G20 summit to map recovery route

BEIJING, Sept. 24 -- The G20 summit in Pittsburgh, the third of its kind, has been highly anticipated for the active role it could play in bringing a stable and lasting momentum to the emerging global economic recovery.

The two previous rounds, in Washington and London in November last year and April respectively, contributed much to the efforts to prevent the collapse of the international financial structure and the world economy from a full-blown recession.

Currently, the world economy has turned for the better and some major economies have witnessed signs of rejuvenation in different degrees. In this context, Germany and France, two major economies in Europe both enjoying positive growth in the second quarter, claimed it is time for the Pittsburgh summit to consider the withdrawal of large-scale economic stimulus plans to avoid inflation and an increase of financial burden on countries. The conclusion runs counter to the message delivered at the meeting early this month of G20 finance ministers and chiefs of central banks. At the gathering, most participants believed it is too early to conclude that the crisis is over, and that the world economy still faces numerous uncertain factors. To consolidate the nascent recovery, they suggested that countries should adopt a cautious approach when considering stopping of stimulus plans.

China stands by this viewpoint, and a series of stimulus measures it has put in place has achieved notable effect in spurring the growth of its export-dependent economy. However, the recovery lacks a strong foundation to bolster the country's foreign trade landscape while its moves to transform the domestic economic development model as well as employment have met with less success. To carry forward the momentum of initial economic recovery, China should continue its macroeconomic policies of proven efficacy and stick to the pro-active financial and moderately loose monetary policies.