Leaders of the G20 nations have agreed to oppose protectionism, President Xi Jinping said after hosting the G20 summit in Hangzhou. Freer trade poses a dilemma for the leaders of several countries, who have to contend with rising populism and a perception that the global economic order exemplified by the G20 is not working for ordinary people. Xi said that relying only on fiscal and monetary policy for growth would not work. “We need to reignite the engine of growth via innovation,” he said, adding that the G20 had adopted “guiding principles” for investment policy management. “It is the world’s first framework of multilateral investment rules,” he said without giving details. German Chancellor Angela Merkel illustrated the delicate approach, calling for the system to be made fairer but also speaking out against the temptation to look inward, with “protectionist measures that put the brakes on growth.” French President François Hollande said: “France is for globalization but on condition that it is regulated, that there are principles, standards, particularly for the environment, for society.” U.S. President Obama has been promoting the Transatlantic Trade and Investment Partnership (TTIP), but many believe it will give big business unfair benefits and allow multinationals to escape regulation through the backdoor. Concluding the G20 Summit on September 5, President Xi Jinping warned about sluggish global growth, financial market turbulence and receding global trade and investment, the Shanghai Daily reports.

During the summit, President Xi also called for the transformation of the G20 from a mechanism of crisis response to one of long-term governance. Analysts said Xi’s proposals revealed China’s growing contribution to and influence on global economic governance. “China has brought many new inputs to global governance, such as promoting innovation, structural reform and strengthening development and cooperation among the developed and developing countries, which breaks new ground for achieving global development goals,” said Jia Jinjing, Researcher with the Chongyang Institute for Financial Studies of Renmin University of China. Analysts said the summit reflects a change of China’s role in global governance from a participator to a lead reformer.