Approval of key results for the year for financial drainage Consultation on the development of the world economy

G20 Finance Ministers and Central Bank Governors Meet in Chengdu, Sichuan Province

[ Pictures from Sichuan News ]

By Tan Guoqi Hu Fashou, Journalist

[Bottom line.] G20 (group of 20)(G20)The Conference of Finance Ministers and Central Bank Governors.as the main platform for global economic governance.1999surname Nian9moon25Founded on March 28, 2010, the organization is comprised of the United States, Japan, Germany, France, the United Kingdom, Italy, Canada, Russia, Australia, China, South Africa, Argentina, Brazil, India, Indonesia, Mexico, Saudi Arabia, Turkey, South Korea and the United States of America.19countries as well as the European Union.2008Following the onset of the international financial crisis inG20The operational mechanism was upgraded from the mechanism of meetings of finance ministers and central bank governors to the mechanism of the Leaders' Summit.G20The mechanism of rotating presidency is in place. This year, for the first time, China becameG20summitsThe presidency, the host city of the summit is Hangzhou, while Shanghai and Chengdu are the host cities for the meetings of finance ministers and central bank governors.

July 23-24, with discussions on the current global economic situation, the Framework for Strong, Sustainable and Balanced Growth, the international financial architecture, investment and infrastructure, financial sector reform, international tax cooperation, green finance, climate finance, counter-terrorism financing as the main topics and
The 2016 Group of Twenty (G20) Finance Ministers and Central Bank Governors' Meeting, themed "Promoting Growth, Sharing Responsibility, Building Governance and Sharing Development", was held in Chengdu, Sichuan Province. Mr. Lou Jiwei, Minister of Finance of China, and Mr. Zhou Xiaochuan, Governor of the People's Bank of China, co-chaired the meeting.

The meeting approved the main results under each topic and issued a communiqué of the meeting, which prepared the financial and monetary results for the Hangzhou Summit. More than 900 finance ministers and central bank governors from G20 member countries, guest countries and representatives of the International Monetary Fund, the World Bank, the United Nations Development Programme, the Asian Infrastructure Investment Bank and other international economic organizations gathered in the national central city of Chengdu to discuss the development of the world economy. This is the highest-specification and most influential international conference held in Chengdu following the success of the Fortune Global Forum, the 12th World Chinese Entrepreneurs Convention and the globally-anticipated 2016 China-Chengdu Global Innovation and Entrepreneurship Fair three years ago.

It is reported that the G20 member countries, known as the wind vane of the world's economic development, GDP accounted for the world's 90%, trade accounted for more than 80%, and the population accounted for nearly 2/3 of the world's total population.2016 Chengdu Group of Twenty (G20) Finance Ministers and Central Bank Governors' Meeting is the third meeting of finance ministers and central bank governors to be held since China assumed the presidency of the G20 and the first time the meeting has moved to western China since its It is also the first time since its birth that the meeting has moved to western China. During the meeting, the G20 High-Level Seminar on Taxation, the High-Level Seminar on New Approaches to Economic Challenges and other related meetings were held.

July22On Sunday, Chinese Premier Li Keqiang held a meeting in Beijing with World Bank President Jim Yong Kim, International Monetary Fund Managing Director Christine Lagarde, World Trade Organization Director General Azevedo, International Labor Organization Director General Reid, Organization for Economic Cooperation and Development Secretary General Gurría, and Financial Stability Board Chairman Carney."1+6"Round-table dialogues on economic growth, structural reforms and other topics.

According to the reporter's understanding, China since last year12moon1succeed to the post ofG20Presidency, which will take place this year9Hosted the 11thG20Leaders' Summit. The Hangzhou Summit will focus on the theme of "Building an Innovative, Dynamic, Connected and Inclusive World Economy", promote all-round connectivity and positive interaction among countries, improve global economic governance, reduce inequalities and imbalances in global development, and enable people of all countries to equitably enjoy the benefits of world economic growth.

