The first G20 made in China will kick off in the next few hours. The leaders of the world's leading countries will arrive in Hangzhou to address the issue of global growth. On the table China puts the objective of an innovative and sustainable development of the world economy and society; new strategies that regulate international investments and the management of trade between countries. For Professor Justin Yifu Lin, interviewed by FIRSTonline on the sidelines of the Ambrosetti Forum, the hope is that world countries clearly understand what the real needs are to face the crisis and reach a good agreement on the best way to support growth.
“Most countries are trying to fight the crisis at a domestic level – explains Yifu Lin to FIRSTonline – but it is a global issue and therefore a global approach is needed. In particular, I believe that the priority should be reaching an agreement to stimulate structural reforms globally”.
Reforms that are difficult to implement because they have negative effects in the short term. So how do we actually achieve this goal?
“Countries should reach an agreement on the need to implement structural reforms and on how to support them globally, reforms that each country would then decline locally on its own needs. For example, I think it could be useful to create a sort of new vehicle, a new global fund to finance infrastructure, thus helping countries with fewer resources to carry out these reforms. The thrust of these reforms will create jobs and open up opportunities for growth. Countries like China could use sovereign wealth funds to finance it."
As global institutions call for collaboration and concerted global action, the specter of protectionism has reared its head. An analysis by the independent think tank Global Trade Alert has pointed out that since 2009 the G20 countries have introduced 4.000 trade barriers and financial incentives that distort foreign direct investment. Thus Barack Obama and Angela Merkel have made it known that in Hangzhou they will speak against protectionism. But if the leaders of the main world nations speak out in favor of free trade, the malaise is widespread and almost all the G20 governments have long been calling for restrictions on imports, especially from China itself, with the steel issue at the top of the list. tensions.
“We must continue to support free trade, protectionism only apparently seems to be useful for safeguarding jobs at the domestic level but then turns out to be negative. It is a tool that only creates losses for everyone”.
If the Chinese goods that invade European markets generate widespread stomach aches, not so Beijing's passion for football. Chinese entrepreneurs are buying up soccer teams around the world. The reason?
"Football is a national aspiration and the Italian one is certainly one of the most loved in China".
But is it also a good investment?
“It has to be, of course we also like to make good investments. The brand recognition of football teams can certainly raise awareness of Italian products in China and expand the market of Chinese consumers. Which is a good prospect for both Italy and China”.
