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The instruction for drafting China’s 13th Five-year Plan （2016-2020） included the first open declaration that “increasing China’s say in the world economic governance” was now a national strategy.
China will chair the next G20 summit in September 2016, and at this year’s meeting, held in Turkey on November 16, Chinese President Xi Jinping pledged to transform the G20 “from a mechanism of crisis response to one of long-term governance” and shift its agenda from “short-term issues to deep-seated and longer-term ones.”
Two days later, at an APEC summit in the Philippines, he urged an acceleration of the process of building the Free Trade Area of the Asia-Pacific （FTAAP）.
Given the realities underpinning the G20 and the Asia-Pacific economic situation, these two projects seem to address core issues of global economic governance, and thus provide an opportunity for China to realize its ambition of having more say in managing and addressing these issues. The words and actions of China’s leaders in the past year have been regarded as signposts that the country is already well on its way to playing a bigger role in reshaping global economic governance.
It is also important, however, to listen to voices warning of challenges ahead. A small mistake made in this early stage of realizing an ambitious vision could mean major trouble down the road. China has a lot of homework to do.
Refreshing
In 2008, the G20, representing all major developed and emerging economies, was upgraded from a gathering of central bankers and fiscal ministers to a full-blown leaders’summit in response to the global financial crisis. The G20 was initially expected to assume a bigger role in coordinating global economic and trade policies than the G7 club of industrialized nations had been able to. However, the G20 faced criticism that it has become nothing more than a talk show in the past two years； as emerging economies suffered growth slowdowns, a lack of implementation of commitments against protectionism by G20 members has remained, and no progress has been made on enforcing the G20 decision to give emerging economies more power in the IMF. The G20 needs refreshed momentum to become an institutionalized platform for world economic governance.China’s GDP 2010-2014
On October 5, 12 of the 21 APEC members concluded negotiations on the Trans-Pacific Partnership, a US-led regional free trade protocol. “We can’t let countries like China write the rules of the global economy,” said US President Barack Obama in his statement that same day. By pushing through negotiations on the TPP , the US was seemingly trying to block the revival of the FTAAP as discussed at the APEC summit in Beijing in 2014. APEC reached consensus on the FTAAP in 2006, but shelved the scheme after the US lost interest.
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