The G20 leaders will gather in Brisbane this weekend with the theme of growth and resilience, to take stock of the global economy and make their policy pledges.
As the major platform for international economic co-operation, the G20 needs to live up to world expectations and make proper prescriptions to maintain the wellbeing of the global economy.
For the global economy, an uneven recovery continues but downside risks remain. The pace of recovery is becoming more country-specific. Last month, the International Monetary Fund further lowered its forecasts for global economic growth to 3.3 per cent this year and 3.8 per cent next year , largely because of weaker than expected global economic activity.
According to the IMF, raising actual and potential growth must remain a priority globally, and there is a "general and urgent" need for country-specific structural reforms. This judgment echoes with the G20's priorities this year.
Growth is key. In September last year, G20 leaders in St Petersburg committed to develop by the Brisbane summit comprehensive growth strategies, which contain a mix of macroeconomic and structural policies in the four priority areas of investment, employment, trade and competition, at both domestic and international levels.
This year, the G20 further committed to developing new policy measures with the aim of lifting collective GDP by more than 2 per cent above the current trajectory over the coming five years. This will make a significant difference to the global economy - potentially providing output of more than $2 trillion to global GDP together with millions of additional jobs.
To deliver on this 2 per cent objective, commitment needs to be translated into actions by each country, especially in boosting investment in quality infrastructure, which is crucial to lifting growth and creating jobs. Structural reforms are also essential to fulfil the 2 per cent goal. As there is relatively small room to manoeuvre for fiscal and monetary policies, adopting ambitious and comprehensive structural reform agendas offers governments more chance in seeking new growth impetus.
The IMF and OECD are reported to have looked at more than 1000 policy commitments put forward by G20 countries in the comprehensive growth strategies, and found 80 per cent of these commitments are new measures. This is indeed good news for the global economy.
The onus is on the G20 to strengthen the resilience of the global economy, which needs, among other things, a more stable international financial system and a healthy and well-functioning world market, as well as conducive environments for business with fewer uncertainties.
The G20 is committed to pushing forward financial regulatory reforms, reducing risks and building a more resilient financial system, which will enhance household and market confidence. Actions to tackle and deter cross-border tax evasion and address base erosion and profit-shifting problems are equally important. Furthermore, in order to create a transparent and fair business climate, anti-corruption, including illegal asset recovery and denial of safe haven for corrupted officials, should be put high on the growth and resilience agenda.
Better governance brings bigger accomplishments. At the forefront to address key global economic challenges, the G20 is on the way to improving global economic governance and forging ahead on key areas of reform of the international financial system and the global energy architecture.
Implementation of the IMF quota and governance reform agreed by the G20 leaders in 2010 remains a priority which concerns the G20's credibility. G20 finance ministers and central bank governors have vowed to finish the reform by the end of this year, and finish the 15th General Review of Quotas next year, to strengthen IMF legitimacy by increasing the representation of emerging markets and developing countries.
Maintaining a robust and effective World Trade Organisation as the backbone of the multilateral global trading system serves the interest of every member of the international community. In that sense, the G20 needs to make efforts to ensure that bilateral, regional and multilateral trade negotiations are open, transparent, inclusive and compatible with the multilateral trading system.
The G20 also has the responsibility to strengthen global energy governance by agreeing on principles for G20 energy co-operation, so as to build a resilient energy market for trade and investment.
China has strong confidence in the G20. As the Chinese economy enters the phase of "new normal" underlined by transition to a more sustainable growth path backed by structural reforms, China maintains a fairly rapid growth rate of 7.4 per cent for this year, which will lead to more quality jobs, better living standards for its people, and more contribution to the global economy.
With a bigger footprint in the global economy, China is actively participating in the G20, and has put forward more than 120 policy commitments in comprehensive growth strategies, contributing to more than 30 per cent of the G20's 2 per cent objective, which proves China's unique role and contribution to the G20.
Since assuming the G20 presidency, Australia has organised a professional and efficient G20 team led by its Sherpa Heather Smith, and made great efforts for a successful Brisbane summit, with a detailed outline directing the preparation process. As the APEC host this year, China values its effective co-ordination and collaboration with Australia.
While the world economy is recovering, there are some obvious challenges to deal with. The views of G20 members may vary but the bottom line is clear - G20 can make difference. Although the G20 is not a panacea for all the world's ills, it did succeed in curbing the global financial crisis and bringing the global economy back on track.
With comprehensive growth strategies to stimulate growth, the G20 is trying hard to address global growth challenges in an ambitious and meaningful way.
The next step comes down to delivery. That is where the rubber hits the road for more jobs and faster growth. We are confident that the Brisbane summit will meet the expectations and deliver concrete outcomes, by translating our collective commitments into specific actions by each country.
These actions will speak for themselves and prove the G20 the premier forum for economic co-operation.
Li Baodong is China's G20 Sherpa and Vice Foreign Minister