What is the significance of the G20 Summit?

Although the "Financial Markets and World Economic Summit" of the leaders of the Group of 20 countries, which attracted worldwide attention, did not achieve some "substantial" results as people expected before the meeting. For example, announcing a joint interest rate cut based on a complete understanding of the severity of the crisis, or implementing pragmatic "rules of the game" on the risk management model of the IMF and the World Bank and giving emerging market countries more say. Reforms, or strengthening "hard" constraints on the U.S. dollar monetary system and proposing operable reform content, have not "fulfilled" the market's expectations. However, the significance of this summit is to lay a solid foundation of "trust" for governments of all countries to jointly act to resist the crisis and restore market confidence, which is mainly reflected in the following three points: 1. Begin to establish a strategy for future development and cooperation of the world economy* In the face of a crisis of consciousness, emerging market countries that have always been overly dependent on Europe and the United States and whose economic development is seriously unbalanced, as well as the source and hardest-hit areas of this crisis, will naturally emphasize the interests of their respective countries and emphasize government intervention. However, if these practices are overused, they can easily lead to protectionism in trade and investment, and it is easy for the government to intervene in place of the market. However, the leaders of the G20 participating in the meeting agreed that market principles, coupled with an open trade and investment system and effectively regulated financial markets, can once again generate social progress and economic development that have been suppressed by the current crisis. It is precisely the activation of these elements that requires the vitality, change and entrepreneurial spirit that will ensure a thorough recovery and more sustainable balanced development of the global economy in the future, and will help our society achieve the current urgent goals of employment and poverty reduction. On the other hand, through this summit, guests from the United States have confirmed the alliance foundation of "common cooperation" that is crucial to them. In the statement of this conference, the world can clearly see that governments of all countries agree with the crisis management awareness of the US government and also hope to overcome the current global challenges by establishing sustained partnerships and adhering to cooperation and multilateralism. challenge to restore stability and prosperity to the world economy as soon as possible. 2. The U.S. dollar-dominated international monetary system is being reformed. Although the U.S. government’s market philosophy has not wavered, and it has indeed played an indispensable and positive role in the development and prosperity of the world economy, the U.S. dollar-dominated international monetary system lacks restraint. The monetary system is shaking. Not only did the statement of this meeting fail to emphasize the role of the International Monetary Fund and the World Bank, which it attached great importance to in the past, but instead accepted the crisis management structure of multilateralism from Asia and other regions, China and Japan The finance ministers of South Korea and South Korea met in Washington and agreed to expand the scale of currency swaps and emphasized the importance of regional cooperation. This incident also implies that the United States has to accept the fact that the U.S. dollar system has become very fragile during this crisis, and has to recognize the trend of regional financial cooperation to get rid of the U.S. dollar crisis. Of course, a completely new monetary system that replaces the US dollar does not exist today. Although French President Sarkozy, the current EU executive chairman, emphasized earlier that the euro should play a more important role in the reconstructed monetary system, Europe Neither the economy itself nor the existing international trade and investment settlement system, as well as the maturity of European financial markets, allow countries around the world to spontaneously choose the euro instead of the battered US dollar. In recent days, the dollar has continued to rise and the euro has continued to fall. This is the choice that the market made resolutely at the most serious moment of the crisis, when everyone in the world increased their aversion to risk. Nonetheless, we see that constraints on the U.S. dollar monetary system are tightening in various ways. In addition to new signs of alternatives to the U.S. dollar in crisis management in various countries, the summit statement specifically emphasized the need for stricter transnational supervision of those financial institutions that abuse financial innovation activities supported by the U.S. dollar monetary system. In order to make the world's financial system "transparent" and "credible" in the future, the summit requires international financial regulatory agencies and organizations to continuously improve the level of professional supervision and play the necessary and effective "early warning" function in infrastructure and New loan mechanisms were introduced in the field of trade finance.

3. The “China Card” shows the world’s sincerity and confidence. Faced with the current complicated domestic and international economic situation, the Chinese government has repeatedly emphasized that doing its own thing well is the greatest contribution to the world economy and global financial stability! If this statement represents the far-reaching strategy of the Chinese government's crisis management, then the ten measures recently announced by the State Council to expand domestic demand and the fiscal investment of 4 trillion yuan in the past two years are concrete measures to overcome this global financial crisis. The "China card" - this is China's most profound gift to the G20 summit, and it is also a sincere expression of the Chinese government's desire for the summit to achieve substantive results. These measures to expand domestic demand not only reveal that the impact of this crisis is more dangerous than before, but also show that although China is playing an increasingly important role on the world stage, it is still a developing country and is willing to cooperate with neighboring developed countries. Together with the industrialized countries, we share the strong determination to respond to the crisis, shoulder the responsibility of rescuing the market, and the confidence to win in overcoming the crisis.