Mon, September 13, 2010
Business > Economy > Summer Davos 2010

Summer Davos opens to stress sustained growth while risks still prominent

2010-09-13 10:53:23 GMT2010-09-13 18:53:23 (Beijing Time)  Xinhua English

The opening ceremony of the fourth Summer Davos forum, or the Annual Meeting of the New Champions 2010 is held at Tianjin Meijiang Convention Center in north China's Tianjin Municipality, Sept. 13, 2010. (Xinhua Photo)

TIANJIN, Sept. 13 (Xinhua) -- Some 1,500 world business and political leaders gathered at the fourth Summer Davos forum here Monday to discuss how to maintain the momentum of the recovery while promoting sustained growth two years after the financial crisis sent the world economy into a recession.

"At this crucial juncture when the world economy is slowly recovering, the meeting will explore the way forward for future development," Premier Wen said during his keynote speech at the forum, which is also known as the Annual Meeting of the New Champions 2010.

As one of the foremost global business gatherings in Asia, the meeting, sponsored by the Geneva-based World Economic Forum (WEF), is being held in the Chinese port city of Tianjin till Wednesday, with the theme of "Driving Growth through Sustainability".


The meeting would push forward cooperation and partnership among societies and leaders in an era of post-crisis recovery, with substantial contributions to provide the world with directions, ideas and solutions, said Klaus Schwab, founder and executive chairman of the WEF.

Although the world economy has been moving beyond the recession since the financial crisis in 2008, the market is still unstable and the future uncertain. The meeting tries to sort out a solution to avert a double-dip recession and deal with the transformational crisis.

The world economy still faces prominent systemic and structural risks as the impact of the financial crisis has not been fully eliminated, Wen said.

"The world economy has yet to enter a benign cycle of steady growth, and systemic and structural risks are still prominent," he said.

Wen urged the creation of conditions for sustainable development through structural reforms while continuing to energize the recovery, which is also the main topic at the meeting.

"Sustainability will be the key word for this Summer Davos. For our company or any world company, sustainability will be the key priority," said Eckhard Cordes, chairman of the Management Board and Chief Executive Officer of Metro Group.

Decision-makers have to cope with tremendous time pressure and the ever-increasing complexity of issues, he said.

"We must all focus on how to turn proposals into viable policies (at the Summer Davos this year)," said Schwab in an earlier meeting statement.

"We have to continue to venture to new horizons, reflecting the world as it integrates new players," he said, as the meeting would also touch upon other important issues, such as emerging economies and exploration into new markets.

The trend of shifting the global economic development to Asia is ongoing, and developing economies will continue to make contributions to the global economic recovery, said Chinese Vice Foreign Minister Cui Tiankai during a panel discussion.

Developing countries are playing an increasingly greater role in regional cooperation, which is a historic development, a more equitable and balanced development, and "we should certainly welcome that," Cui said.


According to Wen, the fast economic stabilization and rapid economic growth of China and other major developing countries have greatly boosted international confidence in overcoming the financial crisis and provided a strong impetus to world economic growth.

China's early rebound and its fast expanding economy has attracted global attention at the meeting, especially its future path in this post-crisis era.

The country has achieved an early economic rebound from the crisis, as its massive stimulus secured the country's sound momentum of economic development, with its economy expanding 9.1 percent in 2009 and 11.1 percent in the first half of 2010, Wen said.

"China's economy is now in good shape, featuring fast growth, structural improvement, rising employment and basic price stability," he said.

Domestic demand, especially consumption, has played an increasingly strong role in driving China's economic growth in the past two years, as the country has arranged to accelerate the transformation of the nation' s economic development pattern and economic restructuring, Wen said.

Wen focused on tackling problems in China's economy, such as unreasonable economic structuring, rising costs of resources and environmental constraints, uneven urban-rural and regional development and lack of coordination between economic and social development, he said.

China will also emphasize maintaining stable macro-economic control policies, according to Wen.

"While maintaining the continuity and stability of our policies, we will make macro-control measures more targeted and flexible to consolidate and strengthen the sound momentum of development," he said.

Further, new energy, aerospace, and other emerging industries will be the focus of China's next round of economic development, he added.

Wen also said that China is committed to creating an open and fair environment for foreign invested enterprises, as some foreign businesses have voiced concerns over a worsening business environment in China, which also faces challenges including rising costs and inflation.

He added that all foreign invested enterprises registered in China enjoy national treatment. In government procurement, China gives equal treatment to all products produced in China by foreign enterprises and Chinese enterprises, alike.

Participants at the meeting have also expressed optimism and commitment towards China's business environment.

Glenn Jordan, president of Coca-Cola's Pacific Group, said China is "extremely important", even as more local rivals are prepared to gain larger market shares with lower margins.

"We are committed to long-term growth and investment in China," Jordan said at a TV debate during the Summer Davos.

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