On 14 October 2020, G20 finance Ministers and Central bank governors were hosted by Saudi Arabia, chair of the G20. Meeting mainly global macro economic development and prospects, update the G20 action plan to support the global economy through COVID - 19 crisis "(hereinafter referred to as the action plan for the G20), the G20 to suspend the poorest countries debt payments initiative (hereinafter referred to as" the G20 slow initiative "), the financial sector issues such as the G20 financial issues and related outcome documents are discussed, and issued a communique. Minister of Finance Liu Kun attended the meeting and made a speech. Vice Minister Zou Jiayi accompanied him.

The meeting noted that the global economy showed signs of recovery as countries reopened their economies and supportive policies took effect, but the recovery was uneven and highly uncertain, and faced high downside risks. The G20 reaffirmed their commitment to continue to use all available policy tools, if necessary, to safeguard lives, jobs and incomes, support economic recovery and enhance the resilience of the financial system in the face of the current situation. The meeting endorsed an updated G20 Action Plan to address the evolving public health and economic situation in a timely manner. The parties indicated that they will continue to implement the G20 debt relief Initiative and support the extension of the debt relief initiative by six months, and decide whether to extend it for another six months in April 2021 according to the economic and financial situation. Given the scale of the COVID-19 crisis and the significant debt vulnerability and deteriorating economic prospects faced by many low-income countries, the next stage may require a consensus-based, case-by-case approach to the debt relief Initiative's follow-up debt management, and discussions will continue. The meeting reaffirmed its commitment to further progress on the two-pillar approach to addressing the challenges of digital taxation in the economy and looked forward to a consensus-based global solution by mid-2021. Italy, the G20 presidency in 2021, briefed all parties on its preliminary consideration of the priorities and direction of next year's G20 work.

Liu noted that the COVID-19 epidemic is still spreading globally, the global economic recovery is uneven and uncertain, and the downside risks are prominent. China supports the G20 in approving the updated G20 Action Plan. We welcome the significant progress made in addressing the challenges posed by digital taxation in the economy and stand ready to remain open and work towards a multilateral consensus solution acceptable to all parties. In the spirit of President Xi Jinping's important instructions, China is accelerating the implementation of the G20 debt relief initiative in an all-round way and making positive progress. China appreciates and supports the extension of the G20 debt relief initiative and is ready to actively participate in the discussion on debt disposal in the next stage. As a platform for international macroeconomic policy coordination, the G20 should focus on political guidance and principled guidance and should not involve too many technical details in debt handling. Multilateral development Banks should actively participate in debt management and contribute to addressing the debt vulnerability of low-income countries on the premise of ensuring their financial soundness.

Liu said that since the outbreak of the epidemic, the Chinese government has coordinated epidemic prevention and control with economic and social development, achieved steady economic recovery, and major indicators have recovered. The Chinese government will continue to deepen reform and opening up, actively play the role of public finance, promote the formation of a new pattern of development in which both domestic and international cycles reinforce each other, and strive to achieve the year's economic and social development goals and tasks.

Source: Ministry of Finance, PRC