The global economy is facing a threat due to rising protectionism and risks from highly leveraged financial markets, Chinese President Xi Jinping said as a G20 summit began in Hangzhou on Sunday.
The global economy has arrived “at a crucial juncture” against the backdrop of sluggish demand, volatile financial markets and feeble trade and investment, Xi said in his opening speech.
“Growth drivers from the previous round of technological progress are gradually fading, while a new round of technological and industrial revolution has yet to gain momentum,” Xi said, according to Reuters.
Xi called on G20 countries to match their words with actions, in terms of policy moves to shore up global growth.
“We should turn the G20 group into an action team, instead of a talk shop,” he said.
G20 nations are set to agree in a communique at the end of the summit that all policy measures should be put to use to achieve solid and sustainable economic growth.
European Commission President Jean-Claude Juncker, meanwhile, urged Beijing to set up a mechanism to address the problem of industrial overcapacity.
“Overcapacity is a global problem but there is a particular Chinese element,” he said at a news conference.
Obama held talks with Xi on Saturday that ran late into the night.
He urged Beijing to uphold its legal obligations in the disputed waters of the South China Sea, and stressed US commitments to its regional allies.
According to a “fact sheet” on China-US relations issued on Sunday, the two sides agreed on a range of issues, including avoiding competitive currency devaluations, the report said.
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