The G20 Summit will focus on global economic growth. (Photo : Getty Images)
China is making sure that the G20 Summit agenda is clear as the People's Bank of China (PBC) vice-governor reveals a consensus among G20 members to "use all policy tools to support growth."
According to China Daily, Yi revealed the agreement among G20 member nations in a statement on Thursday ahead of the G20 Leaders Summit on Sunday and Monday, Sept. 4 and 5.
During the event hosted by the city of Hangzhou in the Zhejiang Province, economic leaders of 20 member nations will discuss important issues that would determine the global economic balance.
All Policy Tools
During his talk, Yi mentioned the use of "all policy tools" in order to support growth in the individual countries and the world in its entirety.
China Daily explained that the PBC vice governor was referring to monetary and fiscal policies that could be used to reform the global financial system.
"This marks a milestone in the G20's recent history of macroeconomic policy coordination," Yi added.
During the G20 Leaders Summit, China intends to improve "policy-level coordination" among member countries in order to achieve sustainable growth not only for the Middle Kingdom bur for the global economy.
"China is playing a leading role in helping the world avoid a war of currency depreciation," Bank of Communications Chief Economist Lian Ping explained.
According to Lian, China is a significant factor in competitive devaluation which means its willingness to be a responsible economy can be beneficial for the global scene.
"China has more important goals to achieve. Considering those more important goals, not seeking a government-engineered depreciation of the yuan is a fully rational thing for China to do. It will bring about lasting benefits for the country and the world," he added.
The Chinese Yuan
At the time, Yi also emphasized that there is "no hope" of solving problems with the devaluation of the Chinese yuan and vowed that the currency would maintain its current stability by closely coordinating with other major economies regarding the exchange rate.
Yi's statement comes in the wake of a call from U.S. Secretary of Treasury Jacob Lew urging the G20 to "foster global commitments," per the Xinhua News Agency.
In response, Yi explained China's plans to explore available policy toolkits that it could adopt to match its own circumstances.
He also explained that while the country's macro policies do have some positive effects on the sluggish demand in the near future, increasing the supply-side would be better since it promises a long-term economic growth.
