Outlook · First Learning | Strive to Promote International Macroeconomic Policy Coordination | International | Macroeconomy
Adhere to the basic principle of putting oneself first, using it for oneself, and making contributions, and effectively enhance the ability to promote international macroeconomic policy coordination
◇ Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at the core has made systematic plans for my country's participation in and promotion of international macroeconomic policy coordination
On the new journey, we should accurately grasp the basic principles of promoting international macroeconomic policy coordination, maintain strategic composure, actively respond, and promote the formation of a win-win cooperation pattern where growth among countries mutually promotes and complements each other. We should advocate international multilateral development cooperation and continuously strive to promote better development of the world economy
Wen | Wang Derong
On May 24, President Xi Jinping was invited to attend the opening ceremony of the Second Eurasian Economic Forum of the Eurasian Economic Union by video and delivered a speech by Li Xueren.
Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has complied with the general trend of world economic development, grasped the profound and complex changes facing the development environment in my country's new development stage, and emphasized that my country must actively participate in international macroeconomic policy coordination and promote countries to strengthen international macroeconomics. Economic policy coordination, the report of the 20th National Congress of the Communist Party of China proposed for the first time "promoting international macroeconomic policy coordination".
On the new journey, we must follow the strategic deployment of the Party Central Committee with Comrade Xi Jinping at the core, adhere to the basic principles of focusing on me, using me, and making contributions, and effectively enhance our ability to promote international macroeconomic policy coordination.
I am the main shaping mechanism
At present, it is necessary to adhere to the principle of putting ourselves first and actively shape the mechanism for promoting international macroeconomic policy coordination in China.
——Accurately grasp the changes in the international and domestic situation, and actively participate in and promote international macroeconomic policy coordination.
He pointed out, "This change is not limited to a moment or a country or a region, but is a profound and grand change of the times."
Nowadays, the world economy is undergoing a period of profound adjustment, with significant increases in operational risks and uncertainties, which is an important feature of the global upheaval. Specifically, it is manifested as: insufficient overall driving force of the world economy, weak effective demand, rising protectionism and unilateralism, setbacks in economic globalization, impacts on multilateralism and free trade systems, intensified trade and investment disputes, impacts on global industrial structure and financial stability, significant increase in risks and uncertainties in world economic operation, lack of confidence in international investment, and so on.
The COVID-19 has wreaked havoc around the world and has had a profound impact on the world economy. The global industrial chain and supply chain have been impacted. The gap between North and South, recovery differentiation, development fault, technological gap and other issues have become more prominent. Unilateralism, protectionism, and bullying are on the rise, economic globalization is facing a backlash, and the risks and uncertainties facing the world economy are intensifying. Therefore, the necessity of strengthening international macroeconomic policy coordination is very prominent.
From a domestic perspective, China's economy has shifted from a stage of high-speed growth to a stage of high-quality development. High quality development refers to the development that can effectively meet the growing needs of the people for a better life, reflects the new development concept, and is driven by innovation as the primary driving force, coordination as the endogenous characteristic, green as the universal form, openness as the necessary path, and sharing as the fundamental goal.
The report of the 20th National Congress of the Communist Party of China proposed that "high-quality development is the primary task of comprehensively building a socialist modernized country", emphasizing the need to "promote the effective improvement of the economy in terms of quality and reasonable growth in terms of quantity". This fully reflects the firm determination of our party to promote high-quality development.
To promote high-quality development on the new journey, it is necessary to focus on building a new development pattern with the domestic circulation as the main body and the domestic and international dual circulation promoting each other. We are required to adhere to an open and cooperative domestic and international dual circulation, strengthen open cooperation, and more closely connect and interact with the world economy, improving the efficiency and level of the domestic circulation.
Therefore, on the basis of tapping into the potential of domestic demand, we should better connect the domestic and international markets, make better use of both domestic and international markets and resources, and promote the common development of the Chinese economy and the world economy. At the same time, it also requires us to actively participate in and promote international macroeconomic policy coordination, firmly defend China's sovereignty, security, and development interests, improve our ability to respond to complex changes, and create a favorable external environment for China to achieve high-quality development.
