IMF Head Discusses Global Economic Challenges With Chinese Leadership

"Washington's participation in the Belt and Road initiative will have knock-on effects, encouraging its allies to see the initiative from a more rational and objective perspective, and thus help win Beijing and its infrastructure projects more worldwide understanding and influence". The People's Bank of China also signed memorandums of mutual understanding with the International Monetary Fund and the Czech National Bank.

Chinese President Xi Jinping welcomed leaders, including Russian President Vladimir Putin, Philippine President Rodrigo Duterte, Indonesian President Joko Widodo, Turkish President Recep Erdogan and Greek President Alexis Tspiras.

Xi also pledged an additional assistance worth 60 billion yuan ($9.5 billion) for developing countries and global organisations participating in the initiative to improve people's well-being over the next three years.

"More importantly, although Pakistan was excluded from India's regional integration agenda, the construction of the China Pakistan Economic Corridor is expected to shore up weak links of regional integration between China, India and their neighbouring regions, especially Central, West and South Asia".

India skipped the event in opposition to the China-Pakistan Economic Corridor (CPEC), though most of its neighbours, including Pakistan Prime Minister Nawaz Sharif, attended.

Xi tried to mollify concern about a potential Chinese-dominated bloc by saying "Belt and Road" is meant to be an "open and inclusive platform for development". "For China, India and Pakistan, the Belt and Road Initiative will foster friendship and cooperation in a wide variety of developmental realms".

Also called "One Belt, One Road" (OBOR), the initiative involves expensive infrastructure projects-led by Chinese state-owned companies-in dozens of nations. "The Belt and Road programme should entrench this role further but until now it has been mostly a catchy phrase to go along with talk about China's global economic strategy". This can be proved by the many differences between China and the US.

China has signed cooperation agreements with 14 global organizations on aid programs proposed at the just-concluded Belt and Road Forum for worldwide Cooperation, the country's Ministry of Commerce said Tuesday.

While he said "perception can become more powerful than the reality", he added that China "remains a very closed trade and investment market especially when compared to the USA". We always want India to participate in the Belt and Road initiative.

The initiative - a modern Silk Road of trade, investment and infrastructure development - is China's biggest foreign initiative to date. He said deep-seated problems in global development had yet to be addressed effectively, with worldwide trade and investment sluggish, and economic globalisation encountering headwinds.

  • Leroy Wright