Abstract On September 3, 2016, President Xi Jinping met with US President Barack Obama, who is here to attend the G20 summit in Hangzhou. The two sides revolve around Sino-US relations and major international regions and global interests that are of common concern...
On September 3, 2016, President Xi Jinping met with US President Barack Obama, who is here to attend the G20 summit in Hangzhou. The two sides have conducted in-depth, frank and constructive exchanges on China-US relations and major international and global issues of common concern, and reached a series of important consensuses. According to officials of the Ministry of Foreign Affairs, the main consensus and achievements reached by the two sides during the meeting include: Macroeconomics: China and the United States recognize that the economies of China and the United States are closely intertwined and that their economic development is highly correlated with the prosperity of the other country. Policies that lay the foundation for strong and sustainable growth for the two economies are critical to improving the living standards of the Chinese and American peoples and have a positive impact on the world. to this end:
Both China and the United States are committed to adopting all policy instruments, including monetary, fiscal and structural policies, to boost confidence and promote growth. Monetary policy will continue to support economic activity and ensure price stability, and is consistent with the central bank's mandate, but monetary policy alone cannot achieve balanced growth. Fiscal policies should be used flexibly to promote growth, create jobs and increase household demand, and support the implementation of structural reforms.
China and the United States jointly reaffirmed the commitments on the exchange rate reached at the G20, including avoiding competitive devaluation and not pegged the exchange rate for competitive purposes. China will continue to transform its market-oriented exchange rate in an orderly manner and strengthen the two-way floating elasticity of exchange rates. The Chinese side emphasized that there is no basis for the continued depreciation of the renminbi. Both parties recognize the importance of clear policy communication.
The United States welcomes China's commitments and progress in economic reforms, especially supply-side structural reforms, including the fundamental role of enhancing consumption to drive economic growth. China is committed to unswervingly promoting supply-side structural reforms, focusing on de-capacity, de-stocking, deleveraging, cost reduction and short-boarding to make China's economic development more sustainable. China will take into account economic stability and structural adjustment, and expand domestic demand by increasing household consumption, increasing the proportion of services in GDP, and ensuring high-quality, private-sector-driven investment. The Chinese side will continue to decentralize power and transform government functions, continue to promote reforms in the financial sector, and further play a decisive role in the credit allocation process, further liberalize service industry competition, and strengthen social security nets.
China's fiscal policy has played a role in expanding domestic demand and supporting structural reforms. Relevant measures include reducing taxes and fees, setting up special funds to provide support for laid-off workers, reducing social insurance contribution rates in stages, and strengthening local government debt management to prevent risks. Support the development of weak links in the economic and social fields such as poverty alleviation and ecological protection. On the basis of the above measures, China will continue to implement a proactive fiscal policy, support structural reforms and appropriately expand aggregate demand.
Structural reforms in the industrial sector: Both China and the United States recognize that the slow global economic recovery and sluggish market demand have made structural problems, including overcapacity in some industries, even more serious. These problems have had a negative impact on trade and workers. Both China and the United States recognize that overcapacity in steel and other industries is a global issue that requires collective response. Both parties also recognize that subsidies and other types of support provided by government or government-backed institutions may lead to market distortions and global overcapacity issues, and therefore need attention. China and the United States are committed to strengthening communication and cooperation, and are committed to taking effective measures to address the challenges to strengthen market functions and encourage adjustment. To this end, China and the United States welcome a global forum that may be established. The forum was actively participated by G20 members and interested OECD members as a platform for sharing and sharing information on global capacity dynamics, government policies and support measures, assisted by the OECD Secretariat.
Global Economic Governance: China and the United States continue to work to support an inclusive and resilient international economic system that can evolve with global realities, challenges and opportunities, including the promotion of all-round cooperation between existing and new international financial institutions. Consistent with the commitments reached in September 2015, China and the United States have jointly pledged to support and further improve the high standards of governance, environmental protection and society in existing, new and future international financial institutions. to this end:
The two sides support a global financial safety net centered on a strong, share-based, well-resourced International Monetary Fund (IMF). Both parties support the maintenance of the IMF's existing loan capabilities. The two sides welcomed the implementation of the 2010 IMF share and governance reform and committed to completing the 15th total share inspection before the 2017 annual meeting. The two sides reiterated that the share adjustment should increase the share of the dynamic economy to reflect its relative position in the world economy, so the possible outcome is an overall increase in the share of emerging markets and developing countries.
The US supports the IMF's decision to include the RMB in the SDR currency basket on October 1. The two sides support research and explore related initiatives to expand the use of SDR, including the wider publication of financial and statistical data using SDR as the reporting currency, and the issuance of SDR-denominated bonds.
China and the United States reaffirm the importance of cooperation on the World Bank's equity review in accordance with the roadmap and timetable agreed by the World Bank Council. The U.S. side appreciates China’s increase in donations in the 12th round of the Asian Development Fund’s capital increase. The US welcomes China's meaningful willingness to increase its donations to the International Development Association and the African Development Fund in 2016.
Bilateral investment agreements: China and the United States have confirmed that bilateral investment agreement negotiations have achieved significant results. The negotiations aim to achieve a high-level agreement that will achieve the common goal of creating a non-discriminatory, transparent and open investment system. The third negative list improvement bid exchanged by the two parties in the near future reflects significant progress and has achieved new results in all aspects of the negotiations. China and the United States have pledged to further advance negotiations to reach a mutually beneficial, high-level agreement.
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