G20 summit opening today or communique mentioned steel overcapacity problem
Leaders of the Group of Twenty summit will be held in the eleventh Hangzhou 4 to 5 September. 4 pm, the head of the foreign delegations have arrived at the meeting. Subsequently, President Xi Jinping will preside over the summit welcoming ceremony, the opening ceremony and other activities. That night, the couple will meet President Xi Jinping heads of foreign delegations and the couple held a welcoming banquet, President Xi will be a speech at the dinner.
Media quoted informed sources, the problem of excess global steel G20 become one of the hot spots, will be a place in the G20 communique.
"We recognize that, including some industry overcapacity, including structural problems, due to the weak global economic recovery and weak market demand and further deterioration of the trade and employment were adversely affected," a copy of the draft summit communique obtained by reference to the media "we recognize that the presence of iron and steel and other industrial overcapacity is a global problem that needs to be a collective response."
About half of the global production of steel China has shown determination to capacity. President Xi Jinping, published in the 3rd Group of Twenty-China Business Summit keynote speech on the opening ceremony, said, takes five years before Yajian crude steel production capacity from 100 million to 150 million tons. China in regard to production capacity, with the largest, the most practical measure, when it comes it will be done.
Overcapacity is not conducive to global economic growth
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and other industries excess capacity on the one hand from the slow global economic recovery, on the other hand, unfavorable international market, it is one of the causes of weak global economic growth. China accounts for about half of the world production of steel, iron and steel overcapacity issues as the core of Chinese steel overcapacity think need to force from the demand and supply side.
Vice Premier Wang Yang, 30, said, "steel and other industry overcapacity is a global problem, the world economic recovery is slow and sluggish demand results require a collective response."
Vice Finance Minister Zhu Guangyao, held on the 2nd G20 news conference that China is the world's major economies in the first cut overcapacity; cut capacity blooms can blame some more some less beneficial cooperation in the global economy. By 2020 China plans to cut up to 150 million tons of steel production capacity.
July G20 finance ministers and central bank governors meeting announcement also mentioned the problem of excess production capacity:
We recognize that the global economic recovery is slow and sluggish market demand so as to include the excess capacity in some industries, including the more serious structural problems, these problems of trade and workers adversely affected. We recognize, steel and other industry overcapacity is a global problem that requires a collective response. We also recognize, support subsidies and other types of government or government-supported agencies could lead to market distortions and contribute to global overcapacity, and therefore need to be concerned about. We are committed to strengthen communication and cooperation, committed to taking effective measures to deal with these adjustments, in order to strengthen the functioning of markets and encourage adjustment.
Response to the global downturn in economic growth "critical gun medicine"
According to media, G20 draft communique also warned that volatility in the financial markets to bring growth downside risks, Member States will use all available tools to promote their economic development. The draft said that monetary policy alone can not stimulate balanced growth, more fiscal measures for governments to open and a green light.
The draft communique said: "We reiterate previous commitments on the exchange rate, we will not include competitive devaluation, they will not develop the exchange rate target for competitive purposes."
Chinese central bank vice governor Yi Gang said on the 1st, G20 consensus, for the purpose of money is not a competitive devaluation, and the exchange rate for closer communication and coordination. He also said, as well as their common commitment to use all the tools, both policy instruments, including short-term monetary and fiscal policies, as well as long-term structural reforms.