Osaka summit, a platform for problem solving and confidence building

By Xu Qinduo

The Group of 20 summit meeting in Osaka was convened at a critical time, when unilateralism and protectionism are severely damaging existing international rules and threaten to slow global economic growth. It served as a problem-solving platform where multilateralism was galvanized and international confidence was boosted.

Chinese President Xi Jinping(4th R, front) poses for a group photo with the other leaders attending the 14th G20 summit held in Osaka, Japan, June 28, 2019. Xi called on G20 to join hands in forging high-quality global economy while addressing the 14th G20 summit held in the Japanese city of Osaka. [Photo: Xinhua/Huang Jingwen]

In the final communique, the G20 countries agreed to provide a "free, fair, non-discriminatory, transparent, predictable and stable trade environment." Such a provision is of great significance as the tariff war launched by the United States against the world's major economies, including the European Union, Japan, China, India, and Russia, has created a great deal of uncertainty in the business community, damping investor confidence. In its trade dispute with Beijing, Washington went as far as trying to cut global supply chains, disrupting business plans and diminishing the revenue prospects of the companies affected.

Climate change, according to one Chinese official, was the last issue on which the leaders of the world’s 20 largest economies reached a consensus. In the end, the joint statement says, "signatories to the Paris Agreement who confirmed at Buenos Aires its irreversibility and are determined to implement it, reaffirm their commitment to its full implementation, reflecting common but differentiated responsibilities and respective capabilities, in the light of different national circumstances." This was followed by a separate statement, saying that the United States "reiterates its decision to withdraw from the Paris Agreement because it disadvantages American workers and taxpayers." As a result of Washington's willfully unilateralist approach, the United States is the only country rejecting the Paris climate change agreement. This outcome was especially irritating for French President Emmanuel Macron, who, before the summit, called climate change a red line issue for the G20.

Regarding the World Trade Organization, the most important international multilateral trading platform, the leaders reaffirmed "their support for its necessary reform." They also addressed the critical situation in the WTO dispute settlement system by agreeing that action needs to be taken to keep the system running.

The WTO's Appellate Body, its top court for trade disputes, has been sliding in paralysis as the United States has blocked new appointments of judges, claiming that the court has overstepped its mandate. Among the WTO's 163 members, 114 have called for an immediate end to the American veto.

Any major push to stabilize the global economy needs to include a resolution to the ongoing trade conflict between China and the United States. Positive signals came out of Saturday's meeting between President Xi Jinping and his American counterpart Donald Trump, and both sides have made some gestures of good will. China has agreed to purchase more agricultural products from America, and Washington will hold off on adding new tariffs to imports from China. They agreed to re-start their negotiations on the basis of equality and mutual respect, and will aim to seal a deal to regulate their trade relationship worth some 630 billion U.S. dollars.

For his part, President Trump made it clear that the United States harbors no hostility towards China, adding that his country is willing to cooperate with China and that he hopes there can be a better relationship between the two countries.

President Xi reiterated the position of China's government on the Taiwan issue, urging the United States to stick to the one-China principle and the three China-U.S. joint communiques. President Trump said the stance of the United States has not changed and it will continue to pursue the one-China policy, an important clarification given that the Taiwan issue is one of the fundamentals of the bilateral relationship.

Speaking at a press conference after the meeting, President Trump said he would allow American companies to continue to sell components to Huawei, the Chinese telecommunications giant, although it's not clear which companies might resume sales of what products.

Still, as China's Foreign Minister Wang Yi pointed out, the consensus that was reached sends a positive signal to the international community – and global markets.

The outcome of the G20 meeting in Osaka was not perfect. But as long as G20 members continue to implement the agreements they reach in a faithful manner, there are reasons to remain optimistic.

Note: Xu Qinduo is a current affairs commentator of China Radio International (CRI). This article represents his own views.