——Strengthening participation and promoting top-level design of international macroeconomic policy coordination.
On November 12, 2013, the Third Plenary Session of the 18th Central Committee of the Communist Party of China passed the Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Comprehensively Deepening Reform, proposing to "form a mechanism for participating in international macroeconomic policy coordination and promote the improvement of the international economic governance structure.". On October 31, 2019, the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China passed the Decision of the Central Committee of the Communist Party of China on Several Major Issues Concerning Adhering to and Improving the Socialist System with Chinese Characteristics, Advancing the Modernization of the National Governance System and Governance Capacity, emphasizing the need to "promote the establishment of an international macroeconomic policy coordination mechanism.". On October 29, 2020, the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China passed the "Proposal of the Central Committee of the Communist Party of China on Formulating the Fourteenth Five Year Plan for National Economic and Social Development and the Long Range Objectives for 2035", which further proposed to "strengthen international macroeconomic policy coordination, do a good job in cross cycle policy design, improve countercyclical adjustment capabilities, promote economic aggregate balance, structural optimization, and internal and external balance.".
In addition, on May 5, 2015, the Central Committee of the Communist Party of China and the State Council issued several opinions on building a new open economic system, which clearly defined "mechanisms for participating in international macroeconomic policy coordination and promoting the continuous improvement of international economic governance structure" as the overall requirements for building a new open economic system. The Central Committee of the Communist Party of China and the State Council also issued the "Opinions on Forming a Mechanism to Participate in International Macroeconomic Policy Coordination and Promote the Improvement of International Economic Governance Structure" in 2018, making comprehensive arrangements for China's participation in international macroeconomic policy coordination mechanisms. The report of the 20th National Congress of the Communist Party of China clearly states: "China adheres to the correct direction of economic globalization, promotes trade and investment liberalization and facilitation, promotes bilateral, regional and multilateral cooperation, promotes international macroeconomic policy coordination, jointly creates an international environment conducive to development, and jointly cultivates new drivers of global development." This provides a direction for China to better participate in international macroeconomic policy coordination and promote international macroeconomic policy coordination on the new journey.
——Strengthen institutional construction and improve the coordination mechanism of domestic macroeconomic policies.
Good coordination of domestic macroeconomic policies is the fundamental condition for carrying out international macroeconomic policy coordination, and it is also an important prerequisite for firmly grasping the initiative to participate in international macroeconomic policy coordination. It is necessary to establish a scientific and efficient decision-making mechanism, improve a more clear and effective division of labor and cooperation system, make good use of policy tools such as finance, currency, and structural reform, and coordinate the efforts of the government, enterprises, industry associations, and other parties to gradually form a stable mechanism for China to participate in international macroeconomic policy coordination. This will fully demonstrate the political advantages of the Party's leadership and China's socialist system, fully mobilize various social forces, continuously stimulate China's internal driving force and vitality to participate in the construction of international macroeconomic policy coordination mechanisms, and enhance the conscious action of various departments and fields to participate in the construction of international macroeconomic policy coordination mechanisms.
Strengthening cooperation for our use
Currently, it is necessary to adhere to the principle of serving our own needs and fully utilize existing mechanisms and platforms to promote international macroeconomic policy coordination.
——Strive to create an international macroeconomic policy coordination environment that seeks consensus.
General Secretary Xi Jinping pointed out: "A good and stable external environment is an important prerequisite for the development of all countries, especially for emerging market countries and developing countries." Human beings live in the same global village, living in the same time and space where history and reality meet, and have become a community with a shared future in which you have me and I have you.
