changes in the structure of our economies will take time.
what is important is that the major economies of the world have a shared vision of the path of this change: what actions countries should avoid; what actions countries need to take and, crucially, over what period it should happen.
this is why the g20 – and the meeting in seoul – is so important.
together we can agree a common approach.
we can commit to the necessary actions.
we can agree that we will hold each other to account.
and just as china played a leading role at the g20 in helping to avert a global depression
so it can lead now.
i know from my discussions with premier wen how committed china is to actions to rebalance its economy.
china is already talking about moving towards increased domestic consumption
better healthcare and welfare
more consumer goods as its middle class grows
and in time introducing greater market flexibility into its exchange rate.
this can not be completed overnight
but it must happen.
let’s be clear about the risks if it does not
about what is at stake for china and for the uk – countries that depend on an open global economy.
at the worst point of the crisis, we averted protectionism.
but at a time of slow growth and high unemployment in many countries those pressures will rise again
already you can see them.
countries will increasingly be tempted to try to maximise their own growth and their own employment, at the expense of others.
globalisation – the force that has been so powerful in driving development and bringing huge numbers into the world economy could go into reverse.
if we follow that path we will all lose out.
the west would lose for sure. but so too would china.
for the last two decades, trade has been a very positive factor in china’s re-emergence on the world stage.
it has driven amazing growth
and raised the living standards of millions.
trade has helped stitch back china’s network of relations with countries across the world.
we need to make sure that it does not turn into a negative factor.
just as the west wants greater access to chinese markets
so china wants greater access to western markets
and it wants market economy status in the eu too.
i had very constructive talks with premier wen on exactly this issue yesterday.
i will make the case for china to get market economy status in the eu
but china needs to help, by showing that it is committed to becoming more open, as it becomes more prosperous.
and we need to work together to do more to protect intellectual property rights