The Third World Finance Forum Wuhan Summit on “Redefining” Post-Pandemic World Order

Source: CBGG   

Published: 2020-12-07

The World Finance Forum Wuhan Summit & the 3rd World Finance Forum took place in Wuhan, China from December 3 to 5, 2020. The summit was hosted by the World Finance Forum and co-hosted by the Center for BRICS and Global Governance(CBGG), a think tank in China, and the Reinventing Bretton Woods Committee. Themed “Redefining the World Economic and Financial Order in the Post-Epidemic Era”, the forum focuses on the changes and future of the world economic, financial and technological order, providing a platform for in-depth analysis and exchanges on climate change, green finance, digital economy, financial regulation, cross-border investment and other issues.

Chen Yuan, Vice Chairman of the 12th National Committee of the Chinese People’s Political Consultative Conference and former Chairman of the China Development Bank; Zhou Xianwang, Deputy Secretary of Wuhan Municipal Committee and mayor of Wuhan City; Wang Zhongmin, Former Vice Chairman of the National Social Security Fund Board, Vice Chairman of the World Finance Forum, Chairman of the CBGG Academic Committee; Feng Xingke, Director of the Center for BRICS and Global Governance(CBGG), Secretary General of the World Finance Forum; and Mark Uzan, Co-Sponsor of the World Finance Forum, and Executive Director of the Reinventing Bretton Woods Committee, delivered a live or video address at the opening ceremony of the Forum on December 4. Feng Xingke, Director of CBGG and Secretary-General of the World Finance Forum presided over the summit.

Mr. CHEN Yuan, said at the opening ceremony that the global financial industry is facing new opportunities and challenges in the waves of Covid-19 and digitalization. The pandemic has served as a catalyst for the digital transformation in finance by accelerating and deepening the integration of digital technologies and financial services, when the rise of the digital economy opens up new avenues for the financial industry. New economic models call for new financial services. Fintech, a product of the intensive integration of finance and technology, is a paradigm of the “New Finance” and a key driver of the upgrading of the modern financial industry. The capabilities of traditional financial institutions to develop and employ fintech will be a valuable indicator of their future competitiveness. Data is becoming an increasingly important factor of production that has drastically transformed the financial industry. 

While digitization improves financial efficiency, it magnifies the complexity and vulnerability of the financial system. While it pushes the boundaries of financial services, it also increases the infective and destructive power of financial risks. While digitization inspires innovative financial models, it complicates regulation. And while it creates new businesses, it also places unprecedented requirements on the financial industry. Today, integrity and innovation are essential for global financial governance in such a volatile and complex political and economic landscape across the globe. We must remain aware of the risks as we capitalize on the opportunities for digital development.

The financial services sector is the lifeblood of the economy, the development of which, in turn, depends on sound economic growth, noted Mr. Chen. Therefore, the financial industry needs to put the real economy first. As China is shifting to a dual circulation economy in which its domestic economic cycle plays a leading role while the international economic cycle remains its extension and supplement, the financial industry in China is expected to facilitate this paradigm shift. Technological innovation requires strong support for it to nudge China’s factor-driven economy to an innovation-driven one. Capital is key to current and long-term growth; credit, the foundation of finance, is key to the transformation of money into capital. Bad credit inevitably breeds financial instability. Internet and digital finance are, essentially, financial in nature. They are required to follow the laws governing how the financial machine works and to operate in accordance with relevant laws and regulations, and is subject to good credit scores. At present, to keep the credit of the country, enterprises and individuals at good standing is crucial for financial governance. When there is solid credit in each and every link across the financial system, the system itself stands strong. It is therefore necessary to accelerate infrastructure development, including an optimized credit investigation system, in order to better serve and regulate digital finance with digital technologies. At the same time, it is vital to upgrade debt credit and take it to the next level—equity credit and even international equity credit which is yet to be put in place, so as to bolster technological innovation and transnational collaboration, especially in digital technologies, which serves the financial security of all countries.