The COVID-19 has caused a comprehensive impact on global production and demand. All major economic sectors have been hit hard at the same time, the operation of the global industrial chain supply chain has been blocked, and trade and investment activities continue to be depressed. In this situation, whether it is winning the ultimate victory in the global fight against the epidemic or promoting world economic recovery, the international community must unite and cooperate, jointly respond to the crisis test, and strive to create an international macroeconomic policy coordination environment that seeks consensus.
In this regard, General Secretary Xi Jinping pointed out that "major economies should establish a sense of community, strengthen the concept of systems, and enhance the transparency and sharing of policy information" and that "major developed countries should adopt responsible economic policies, control policy spillovers and avoid serious shocks to developing countries. International economic and financial institutions should play a constructive role in building international consensus, enhancing policy synergy and preventing systemic risks".
As the world's second largest economy, the largest trading country in goods, and a major foreign investment country, China has always adhered to the attitude of being responsible for both the Chinese economy and the world economy in formulating macroeconomic policies.
On the new journey, China will take more proactive actions to promote the strengthening of international macroeconomic policy coordination among various economies, and contribute to promoting the world economy to emerge from the shadow of crisis as soon as possible, and to promoting the transformation of world economic power, mode, and structural adjustment.
——Make full use of existing mechanisms and platforms to carry out work.
The United Nations, International Monetary Fund, World Bank, World Trade Organization and other international organizations provide important platforms and channels for international macroeconomic policy coordination. Regional organizations such as the Asia Pacific Economic Cooperation Organization and the Shanghai Cooperation Organization provide important platforms for China to participate in regional economic and trade affairs. After the 2008 international financial crisis, the G20 played an increasingly important role in coordinating international macroeconomic policies. To promote international macroeconomic policy coordination on the new journey, we should focus on participating in and promoting international macroeconomic policy coordination through multilateral mechanisms and platforms, and jointly build a wide range of development partnerships.
In terms of maintaining the authority and effectiveness of the multilateral system, we should firmly uphold the international system with the United Nations at its core, the international order based on international law, and the basic norms of international relations based on the purposes and principles of the United Nations Charter. We should support the United Nations in more effectively consolidating global consensus, mobilizing global resources, coordinating global actions, and playing a greater role in world peace and development. We should actively support the United Nations in reform, promote better adaptation of the United Nations to new requirements of global governance in terms of ideology, institutional structure, and operational mode, and better fulfill the responsibilities assigned by the United Nations Charter. We should also play a greater role in maintaining world peace and promoting common development.
At the same time, it is necessary to further strengthen coordination and cooperation with relevant parties within mechanisms such as the International Monetary Fund, World Bank, and World Trade Organization. Continue to promote the reform of international financial institutions, accelerate the implementation of the International Monetary Fund's quota and governance reform plan, and effectively reflect changes in the international landscape. We firmly support the multilateral trading system, actively support the necessary reforms of the World Trade Organization on the basis of fairness and justice, advocate that the reform of the World Trade Organization should uphold the core values and basic principles of the World Trade Organization, especially the development interests and policy space of developing countries, promote global trade liberalization and facilitation, improve trade dispute resolution mechanisms, make global trade more standardized, convenient, and open, and play a greater role in building an inclusive and open world economy.
In promoting macroeconomic policy coordination among the G20 countries, the role of the G20 as a multifunctional platform for equal dialogue, communication, and coordination among major economies in the world should be fully utilized. Strengthen macroeconomic policy coordination among developing countries, promote stable and far-reaching cooperation mechanisms among BRICS countries, and play a greater role in international platforms.
In terms of deepening regional and sub regional cooperation, we will actively promote new progress in APEC cooperation, deepen the spirit of the Asia Pacific family and the awareness of a community with a shared future, become a leader and promoter of an open world economy, continuously strengthen macroeconomic policy coordination among APEC members, enhance China's influence in regional economic and trade affairs, and enrich regional cooperation mechanisms based on the series of East Asian cooperation mechanisms and the Shanghai Cooperation Organization. At the same time, we will deepen and expand cooperation mechanisms with neighboring countries, strengthen bilateral and sub regional cooperation such as the Lancang Mekong River cooperation, and promote macroeconomic policy coordination effects in China's neighboring countries and regions through benefit sharing and policy communication.
