The Hangzhou Summit discussed issues like the major economic problems faced by the world today and global governance to ensure to forge ahead with the goal of “Building an Innovative, invigorated, Interconnected and Inclusive World Economy”
Shortly after the 11th G20 summit in Hangzhou, India will also host the BRICS leaders’ meeting. As the world’s two largest developing countries and emerging market economies, mutual support for hosting these meetings has become the new highlight of cooperation between India and China. The convening of these two grand meetings is beneficial to the India-China cooperation.
“Up in heaven, there is paradise; down on earth, there are Suzhou and Hangzhou.” Hangzhou and India also have profound historical origins. There are written records of the Indian monk Hui Li reaching in Hangzhou 1600 years ago. “Fei Lai Peak” (Peak Flown From Afar) at this place got its name from Hui Li’s words: “This is the small peak of Indian Vulture Mountain and I do not know how it has come flying afar”. India’s great poet Tagore also had written a poem on the West Lake, and also wanted to stay by the lake for a few days; and his impromptu speech in Hangzhou had attracted thousands of people.
The Hangzhou Summit discussed issues like the major economic problems faced by the world today and global governance to ensure to forge ahead with the goal of “Building an Innovative, invigorated, Interconnected and Inclusive World Economy”. The outcome of the consultations at the meet is helpful in promoting the growth of the slowly recovering global economy, will accelerate the global trade and investment, and improve global economic and financial governance.
G20 is the product of the international financial crisis, and represents the voice of emerging market economies yearning for the democratization of the global governance system, which to a certain extent has balanced the power ratio between the developed and developing countries. As former US Secretary of State Henry Kissinger put it, the world order is standing at a turning point. This transition is seen as an increase in the economic output proportion of the emerging economies in the global economy, while the ratio of developed economies has declined. The shift and diffusion of global power has led to a crisis of the legitimacy and effectiveness of the current global governance institutions with emerging market economies asking for more representation and voice.
G20 demonstrated to the world that developing and developed countries could sit together and make up for the shortcomings of the existing governance system. As founding members of the emerging global governance mechanisms such as the G-20, China and India are playing a leading role and building bridges between the developed and developing countries, and China’s role in particular is extremely important. India and China can deepen and broaden the scope of cooperation in global governance mechanisms.
India and China can achieve complementary growth through all-round cooperation in the economic field. India’s current infrastructure modernization— Smart Cities, Industrial Parks and Logistics Parks as well as transport corridors are all in line with China’s “Belt and Road” initiative. Both India and China are big developing countries with large population bases and strong economic development potential. There is still much room for development in economic and trade cooperation between the two countries.
At present, leaders of India and China both attach great importance to, and forge ahead with the domestic reforms, winning broad support of the people. This will be a major contribution to the G20 reform agenda. China’s supply-side structural reforms and the “Belt and Road” initiative both have distinct Chinese characteristics, and will also be one of the main driving forces of global economic growth. The Indian government is also pursuing reform measures such as “Make in India” and “Digital India”. If the series of development plans pursued by India can be docked with China’s initiatives like the “Belt and Road”, it will play a huge role in accelerating the economic development of the two countries, and will also play a decisive role in the development of world economy.
(The author is a Professor at the Center of Chinese and Southeast Asian Studies, Jawaharlal Nehru University, India.)