Mr. Chen Yuan stressed that we now need to adopt a two-pronged approach pursuing both financial innovation and better regulation, whereby laws and regulations are respected and financial stability secured. New formats of financial services continue to emerge owing to the growing application of new financial technologies, making our lives easier by boosting efficiency but also giving rise to higher financial risks. It is thus important to strike a balance between invigorating the market through greater financial innovation and openness and strengthening financial regulatory capabilities. More efforts are required in infrastructure and institutional development. Both regulators and financial institutions are expected to reinforce their knowledge bases and expertise in technology and digital economy. It is also critical that the financial regulatory system be enhanced through technological innovation and advancement, including AI and blockchain, in order to break down information silos through data sharing and to prevent financial risks. All this requires close cooperation and coordination between regulators, financial institutions, and technology enterprises.

Mr. ZHOU Xianwang, mayor of Wuhan, said at the opening ceremony that the year 2020 was extraordinary and extremely testing for Wuhan. Faced with unprecedented challenges, the people of Wuhan made heroic efforts and achieved what was beyond all expectations. The city’s war against Covid-19 has delivered significant outcomes, with Wuhan setting the benchmark for recovery from the pandemic. Now, the global financial industry has risen above the Covid-19 shockwaves, growing and evolving even faster than before amidst all the risks and challenges. In order to deliver China’s 14th Five-Year Plan, Wuhan will endeavor towards a key hub for domestic and international economic circulations, the financial heart in Central China and a national technological and financial center. With that, Wuhan cordially invites you to join our journey to venture into new financial markets, create new financial services, empower greater financial openness, and explore new paths for risk prevention.

In the keynote speech of the 3rd World Finance Forum Wuhan Summit, Zhu Guangyao, former Vice Minister of Finance, Chief Advisor of CBGG and the World Finance Forum, Evan Greenberg, Chairman and CEO of Chubb, Chen Liming, Chairman of IBM Greater China, Jin Zhongxia, Executive Director of the International Monetary Fund in China, Zhu Xian, Vice President and Chief Operating Officer of the BRICS New Development Bank, Zeng Guang, member of the high-level expert group of the National Health Andersen Commission, and Zhao Hualin, Vice-Minister of SASAC. Ge Guorui, Chairman of the American Chamber of Commerce in China, Jin Canrong, Academic Member of CBGG, Professor of the School of International Relations of Chinese Min University, Song Min, Dean of the School of Economics and Management of Wuhan University, Senior Vice President and CFO Duan Dawei, Chairman of the Energy Chain Technology, Lin Le, etc., delivered keynote speeches via live or video.

Mr. Evan Greenberg, former Chairman of the U.S.-China Trade Commission, Chairman and CEO of Chubb, said at the Third World Finance Forum Wuhan Summit, it’s an honor to attend the event held in Wuhan, albeit remotely. He would like to take this opportunity to commend the people of Wuhan, who set a heroic example in winning the fight against the COVID-19 outbreak, and to the nation overall for its successful control of the pandemic. Earlier this year, as the outbreak became known to the world, his company Chubb was proud to provide assistance in the form of critical medical supplies and clinical trial liability insurance coverage on a pro bono basis to qualified Chinese medical research and development entities.

Mr. Evan Greenberg said, the theme of this year’s conference challenges us to envision a post-epidemic era. Sadly, we are not yet in a post-epidemic era although the world urgently needs to get to one. Doing so will require new and greater levels of cooperation and healthy competition among the nations of the world that have been sorely missing in recent memory. Getting to a post-pandemic world will require all major countries putting in place and enforcing their own national standards to control the COVID-19 virus, such as testing, digital tracing, masking and social distancing. China has done a good job of that in keeping with their culture and system of governance. It will also require global cooperation to control the virus including health protocols, global surveillance and forensic capability standards. I believe the United States, Europe and China are the three regions of the world that have the influence, size and resources to lead that effort.  

