Xi hails APEC's role in open world economy

BALI, Indonesia -- Chinese President Xi Jinping said here on Monday that the Asia-Pacific Economic Cooperation (APEC) should play a leading role in maintaining and advancing an open world economy.

Noting that the world economy is still confronted with daunting challenges before achieving full recovery and sound growth, Xi said APEC must face them head-on with courage and resolve.

APEC "should play a leading and coordinating role in maintaining and advancing an open world economy, and in making sure that the Asia-Pacific continues to serve as an engine for global economic recovery," Xi said in a keynote speech at the APEC economic leaders' meeting.

APEC leaders kicked off a two-day gathering on Monday in the Indonesian resort island of Bali, with sustainable growth and regional cooperation high on the agenda.

In his speech, Xi put forward a three-point proposal for APEC.

First, APEC member economies should work together for the common development of the Asia-Pacific through increased macro-economic policy coordination, Xi said.

With the economies of APEC members closely intertwined in economic globalization, they must amplify the positive effects of macro-economic policy coordination while preventing or reducing the negative spillover, and pursue win-win cooperation in an open and inclusive spirit, he said.

The Chinese president said major reserve currency issuers should implement responsible macro-economic policies, act cautiously in adjusting their policies and increase communication and coordination with other economies.

"APEC should play a similar role in promoting an open environment for development in the Asia-Pacific, featuring policy coordination, interconnected growth and converging interests," Xi said.

Second, APEC members should maintain economic and financial stability in the Asia-Pacific through factual assessment of the situation and cool-headed response to the challenges, Xi said.

He noted that world economic fluctuations have brought challenges to the financial market, capital flow and exchange rate stability in the Asia-Pacific, exposing the region to more economic and financial risks.

"We must prevent risks from piling up and causing major economic and financial turbulence in the Asia-Pacific," Xi said, while expressing confidence about the future of the region.

Third, APEC members should take a long-term perspective, promote profound economic restructuring and give stronger impetus to the sustained development of the Asia-Pacific, Xi said.

"Asia-Pacific economies should accelerate readjustment of their respective economic structure and deepen the integration of the industrial chain and the value chain so that the Asia-Pacific will take the lead globally in forming new industrial clusters for growth and continue to serve as an important engine for the world economy," he said.