Xi says world economy at risk from rising protectionism

HANGZHOU: The global economy is being threatened by rising protectionism and risks from highly leveraged financial markets, Chinese President Xi Jinping said at the opening of a two-day summit of leaders from Group of 20 (G20) nations.

His warning yesterday followed bilateral talks with Barack Obama that the US president described as “extremely productive”, but which failed to bring both sides closer on thornier topics such as tensions in the South China Sea.

The global economy has arrived “at a crucial juncture”, Xi said, in the face of sluggish demand, volatile financial markets and feeble trade and investment.

“Growth drivers from the previous round of technological progress are gradually fading, while a new round of technological and industrial revolution has yet to gain momentum,” he said.

Xi also called on the G20 countries to match their words with actions. “We should turn the G20 group into an action team, instead of a talk shop,” he said.

But some of the G20 leaders have begun drawing battle lines in disputes over issues ranging from trade and investment to tax policy and industrial overcapacity.

European Commission president Jean-Claude Juncker told a news conference China must set up a mechanism to address its problem of industrial overcapacity, saying it was “unacceptable” the European steel industry had lost so many jobs in recent years. “Overcapacity is a global problem but there is a particular Chinese element,” he said.– Reuters