China`s WEF (World Economic Forum) started on March 25, and the forum`s last day is today. China`s WEF is called CDF (China Development Forum). CDF is committed to «Engaging with the World for Common Prosperity», the CDF is renowned as a high-level forum serving as an important platform for the Chinese government, global businesses, academia, and international organizations.
CDF 2023 is held in Beijing from 25th to 27th March, and the theme of this year`s forum is «Economic Recovery Opportunities and Cooperation». CDF`s slogan is «Engaging with the world for common prosperity».
IMF`s Managing Director Kristalina Georgieva had a speech at the CDF forum, and she said; «China`s economy is seeing a strong rebound, and the IMF`s January forecast puts GDP growth at 5,2% this year. A sizeable increase of more than 2% points from the 2022 rate.
This matters for China, and it matters for the world. The robust rebound means China is set to account for around one-third of global growth in 2023, giving a welcome lift to the world economy. And beyond the direct contribution to global growth, our analysis shows that a 1% point increase in GDP growth in China leads to a 0,3% point increase in development in other Asian economies, on average, a welcome boost.»
«So, what can policymakers do? Let me highlight two opportunities:
The first opportunity is to raise productivity and rebalance the economy away from investment, and towards more consumption-driven growth that is more durable, less reliant on debt, and will also help address climate challenges.
To get there, the social protection system must play a central role through higher health, and unemployment insurance benefits to cushion households against shocks.
At the same time, market-oriented reforms to level the playing field between the private sector, and state-owned enterprises, together with investments in education, would significantly lift the economy`s productive capacity.
The combined impact of these policies could be significant.
IMF research shows that productivity-enhancing reforms in China could lift real GDP by as much as 2,5% by 2027, and by around 18% by 2037. the growth that would be both higher quality and more inclusive.
What`s more, it would also help offset demographic pressures and narrow the gap to advanced economy income levels even faster. But the benefits of rebalancing don`t stop here, and this brings me to the second opportunity;
We welcome China`s goal of net-zero emissions by 2060. A commitment that underlines the importance of tackling climate change for long-term development. Unmitigated warming could lead to estimated GDP losses in China of between 0,5 and 2,3% as early as 2030.
China`s goal could lead to a reduction in carbon dioxide emissions of 15% over the next three decades. This translates into benefits for the whole world: a fall in global emissions of 4,5% over the same period.
Importantly, lower emissions mean a cleaner environment. This is good for people, as it helps to reduce pollution and improve air quality, and public health. And it`s also good for biodiversity.
The spirit of solidarity is very much needed in these difficult economic times. IMF`s role is to bring the members together to address global challenges.
China has played a constructive role in this regard, including through its contributions to our Poverty Reduction, and Growth Trust, its vital financing for our new Resilience, and Sustainability Trust, and helping highly-indebted countries.
In the months, and years ahead, continuing to support the world`s most vulnerable countries will be vital. We can only solve the world`s biggest challenges, and avoid the pitfalls of fragmentation, through cooperation.
Let us work together to foster more peace and prosperity. A global economy in full bloom», Kristalina Georgieva said in her speech at CDF 2023.
Apple`s CEO Tim Cook is one of the few US CEOs to attend CDF 2023. Some U.S. companies are sending only a few executives, but many others are boycotting the event. But Apple is one of the few U.S. companies that is doing great business in China, and Tim Cook is a regular attendee of the Forum.
Tim Cook has also co-chaired the event. CDF is an annual conference sponsored by the Chinese government. The event is an opportunity for Western corporations to speak with officials, and generally help the relationship between China and the West.
In addition to Apple, Pfizer, the founder of the world’s largest hedge fund, Ray Dalio`s, and his Bridgewater Associates, and Invesco`s president, Martin Flanagan, Procter & Gamble, and Blackstone attend the forum this year.
Despite the trade tension between China and the U.S., Apple is attending because China, South Korea, and Japan are the second largest area in the world for buying Apple hardware after the U.S. Money talks.
Picture; World Bank – The Belt and Road Initiative include 1/3 of world trade and GDP and over 60% of the world’s population.
China has always been ahead of the West. The silk road can be as much as 10,000 years old, and the name comes from the silk they sold in Europe. People in Europe didn`t know what silk was, so they believed that silk was growing on trees in China. But, how is it today?
We still have a similar situation. China is way ahead of the West. They are the factory of the world. And most of all; they are very innovative. And innovation is solving problems. Innovation growth and prosperity.
Why not build similar factories in the West? In Europe? Unfortunately, Europe and the West don`t have the same skills. Sorry, but it’s a fact.
China`s silk road is replaced by the Belt and Road initiative, Xi Jinping’s most ambitious foreign policy. It was launched in 2013, and it involves China underwriting billions of dollars of infrastructure investment in countries along the old Silk Road linking it with Europe. And their neighbor, Russia of course.
China is spending around $150 billion a year in the 68 countries that have signed up for the scheme they have. Xi Jinping`s ultimate aim is to make Eurasia (dominated by China) an economic, and trading area to rival the transatlantic one (dominated by America).
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