Global leadership critical to restructuring: Expert
China is poised to host the annual G20 summit in Hangzhou on Sept. 4-5, an occasion for strengthening international economic cooperation amid sluggish recovery worldwide. The upcoming summit is promoting the theme of "an innovative, invigorated, interconnected and inclusive world economy," reflecting China's emergence to take a leading role in the current economic revival.
The leadership that China is assuming is backed by its economic capacity; it has become the second largest economy, a quarter of the world total.
Economic restructuring is the Chinese solution to defy global downturn pressures. By carrying out structural reform, China aims to phase out industries and sectors characterized by high energy and labor use and high pollution.
While everyone seems to be applauding this top-down reform effort, there are also economists who believe such a reform, which aims at upgrading whole industries, should be given an international context – like everything else.
Einar Tangen, U.S. economic and political affairs commentator, is among those arguing that the economic restructuring in China is only as good as how the rest of the world regards and needs it.
"I don't see how China can go alone with internal restructuring if the rest of the world doesn't need it," Tangen told a recent symposium on the G20 summit. The way out is that China should make the world aware that what it is striving for has a positive global impact, and then taking a stronger leadership role for the global recovery.
"It's important that China take a leadership role to protect your jobs and future of your children," Tangen said."What China has to gain and what the world has to gain from the G20 are exactly the same – a way to replace the failing post-WWII U.S.-led unilateral leadership. China must bring in resources and ship out value-added goods, not only on a regional basis, but also on a global scale."
However, he clarified that, although China's role in global governance will expand on par with its economic competence, it still would not challenge American global dominance, which covers far more areas than merely the economic front.
He believed that China's wisdom and vision based on its own experience would enlighten crisis-stuck Europe and beyond.
"China's ability to get where it is today is different from every other country. Looking back at the trajectory where it was expected to be today, China has exceeded that," he added.
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