In accordance with established practice.G20The Summit was prepared on two tracks: the finance channel and the facilitator channel. Among them, the finance channel is centered on the theme of the Summit, mainly discussing the global economic situation, the "Framework for Strong, Sustainable and Balanced Growth", investment and infrastructure. So far, the finance channel has held two meetings of finance ministers and central bank governors and two meetings of the coordinators.3At the second meeting of the Finance and Central Bank Deputies, positive progress was made on all financial issues, and the main expected results for the year were basically locked in.

last year2capital master planG20The Shanghai Conference of Finance Ministers and Central Bank Governors issued a communiqué from the meeting, agreeing to take additional actions to achieve the common goal of boosting global economic growth. The meeting reaffirmed the avoidance of competitive devaluations and the rejection of all forms of protectionism, and agreed to engage in close discussions and communication on the foreign exchange market. The meeting emphasized that the full range of policy tools, including fiscal and monetary policies and structural reforms, would be used individually and collectively to address risks, enhance market confidence and promote economic growth.

last year 4capital master planG20The Washington Conference of Finance Ministers and Central Bank Governors concluded that the global economy continued to recover and that financial markets had largely returned to levels prior to the beginning of the year, but that growth remained moderate and uneven. The meeting committed monetary policy to continue to support economic activity and maintain price stability. At the same time, it strengthened economic resilience through the flexible implementation of fiscal policy to promote growth, create jobs and boost market confidence, and ensured that debt as a percentage of theGDPThe share of the population is maintained at a sustainable level.

The Chengdu G20(G20)The main tasks of the Conference of Finance Ministers and Central Bank Governors are to: Approve the key results of the finance channel for the year and submit themG20Hangzhou Summit, mainly including: formulating priority areas and guiding principles for structural reforms as well as a system of indicators to measure the progress of reforms, promoting the issuance of a joint vision statement by the multilateral development banks on actions to support infrastructure investment, launching the initiative of the Global Alliance for Infrastructure Connectivity, formulating a policy guideline on the diversification of financing instruments for infrastructure and small and medium-sized enterprises (SMEs), as well as further advancing international cooperation on taxation, improving the international financial architecture and international financial regulatory reform.

At present, the uncertainty and complexity of world economic growth have increased, and the United Kingdom's exit from the European Union, in particular, has become a prominent risk factor for the global economy.G20How it will play a role in addressing international economic challenges and what impact China's economic development will have on the world economy are of great interest to the international community.

According to the recently released economic data for the first half of this year, China's GDP growth rate reached 6.7%, continuing to maintain the overall stable and steady development trend, the main indicators in line with expectations. Industrial production factory prices PPI decline for six consecutive months narrowed, both conducive to the improvement of the market environment, but also conducive to the improvement of corporate profits. 1 to May industrial enterprises above designated size profit growth of 6.4%, compared with the same period last year has improved. This shows that China's economy is resilient, full of potential, large room for maneuver, despite the downward pressure, but the long-term positive fundamentals have not changed, China's economy is still an important source of power for the world economy.

While stabilizing growth, supply-side structural reform and transformation and upgrading are also being steadily promoted, the quality of economic operation has improved, and the development of new industries and the new economy has shown a good trend. In the first half of this year, China's unitGDPEnergy consumption has decreased year-on-year5.2%The strategic emerging industries grew in the second quarter11.8%accelerated from the first quarter1.8Percentage points.

The meeting recognized that the global economy had continued to recover, but remained weaker than expected, and downside risks persisted. The outcome of the Brexit referendum had increased uncertainty in the global economy, and G20 members were ready to respond positively to the potential economic and financial impact of the Brexit referendum, and hoped to see the United Kingdom as a close partner of the European Union in the future. The meeting noted the actions being taken by the G20 to boost confidence and growth, and reaffirmed the use of all policy tools, individually and collectively, including monetary, fiscal and structural reform policies, to achieve the goal of strong, sustainable, balanced and inclusive growth. The meeting pledged that monetary policy would continue to support economic activity and maintain price stability. While emphasizing the key role of structural reforms, the Conference stressed the equally important role of fiscal strategies in contributing to the achievement of shared growth objectives. The Conference undertook to continue to examine policy measures that might be taken, where necessary, to suit national circumstances. The Conference reaffirmed its commitment to close discussion and communication on foreign exchange markets, to avoid competitive devaluations and to refrain from fixing exchange rates for competitive purposes, and to oppose all forms of protectionism.

