China News Service, Beijing, October 23. Topic: Looking at the world from Financial Street: Green, multilateral, and technology add impetus to the post-epidemic economy
China News Agency reporter Liu Liang
The continuous spread of the global new crown epidemic has brought shock and uncertainty to the global economy. What path should the global economic recovery choose after the epidemic?
At the 2021 Financial Street Forum annual meeting being held here, the participants offered suggestions and suggestions on multilateral cooperation, green development, and technological empowerment.
Multilateral cooperation is still the main theme
The outbreak of the epidemic is an important challenge to multilateral cooperation.
Participants believed that in this global public health crisis, multilateral cooperation is still the main theme.
Zhang Xiangchen, Deputy Director-General of the World Trade Organization, explained the importance of the multilateral trade cooperation system from the perspective of multilateral and regional relations.
He pointed out that the multilateral trading system is the main channel for the liberalization and facilitation of world trade.
"The WTO believes that multilateral and regional relations can be complementary, but the premise is that the multilateral trading system is the foundation."
He pointed out that the multilateral trading system is currently in trouble, challenged and tested.
Global governance requires a multilateral trading system, and this system also needs reform.
Reform involves ideas, negotiation mechanisms, dispute settlement mechanisms, etc., and requires sincere policy dialogues among all countries.
Robert Koopman, chief economist of the World Trade Organization, pointed out that under the epidemic, the global economic recovery is showing an uneven trend. Strengthening the equitable distribution of global vaccines will help underdeveloped countries that are mired in the epidemic to achieve economic recovery.
"The vaccine market is developing well. At present, vaccine production is basically based on geography. Many countries need to import vaccines produced in other countries, and vaccine exports rely on the cooperation of logistics and transportation. The epidemic is common to all countries. An opportunity to realize the importance of global cooperation." He said.
Green development boosts economic recovery
Under the impact of the epidemic, global sustainable development has been dragged down. The poverty population has grown, the energy crisis has become prominent, and the issue of climate change has become increasingly urgent. Participants believe that the green development of the “Belt and Road” initiative will help the recovery of the global economy.
Liu Jin, vice president of China Development Bank, pointed out that the countries along the “Belt and Road” have obvious advantages in market size and resource endowment, strong complementarity, huge potential and broad prospects.
Under the current economic situation and the normalization of epidemic prevention and control, high-quality joint construction of the "Belt and Road" is of great significance to promote the recovery of the world economy and promote global green development.
Statistics show that in 2020, the trade volume of goods between China and countries along the “Belt and Road” reached US$1.35 trillion, a record high, making positive contributions to countries fighting the epidemic, stabilizing the economy, and safeguarding people's livelihood.
At the same time, the proportion of China's green energy investment in countries along the “Belt and Road” has gradually increased. Last year, the proportion of renewable energy investment in the “Belt and Road” project exceeded that of fossil energy.
Talking about the green development of the “Belt and Road” in the future, Wang Xin, director of the Research Bureau of the People’s Bank of China, believes that at present, many economies along the “Belt and Road” are still in the economic growth mode of high energy consumption and high emissions, which is very important to the environment and climate. The tendency to change is relatively high. Therefore, green development puts forward higher requirements for the cooperation of the “Belt and Road”, but at the same time it also breeds many opportunities.
Wang Xin said that in the future, China can further tap the potential of co-construction of the "Belt and Road" clean energy development, make efforts in green technology cooperation and capacity building, and at the same time make good use of the financial market to promote the development of a green investment and financing system.
Technology prevents cross-border capital risks
With the popularity of the new crown vaccine, capital inflows from emerging markets have rebounded strongly since the second half of 2020.
However, participants reminded that with the gradual improvement of the global supply and demand gap and the normalization of loose monetary policies in the near future, the pattern of cross-border capital flows may change, and the situation of capital inflows in emerging markets is facing uncertainty.
To this end, it is necessary to strengthen policy response and do a good job in risk prevention.
Hu Chunyu, director of the Administration and Inspection Department of the State Administration of Foreign Exchange of China, said that technological empowerment is the development direction of cross-border fund supervision.
The domestic and international market economic environment is undergoing major changes, and high-quality financial supervision is also facing challenges.
In this regard, it is necessary to break the inertial thinking, make full use of digital technology and regulatory scientific and technological achievements, and explore the construction of new regulatory models, regulatory systems, and regulatory methods.
Xuan Changneng, deputy director of the State Administration of Foreign Exchange of China, pointed out that in the context of the close interdependence of global economic development and the in-depth linkage of financial markets, understanding cross-border capital flows must focus on the world.
"The United States is the main driver of global cross-border capital flows. Emerging markets and developing countries are often passive recipients. This determines that U.S. monetary policy and changes in the US dollar have spillovers. Emerging markets and developing countries face large cross-border capital flows. Risk of entry and exit."
In response to measures to effectively prevent cross-border financing risks, Xuan Changneng suggested that we should attach importance to technology-enabled foreign exchange management, promote the application of new technologies such as big data, visualization, and artificial intelligence, and replace the traditional regulatory model with technology-driven supervision; build a multi-level, Multi-dimensional, full-process cross-border capital flow monitoring and evaluation system, coordinated and promoted the dynamic monitoring, identification and evaluation of risks.
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