Full coverage: G20 Hangzhou Summit

I'm joined now by my colleague Yang Zhao and Mr. Liu Youfa, former president of the China Institute of International Studies to give us more information about the upcoming meeting. First we go to Yang Zhao, how about we start with what is topping agendas this time in Hangzhou?

YZ: At every summit, the host country establishes the agendas based on its assessment of the global economy. So with the agendas this time around, you can see what’s topping the to-do list in the eyes of the Chinese government, and what their proposals are. So, let's take a look at this one step at a time.

The most important thing here is to find a NEW growth driver. If you look back in the history of the G20 Leaders Summit, you will find that it was created as a response to the financial crisis between 2008–2010. So during the first few years, the pressure was on world leaders to think about how to stop the crisis and get the economy back on track as fast as possible. But this is the first time the focus has been on mid- and long-term plans.

The crisis may be over but recovery is too slow. Fiscal stimulus and easy monetary policy is no longer as viable as it was before. So in the coming days, you will probably hear a lot about innovation, the new industrial revolution and the digital economy. And these are also China’s top domestic priorities.

Another topic is reform. A major part of the reform is for emerging-market countries to have a bigger say in international organizations such as the International Monetary Fund and the World Bank. Given that these reforms have yet to be fully implemented, this time this topic will continue.

Last month, G20 trader ministers set a goal of cutting global trade costs by 15 percent and to reduce protectionism, something which has grown significantly. According to the World Trade Organization, G20 markets imposed a record 145 new trade-restrictive measures in just seven months, from last November to May this year, the most since 2009.

China is the world's largest developing country, and it is duty to bring benefits to others. Actually more developing countries than ever before will come to the Hangzhou summit at China’s invitation. China is also likely to seek greater backing from the G20 as it pushes its “One Belt, One Road” development strategy and the role of the new Asian Infrastructure Investment Bank, which China believes can better connect global market and capital.

YZ:  So we can see monetary stimulus measures. For example in 2009, leaders agreed on a 1 point 1 trillion US dollar fund to the IMF to avert the threat of global depression. They increased IMF resources by 456 billion US dollars again following the 2012 summit.

Outcomes also include control and stabilization measures, such as in 2010 when it was decided that the advanced G20 economies would cut at least half of their fiscal deficits and stabilize or reduce sovereign debt ratios. Reform has also often been talked about at the G20. Also in 2010, guidelines were developed for IMF and the World Bank’s governance reform. In 2011, they agreed to improve trade by strengthening the World Trade Organization by considering additional trade negotiations beyond the Doha Round mandate.

There have also been some big moments for the G20 meeting itself. Like in 2009, the major outcome was that leaders designated the G20 as the premier forum for international economic cooperation, and agreed to act together to support the global recovery.