The meeting endorsed the G20 agenda for deepening structural reforms, developed guiding principles for structural reforms based on the nine priority areas for structural reforms identified at the Washington meeting in April, and adopted a set of indicators for monitoring and assessing progress on structural reforms. The meeting noted that the G20 had made new progress in implementing the growth strategy and would finalize the growth strategy update and accountability report before the Hangzhou summit. The meeting committed to taking further action to revitalize global trade and boost investment, working to reduce excessive imbalances and promoting greater inclusiveness in the pursuit of economic growth.

The meeting welcomed the commitments made by the 11 multilateral development banks in the Joint Vision Statement on Supporting Action on Infrastructure Investment, including the quantitative targets, announced the establishment of the Global Alliance for Infrastructure Connectivity, and endorsed the G20/OECD Policy Guidance Document on Diversification of Financing Instruments for Infrastructure and Small and Medium-sized Enterprises (SMEs). The meeting supported the effective implementation of the G20/OECD Principles of Corporate Governance and the G20/OECD High-Level Principles for SME Financing.

The Conference endorsed the recommendations of the International Financial Architecture (IFA) Working Group on further improving the international financial architecture, committed to further strengthening the global financial safety net with the International Monetary Fund (IMF) at its core, and welcomed the upcoming Chiang Mai Initiative Multilateralization (CMIM) joint exercise with the IMF. The meeting looked forward to the IMF's completion of the 15th General Review of Quotas by the 2017 Annual Meetings, including the formation of a new quota formula, and supported the World Bank Group's implementation of the share review in accordance with the agreed roadmap and timetable. The meeting supported the ongoing efforts to incorporate enhanced contractual terms into sovereign bonds. The meeting supported the Paris Club as the main international official bilateral debt restructuring platform for discussing a range of sovereign debt issues, as well as the Paris Club's continued inclusion of more emerging creditors, and welcomed China's regular participation in Paris Club meetings and its willingness to play a more constructive role, including through further discussions on potential membership. The meeting supported continued improvement in the analysis, monitoring and management of risks associated with excessive volatility of capital flows, as well as a study on expanding the use of special drawing rights (SDRs).

Noting that the recent market turmoil and uncertainty had re-emphasized the importance of an open and risk-resilient financial system, the Conference remained committed to completing the remaining core work in the regulatory framework and to implementing agreed financial reforms in a timely, comprehensive and consistent manner. The meeting welcomed the ongoing work of international organizations to take stock of international experience with macroprudential frameworks and tools. The Conference endorsed the G20 High-Level Principles for Digital Financial Inclusion, the G20 Upgraded System of Financial Inclusion Indicators, and the Framework for the Implementation of the G20 Action Plan on Small and Medium-Sized Enterprise Finance. Calling on all relevant countries and jurisdictions to commit to base erosion and profit shifting (BEPS) and to participate equally in inclusive frameworks, the meeting endorsed the objective criteria submitted by the OECD for identifying non-cooperative jurisdictions on tax transparency. The meeting recognized the importance of pro-growth tax policies and tax certainty and requested OECD and IMF to follow up on related work. The Conference expressed its strongest condemnation of the recent terrorist attacks and reaffirmed its unity and determination to combat terrorism in all its forms and to address all sources, techniques and channels of terrorist financing. The meeting recognized the need to scale up green investment financing to support sustainable global growth. The Conference welcomed the G20 Green Finance Synthesis Report presented by the Green Finance Study Group and the options it proposed for the development of green finance. While welcoming the studies presented by the Study Group on Climate Finance, including "Effective and transparent delivery and mobilization of climate finance for enhanced action on mitigation and adaptation", the Conference expressed its intention to continue its work on climate finance next year, guided by the principles, provisions and objectives of the United Nations Framework Convention on Climate Change.

Mr. Lou Jiwei, Minister of Finance of China, pointed out that although the recent series of international events had not caused a major impact on the international financial market, the situation was still not optimistic. Low global growth has become the new normal and the root cause of many problems, which will exacerbate economic and social contradictions. In this situation, it is necessary for the G20 countries to strengthen cooperation, reaffirm the consensus of the G20 Shanghai Conference, and continue to adopt all policy tools, including fiscal and monetary policies and structural reforms, to enhance confidence and promote growth. First, demand management policies remain important. The marginal benefits of monetary policy are declining, more growth-friendly fiscal policies should be implemented, and countries with fiscal space should increase fiscal spending. Second, low-growth dynamics should be addressed through structural reforms. Developed economies should continue to improve labor market flexibility and promote investment and productivity growth; emerging economies should enhance economic resilience, deregulate, promote competition, and advance financial sector reform. Thirdly, they should continue to support the process of economic globalization, oppose all forms of protectionism and refrain from using restrictive trade measures. Fourth, the countries concerned should actively respond to the challenges of reality, and it is hoped that the UK and the EU will actively build a close partnership, send positive signals to the outside world, and stabilize the market's expectations of their economic prospects. This year, the G20 has taken a new and important step on the road to structural reform, and initially established a framework that provides policy reference as well as a means of measurement for the G20 to deepen structural reform and improve the coordination and effectiveness of reform actions by all parties. In the future, the G20 will continue to adjust and improve the structural reform framework in the light of changes in the situation, so as to promote strong, sustainable and balanced growth of the global economy.

