G20 secretariat and 5+1 system are essential to improve global governance and address systemic risks

The G20, as an important platform for world economic cooperation, played a significant role in tackling the 2008 financial crisis. Yet it is facing a series of problems, such as its lack of authority and executive power. With changes ongoing in the world economy, the mission and strategic position of the G20 are in transformation, from the short term of dealing with financial crises to promoting long-term sustainable development of the global economy.

The 11th summit of the G20 will be held in Hangzhou, Zhejiang province, in September. During its presidency of the G20 this year, China should seize the opportunity to make proposals to lead the transformation of its mechanisms and play a proactive role in global governance. One of the most urgent issues is to establish a permanent secretariat and to improve the macroeconomic policy coordination mechanism of systematically important economies.

How the G20 can play a proactive role

President Xi Jinping has called on the international community to strengthen macroeconomic policy coordination at many important international occasions. He advocates improving global economic governance through the G20 and other mechanisms to avoid negative spillover effects from the macroeconomic policies in major economies, so as to promote strong, sustainable and balanced growth in the world economy. Yet this initiative has not been well implemented.