——Make good use of major country cooperation as an important channel for international macroeconomic policy coordination, and strengthen bilateral consultation and cooperation mechanisms with major countries.
The formation of closer consultation and cooperation mechanisms among major powers can help achieve good results in international macroeconomic policy coordination.
Contribute and do what you can
Currently, it is necessary to adhere to the principle of making contributions and contribute more Chinese wisdom and strength to international macroeconomic policy coordination.
——Advocate and actively create new mechanisms and platforms to promote international macroeconomic policy coordination, providing useful supplements and improvements to existing mechanisms.
Jointly building the "the Belt and Road" is an initiative for development, cooperation and openness.
To realize this initiative, all parties should, within the framework of international cooperation in jointly building the "the Belt and Road", work together to address the challenges facing the world economy, create new opportunities for development, seek new impetus for development, expand new space for development, achieve complementary advantages, mutual benefit and win-win results, and constantly move towards building a community with a shared future for mankind.
Policy communication is the basis for co building the "the Belt and Road" countries to strengthen political mutual trust, carry out practical cooperation and deepen the integration of interests. Through policy communication, China actively builds a platform for the joint construction of the "the Belt and Road" initiative to align with the development strategies of various countries, and actively creates opportunities for the integrated development of regional economy and trade. In the new journey, China should play its role in promoting international macroeconomic policy coordination by promoting high-quality joint construction of the "the Belt and Road".
——Innovate ways and methods to promote international macroeconomic policy coordination.
In terms of innovating trade facilitation mechanisms and platform construction, we should focus on the strategic alignment of deepening mutually beneficial cooperation between China and neighboring countries, and vigorously promote the construction process of the Asia Pacific Free Trade Area. In actively promoting innovation in international major infrastructure investment and financing mechanisms, China has initiated the establishment of the Asian Infrastructure Construction Investment Bank and the BRICS New Development Bank. On the new journey, we should promote the two institutions to make greater contributions to the economic and social development of BRICS countries, emerging market countries, and developing countries.
In terms of structural reform policy coordination mechanism innovation, General Secretary Xi Jinping pointed out: "The world economy has entered a period of transformation of old and new kinetic energy. We need to find the right entry point and vigorously promote structural reform." On the new journey, we should actively promote all parties to accelerate the implementation of the United Nations 2030 Agenda for Sustainable Development and strengthen international macroeconomic policy coordination under the framework of the United Nations 2030 Agenda for Sustainable Development.
——Adhere to the international positioning of China as a developing country and act within our capabilities.
China has become the world's second largest economy, the largest trading country in goods, and a major foreign investment country. With the continuous improvement of China's comprehensive national strength, various countries are paying more attention to China's position in participating in international macroeconomic policy coordination, and their expectations for China are also increasing.
At this point, it is even more important to realize that China's basic national conditions, which are still in and will remain in the primary stage of socialism for a long time, have not changed, and its international status as the world's largest developing country has not changed. The per capita GDP of developed countries in the world is generally above 30000 US dollars, while China's per capita GDP has just exceeded 12000 US dollars, ranking around 70th among nearly 200 economies worldwide. The urbanization rate of China's permanent population in 2022 is 65.2%, while the urbanization rate in developed countries is generally around 80%. Compared with the technological level of developed countries, China's development still faces major technological bottlenecks, and the pattern of core technologies in key areas being controlled by people has not fundamentally changed.
The current world changes are unfolding in an unprecedented manner, and the great rejuvenation of the Chinese nation has entered a critical period. On the new journey, we should accurately grasp the basic principles of promoting international macroeconomic policy coordination, maintain strategic composure, actively respond, and promote the formation of a win-win cooperation pattern where growth among countries mutually promotes and complements each other. We should advocate international multilateral development cooperation and continuously strive to promote better development of the world economy.
