Conference Opening Speech

China and the World Economy: Crisis, Adjustment and Global Prosperity

 

Professor Qixiang Sun

Dean, School of Economics, Peking University

17^{th September, 2010}

 

 

Distinguished Guests, Ladies and Gentlemen, Good Morning!

 

It is my great pleasure to welcome you all to School of Economics, Peking University, and this joint PKU - Oxford University conference on `China and the World Economy: Crisis, Adjustment and Global Prosperity`.

 

Since 2007, the subprime crisis, which originated in the United States , has evolved into a global financial crisis. World economic growth suffered a heavy blow, and has pushed some countries to the verge of bankruptcy. This wide spread, large scale, highly destructive financial crisis, has caused economists to revisit, and sometimes question their theories as policy makers from various countries had to make up new economic policies on the fly to salvage their economies.

 

In the analysis and discussion of the causes, impacts and countermeasures of the crisis, three years have slipped away. Although some major economies have shown signs of recovery, we can still feel the power of the crisis through the jobless rebound in the US , the Greek debt crisis and the latest concerns about the possible `double dip` caused by excessive government intervention. Some economists pessimistically forecast that the crisis will have its second shock wave in the next 1-2 years.

 

However, we believe that the twisted road can lead to a bright prospect. Governments are undertaking efforts to stimulate the economic recovery, and economists are casting their thoughts on how the global economic system will change after this crisis and how to move forward for continued and sustainable global economic prosperity. China , as a fast-rising economic force, has played a well recognized important role in the battle to achieve global economic recovery. The Chinese government has earned international high praise for introducing the simulative economic policy and expansionary monetary policy so quickly and decisively. China `s economic development has given a positive impetus to the world economy, and its stabilizing effect in the future global economic pattern is widely hoped for.

 

`True difficulty lies not in the achieving but in the maintaining of success.`During this international financial crisis, China `s economy is facing great pressure of development mode conversion, and its long-standing institutional and structural problems will also be further exposed. Throughout history, every major economic crisis that has hit the world economy profoundly has also brought about new development opportunities.

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`Ancient country has the destined mission to reform. We shall take inspiration from our traditions and keep innovating.` The countries that manage to seize opportunity from the crisis will take the lead in recovery and occupy the high ground in the new round of development. During this conference we seek to explore areas of cooperation that are essential to promote a new wave of economic growth together.

 

The global financial crisis fully exposed the defects in the existing international financial system, particularly the problem of inadequate representation of developing countries in the international financial institutions. The international community should focus on the long-term perspective, and build a fair, equitable, inclusive and orderly international financial system, with principles of being comprehensive, balanced, progressive, and effective. It should reform the governance structure of international financial institutions, to shape a framework that is in favour of the world economy and healthy and stable financial development. This would also be a valuable part of solving the development issue and respecting the developing countries.

 

Established in 1898, Peking University has always been closely tied to the fate, vicissitude and transformation of China . She eternally stands at the forefront of China `s liberation, national construction and social civilization development, and has made irreplaceable contributions to the modernization progress of the nation. The School of Economics, Peking University was established in 1985. Its predecessor , the Peking University Department of Economics, established in 1912, was the first economics faculty among China `s higher education institutions. Our school holds the spirit of `Steering the economic development of the society in order to benefit the livelihood of the people`. We take the pursuit of the economical rule as our responsibility, and consistently seek to contribute to the social progress and the welfare of the people. It is our duty as economic academics to explore ways out of the mist of present crisis, offer our insight and prudence, examine economic issues of importance, find the countermeasures for China and the world, and eventually lead the public to future recovery and prosperity.

 

The University of Oxford and the Chinese Economic Association of Europe have always been interested in China `s development and its impact on the global economy, and have both done extensive researches in this field. This conference is co-hosted by The School of Economics, Peking University , The University of Oxford, and the Chinese Economic Association of Europe. We received great support from the leaders of Peking University and many friends, domestic and abroad. We also had the privilege of inviting prominent scholars from Oxford, and other prestigious universities and research institutes in China to share their opinions with us in keynote speeches. Please allow me to express my gratitude to each and every one of the colleagues and friends who has supported and contributed to this conference.

 

Reviewing the past and facing the fact is to gain a clearer knowledge of the future. This conference will address mostly the impact of the global economic crisis on China , the responses of China at national, regional and firm levels, and their influences on world economy system, which ensure the future global prosperity. We have received many papers of high quality from authors all over the world. This afternoon, some of the accepted papers will be presented respectively in five sessions according to the different themes. We welcome all those in attendance to contribute to the success of this conference by participating fully in discussions that follow the presentations.

 

Ladies and Gentlemen, there has not yet been a solution for the problems in front of us. Undoubtedly, problems vary among different countries and so should the solutions. But we can, on this occasion, exchange experiences, form an alliance and face the challenges hand in hand. I believe that through these joint efforts, this conference will be able to generate deeper understanding and better answers to the questions such as `how to deal with the financial crisis going forward` and `what`s China `s role in attempts to achieve a global economic recovery`.

 

May the conference be successful and fruitful.

 

Thank you!