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Thursday, September 15, 2016

G20 Blueprint to Unleash Global Growth Potential, China's Focus

China Focus: G20 Hangzhou blueprint to unleash global growth potential

Photo taken on Aug. 31, 2016 shows a LED light show along the Qiantang River in Hangzhou, capital of east China's Zhejiang Province. The 11th G20 summit was held in Hangzhou from Sept. 4 to 5. (Xinhua/Jin Liwang)

HANGZHOU, Sept. 14 (Xinhua) -- At a factory belonging to Hangzhou Wahaha Group, the beverage company's self-developed robots are busy loading pallets with products.

Founded in 1987 in Hangzhou City, Zhejiang Province, the firm has invested heavily in technology.

It has been involved in industrial robotic research and development since 2011. The company had 30 robots on its factory floors by the end of 2015, and another 100 will be installed this year.

"From receiving orders, to quality control and payment, so many procedures have been digitalized, cutting labor and improving efficiency," chairman Zong Qinghou said.

Technology will support the sustainable development of enterprises, said Zong. The company is currently expanding its business scope from beverages to health products and equipment manufacturing.

Companies like Wahaha are ready for the favorable policies promised by the government, after leaders at the Group of 20 summit, which was held in Hangzhou on Sept 4-5, agreed to improve mid-to-long term growth potential through innovative growth.

According to the G20 Blueprint on Innovative Growth, adopted at the event, it was agreed that governments should strive to create favorable environments for creativity and development, and entrepreneurship, and science and technology should be supported as they would lead to innovative growth and job creation.

Cao Yuanzheng, chief economist with the Bank of China, said that in the past eight years, slow economic recovery after the 2008 financial crisis has highlighted the necessity to shift from fiscal and monetary measures to innovation.

The economic growth cycle is closely related to scientific breakthroughs. "Scientific revolution, which creates new industries and new products, can change the way we produce and live, hence, it has the potential to fuel long-term economic growth," he said.

Huang Wei, researcher on global governance with the Chinese Academy of Social Sciences, agreed that the world economy needs structural reform to overcome development obstacles and unleash growth impetus.

"To stimulate innovation, governments should create a favorable environment through structural reform," Cao said.

Structural reform was also discussed during the G20 summit.

According to the G20 Blueprint on Innovative Growth, nine priority areas of structural reform were identified: the promoting of trade and investment openness; advancing labor market reform, educational attainment and skills; encouraging innovation; improving infrastructure; promoting fiscal reform; promoting competition and an enabling environment; improving and strengthening the financial system; enhancing environmental stainability; promoting inclusive growth.

Meanwhile, 48 guiding principles for these priority areas were endorsed by G20 members. Additionally, a common set of core indicators, comprising policy and outcome elements, was also endorsed to help monitor and assess the progress and effectiveness of G20 members' structural reform measures as well as their ability to address structural challenges.

"On the basis of the nine priority areas, different countries can choose their priorities according to their own national conditions," said Huang Wei.

"The indicators evaluate countries' economic performances in different aspects, which will push countries to come up with effective reform measures," she said, adding that the system will likely deliver results later this year.


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