Zhou Xiaochuan, governor of the People's Bank of China, said that China's economic operation in the first half of the year was generally stable and progressing steadily, with the economic growth rate in a reasonable range and the price and employment situation remaining stable. After the British "Brexit" referendum, the external environment facing China's economic operation has become more complicated. The Chinese government has maintained the stability and continuity of its macroeconomic policies, and at the same time, it has made great efforts to promote the supply-side structural reform, which is also a necessary way to solve the structural problems such as overcapacity. After a period of adaptation, market participants have gained a deeper understanding of the RMB exchange rate formation mechanism. At present, the RMB exchange rate has remained basically stable against a basket of currencies, and market confidence has been further solidified. In the future, China will continue to improve the RMB exchange rate formation mechanism, which is based on market supply and demand and adjusted with reference to a basket of currencies, and will continue to improve the regularity and transparency of its policies and strengthen its communication with the market.

Zhou Xiaochuan said that since the relaunch of the International Financial Architecture Working Group (IFAWG), significant progress has been made in its work.The G20 should continue to push forward the 15th General Quota Inspection of the IMF, and further increase the quota share of emerging markets and developing countries. It should continue to push for the inclusion of enhanced contractual terms for sovereign bonds, and welcome the Paris Club's expansion of membership to more emerging creditor countries. Regional financial arrangements are called upon to cooperate more with the IMF and to continuously improve IMF lending instruments. Meanwhile, the use of SDRs should be expanded; the People's Bank has released data on foreign exchange reserves, balance of payments and international investment positions with SDRs as the reporting currency and is studying the possibility of issuing SDR bonds.

Zhou Xiaochuan emphasized that significant progress has been made in the reform of the financial sector in recent years, and the robustness of the global financial system has been effectively enhanced.G20Efforts to build a more open, robust and resilient financial system should continue, including by continuing the process of global financial sector reform, promoting the consolidation and distillation of experience with macroprudential frameworks and tools, and promoting the strengthening of the regulation of financial market infrastructures. He noted that this yearG20Positive progress has been made in the development of digital financial inclusion as well as indicators and data on financial inclusion, and the next step should be to continue to promote the development of financial inclusion so that the fruits of economic growth can reach all people.

Zhou Xiaochuan said that this year, the work of the G20 Green Finance Study Group has achieved preliminary results and formed a report, and all parties have studied in depth how to mobilize more resources through financial innovation, knowledge sharing and capacity building, risk analysis and international cooperation according to the characteristics of each country's national situation, which provides a useful reference for the promotion of the development of global green finance.

G20High-level seminar on taxation

"Accelerating structural reforms will enhance medium-term growth potential and will make the economy more innovative, flexible and resilient, and China's approach and experience are of great relevance." At the G20 High-Level Seminar on Taxation held on the morning of July 23, China's Finance Minister Lou Jiwei said that the effectiveness of fiscal and monetary policies on the global economy is weakening, and that the G20 should build consensus to support structural reforms in key areas, improve tax policies, and crack down on tax avoidance to promote global economic recovery.

