime Silk Road, would connect Asia and Europe's major economic powers on land, as well as via the sea, and is aimed at fostering economic collaboration in the area.
Winters also said Chinese companies have grown very rapidly in recent years, and are playing an increasingly important role not only in China but also worldwide.
"Many of them are pioneers for innovations in the service sector, including Alibaba, the world's largest retailer with 400 million Chinese customers, and Wanda, China's largest commercial property company and cinema operator. Companies like these are not only meeting consumer needs today. They are building scale for the future," he said.
Global economic trends
Looking at global economic trends, Winters said: "There are significant risks to the global economy. Sluggish global growth makes it harder for the world economy to cope with shocks."
Another challenge is the labor force participation rate, which is the lowest in 40 years, and continues to decline, he added.
"While Brexit is giving rise to a period of risk aversion, we expect markets -- especially in Asia -- to overcome short-term pressures. We anticipate the low interest rate environment in the U.S. will continue and that the outlook for rising oil prices is favorable," he continued.
Winters said continued low interest rates in the United States should be positive for sentiment toward emerging markets.
He believed developments in China will largely determine how emerging markets fare in the second half of the year. Earlier market expectations of a China hard landing have eased, which has helped emerging markets in general.
"Real activity has been stable so far, and we expect China's growth this year to be robust, at 6.8 percent," he said.
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