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Policy Contribution

The twenty-first century needs a better G20 and a new G7+

In an environment of rapid change in global patterns of trade and wealth creation, a new revamped (but highly representative) grouping should be created within the G20, to provide leadership on key economic policy matters. Euro-area members should give up their individual seats in this G7+, allowing room for China and other large emerging economies. 

By: and Date: November 14, 2014 Topic: Global economy and trade

Read also Jim O’Neill and Alessio Terzi’s survey of the G20 sherpas ‘The world is ready for a global economic governance reform, are world leaders?

During the 2008 financial crisis, the G20 was hastily elevated to ‘global economic steering committee’. In the early stages of the crisis, the G20 was an effective forum for crisis containment. As the crisis has eased, however, the G20 has lost both direction and momentum. Governments and policymakers have felt less need to act in unison and have rather refocused on their national agendas, as is their duty and primary function. However, effective global governance is needed permanently, not just in crisis times. It is desirable to have more representative and effective global governance that, among other things, is equipped to prevent crises rather than just react to them.

In an environment of rapid change in global patterns of trade and wealth creation, a new revamped (but highly representative) grouping should be created within the G20, to provide leadership on key economic policy matters. Euro-area members should give up their individual seats in this G7+, allowing room for China and other large emerging economies. Without euro-area countries taking such a step, it would be impossible to reconcile effectiveness and representation in this new G7+, which would take charge of decision making on global economic imbalances, financial and monetary issues. All existing G20 countries, including individual euro-area countries, would however remain in the G20, which could potentially expand and would remain the prime forum for discussion on all remaining matters at global level.

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Apr
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From viruses to wars: recent disruptions to global trade and value chains

How have events in recent years impacted global trade and value chains and how can we strengthen these against future disruptions?

Speakers: Dalia Marin, Adil Mohommad and André Sapir Topic: Global economy and trade Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Is China’s private sector advancing or retreating?

A look into the Chinese private sector.

Speakers: Reinhard Bütikofer, Nicolas Véron, Alicia García-Herrero and Tianlei Huang Topic: Global economy and trade Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Podcast

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What to expect from China's innovation drive?

How much has China progressed technologically?

By: The Sound of Economics Topic: Digital economy and innovation, Global economy and trade Date: April 6, 2022
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Blog Post

Is the private sector retreating in China? Not among its largest companies

Though private ownership does not free companies from the pervasive influence of the Communist Party, China’s private and state sectors are not equivalent; China’s largest firms are growing faster than their state-owned counterparts.

By: Tianlei Huang and Nicolas Véron Topic: Global economy and trade Date: April 5, 2022
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Working Paper

The private sector advances in China: The evolving ownership structures of the largest companies in the Xi Jinping era

This paper documents recent structural changes in China’s corporate landscape, based on company level data, providing a complementary perspective to that of official Chinese statistics.

By: Tianlei Huang and Nicolas Véron Topic: Global economy and trade Date: April 5, 2022
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Opinion

Early Warning Brief: China’s contorted response to Russia sanctions

The spectre of a democratic Russia aligned with the West is probably a more serious concern for Beijing than what it risks losing by supporting Russia, which is exactly why China has arrived at its contorted position on the current military conflict in Ukraine.

By: Alicia García-Herrero Topic: Global economy and trade Date: April 1, 2022
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Beijing will support Moscow as long as it does not fall foul of Western sanctions.

By: Alicia García-Herrero Topic: Global economy and trade Date: March 16, 2022
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Blog Post

Six reasons why backstopping Russia is an increasingly unattractive option for China

China has too much to lose from aligning with Russia over Ukraine.

By: Nicolas Véron and Alan Wm. Wolff Topic: Global economy and trade Date: March 15, 2022
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Opinion

China offers Russia respite but not a solution

Beijing could provide greater assistance to its partner while benefiting from greater energy and military security, but this option is not without risk, nor for Moscow, which would become more dependent on the Asian giant.

By: Alicia García-Herrero Topic: Global economy and trade Date: March 14, 2022
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Blog Post

Can China bail out Putin?

Even with help from China, Russia will be unable to mitigate the immediate impact of Western sanctions.

By: Alicia García-Herrero Topic: Global economy and trade Date: March 9, 2022
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Past Event

Past Event

Where is the Chinese economy heading in the aftermath of the pandemic?

This closed-door event for Bruegel members will policy options to tackle the challenges that China's economy faces.

Speakers: Helge Berger, Wenjie Chen, Alicia García-Herrero and Guntram B. Wolff Topic: Global economy and trade Date: March 8, 2022
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