Chinese President XI Jinping Calls for a Greater Coordination of Global Policies

On Thursday, Chinese president Xi Jinping organized a meeting of leaders from the 20 nations group to covey the need for larger global coordination with China in respect of macroeconomic policy to re-establish confidence in global stimulus against the effects of the coronavirus.

The 20 Nations included the U.S., Germany, and Japan among other nation’s leaders and they conducted a non-conventional video conferential meeting to take actions against the coronavirus pandemic. The virus originally originated from the Wuhan City of China in December and has since taken the lives of over 3200 people in the country. The data now shows that the confirmed cases of covid-19 in the U.S. has now exceeded the cases in the origin country.

“Countries need to leverage and coordinate their macro policies to counteract the negative impact and prevent the world economy from falling into recession,” Xi Jinping said, as per official English transcript.

Courtesy of the meeting, the G-20 leaders decided to issue a collective statement that they are planning to provide over $5 trillion to the global economy in response to the financial, economic, and social impact of the global pandemic.

Xi Jinping also suggested the nations to enable smooth flow of trade across the nations by cutting tariff and other trade barriers.

“What China will do in this regard is to increase its supply of active pharmaceutical ingredients, daily necessities, and anti-epidemic (goods) and other supplies to the international market,” Xi added. However, it was not completely apparent the substance of the last statement as to whether China is looking to just give-away the said supplies or will sell more.

The situation in China is relatively stable as the virus has now killed over 20,000 people outside the Chinese republic.

Followed by the said statements, International Monetary Fund MD Kristalina Georgieva said, “We project a contraction of global output in 2020, and recovery in 2021,” He added. “How deep the contraction and how fast the recovery depends on the speed of containment of the pandemic and on how strong and coordinated our monetary and fiscal policy actions are.”

In China, the businesses were on a shut-down since January but as a sign of recovery, the city of Wuhan is set to overcome the lockdown on April 8.