Lou Jiwei pointed out that at the current critical moment when the global economy is in transition from crisis response to long-term governance mechanism and from cyclical policies to structural policies, the deep-rooted impacts of the international financial crisis are still persisting, and issues such as stagnant growth in global trade, increased volatility in the financial market and low commodity prices are still plaguing the world. "Against this backdrop, economies and international organizations have made unremitting efforts in applying macroeconomic policies to cope with the crisis, but the policy effects of fiscal and monetary policies are diminishing and the negative impacts are showing up, with the deep-seated causes being the medium- to long-term structural imbalances, the slowdown of total factor productivity, the unequal distribution of incomes, and the insufficient drive for innovation." Promoting "strong, sustainable and balanced growth" of the economy remains a key challenge.G20The central theme of the

Lou Jiwei suggested that with the development of economic globalization, the differences in the tax systems of different countries have led to opportunities for multinational enterprises to take advantage of the loopholes in the international tax rules that differ from place to place and artificially shift profits to countries and regions with low tax burdens, in order to achieve the purpose of reducing the global tax burden.G20Countries should think about international tax cooperation on a wider scale, at a higher level and at a deeper level, and expand global, regional, multilateral and bilateral tax cooperation. The first is to eliminate tax discrimination in the formulation and implementation of tax policies and reduce tax uncertainty. The second is to reduce international double taxation, prevent mutual non-taxation, effectively curb tax evasion, remove obstacles to the growth of international trade and investment, and jointly build an open, inclusive, balanced and inclusive tax cooperation architecture.

Lou Jiwei emphasized that the fundamental way to achieve strong, sustainable and balanced economic growth is to promote structural reform, strengthen innovation capacity and promote social equity. And taxation is an indispensable and important part of the global governance system, an important element in the harmonization of global economic rules and an important means of promoting global economic recovery.2013St. Petersburg Summit on Base Erosion and Profit Shifting.(BEPS)Consensus was reached on the plan of action. AfterOECDand the efforts of States over the past two years.BEPSThe action plan publishes the final results and establishes the implementationBEPSThe inclusive framework for results is an important step forward in international tax reform.BEPSThe action plan is also the first time that developed and developing countries have come together on an equal platform to discuss and formulate new rules for international taxation. To continue to promoteBEPSThe implementation of the plan and exchange of tax information will attract more countries and regions to join the inclusive framework, comply with the standards for exchange of tax information, promote domestic tax reform and effectively combat international tax evasion. Taking the issue of base erosion and profit shifting as a starting point, and taking into full consideration the differences in countries' national conditions and stages of development, we will seek the "greatest common denominator" and promote the further improvement of the international tax system.

Lou Jiwei said China will now and in the next few years, while moderately expanding aggregate demand, focus on strengthening supply-side structural reforms, supported by active fiscal policies. AsG20As President, China will vigorously promote the strengthening of macroeconomic policy coordination and communication among countries to facilitate the realization of the goal of strong, sustainable and balanced growth of the world economy. Lou Jiwei believes thatG20There is still much room for national international coordination and cooperation in the area of taxation.G20As a globally recognized governance platform, it should play a leading role in improving global tax governance, continuously expanding and deepening international tax coordination and cooperation, and promoting the establishment of a new international tax order that is fair, just, inclusive and orderly.

The reporter learned that up to now, there have been96countries(as suffix city name, means prefecture or county (area administered by a prefecture level city or county level city))commit to2017Year or2018The automatic exchange of information will be implemented by the end of the year, the scope of countries that have signed the multilateral convention on mutual administrative assistance in tax matters will be further expanded, and the review and supervision of tax transparency will be actively promoted.

Colleges and universities from across the Kawarthas received pre-conference lectures from a variety of organizations includingG20background knowledge, basics of volunteering, communication skills and etiquette training of the308A number of university student volunteers provided high quality security services for the successful organization of the conference. Global300A number of media journalists visited the conference to cover the event.

[Reporters' testimonials] G20Why did the meeting of finance ministers and central bank governors choose to be held in Chengdu? People's Daily, Xinhua and other national news media released news that: Warm and inclusive city posture, huge economic growth potential and development space, strong entrepreneurial and innovative atmosphere, charming and unique city temperament, rich experience in hosting international conferences and execution capacity, and excellent governmental service environment ...... all these have become the2016ThirdG20The reason why Chengdu was chosen for international events such as meetings of finance ministers and central bank governors.G20As the wind vane of world economic development, the meeting of finance ministers and central bank governors visited Chengdu, a mega-center city in western China, for the first time. The global dignitaries, financial experts, and high-level businesspeople gathered their eyes on Hibiscus, which further promoted the accelerated construction of Chengdu as a core city of the financial industry, provided new kinetic energy for the development of Chengdu, and comprehensively pushed forward the construction of Chengdu as an international metropolis.