Mr. Evan Greenberg said the United States should commit to upholding and advancing multilateral trade and investment agreements—including a market-oriented rules-based order following accepted norms of conduct. The U.S. can accomplish this with a two-pronged approach: First, advance trade and investment agreements focused on Asia and Europe, which should address, among other things, the critical issue of digital technology and cross-border data flows. Second, the U.S. should play a leading role to support the reform process at the World Trade Organization. A post-pandemic priority needs to focus on cooperation and competition. For the United States, that means reinvigorating American competitiveness and breaking the tactical pattern of tit-for-tat behavior with China.  

Mr. Evan Greenberg noted that another priority for world leaders is to address the growing wealth gap around the world. Globalization and technology have led to an increase in overall global prosperity. But they have also led to declining living standards for many, particularly in the developed world, and created enormous wealth for a few. Capital has disproportionately benefited versus labor. We should strive for a more even distribution of income among people, and not simply through forced redistribution. This can be achieved through efforts such as skills training and education to equip a greater percentage of our population to flourish. 

Mr. Evan Greenberg said there is no doubt that one of the most important post-pandemic priorities, not just for the United States and China but for the world, is to restore active diplomatic engagement between the two nations. The two countries represent the most important bilateral relationship in the world and we must find a way to cooperate and to compete productively and not destructively.  

An the session of Round-table dialogue and keynote speech of the forum, Xu Lin, Chairman of the China-U.S. Green Fund, Ye Yanfei, First-level Inspector of the Policy Research Bureau of the China Banking Regulatory Commission, Cao Wenlian, Chairman of the International Alliance of Silk Road Industry and Finance, Vice President of China Society of Economic Reform, Wu Weijun, Vice Chairman of Deloitte China, Qu Tao, Managing Director of French Natixis Bank, Xiong Yan, Chairman of Guofu Capital, Zong Liang, Senior Researcher of CBGG, Senior Researcher of the Bank of China, Guo Lian, former member of the China Development Bank, Li Li, head of global mergers and acquisitions at CITIC Securities, Xu Ji, chairman of China Kaiyuan International Financial Holdings Co., Ltd., Mei Dewen, president of the Beijing Environmental Exchange, Zhang Yifeng, president of the Zhongchao CreditCard Industry Development Co., Ltd., Wang Zhifeng, vice president of Tencent Financial Research Institute, Xiong Fulin, deputy general manager of China Everbright Bank Digital Finance, Cao Ying, deputy general manager of Beiyin Consumer Finance Co., Ltd., Wu Jianbin, chairman and president of Taihu Energy Valley, etc. hundreds of guests focused on climate change, green finance, the digital economy, financial regulation, cross-border investment and other issues, held high-quality dialogue, discussions and exchanges.

The World Finance Forum Charity Dinner is an important event of the 3rd World Finance Forum Wuhan Summit, which aims to promote and reward the organizations and enterprises that have contributed to Wuhan’s fight against the epidemic through the platform of the World Finance Forum. After nominated, selected and recommended by the Jury of the World Finance Forum Charity Dinner which was composed of Zhongmin, former Vice Chairman of the National Council of Social Security Fund, Vice Chairman of the World Finance Forum, Chairman of the CBGG Academic Committee, Wang Zhenyao, Director of China Philanthropy Research Institute of Beijing Normal University, and Feng Xingke, Secretary General of the World Finance Forum, Director of the CBGG and other scholars and approved by the Hubei Charity Federation. The World Finance Forum awarded the Wuhan Anti-Epidemic Corporate Social Responsibility Tribute Award to international and domestic enterprises that cooperate with the World Finance Forum and have made outstanding contributions to the fight against the epidemic in Wuhan.

Wang Zhongmin, former Vice Chairman of the National Council of Social Security Funds, Vice Chairman of the World Finance Forum and Chairman of the CBGG Academic Committee, delivered a keynote speech at the World Finance Forum Charity Dinner; Wang Zhenyao, Director of China Philanthropy Research Institute of Beijing Normal University, Chen Liming, Chairman of IBM Greater China, Yang Zhenglong, Executive Director of the Imperial Group, and Wang Tuxuan, Secretary General of the Deloitte Public Interest Foundation, and Zhang Kejun, Vice President of CJ Group China, made keynote speeches on the spot or video at the World Finance Forum Charity Dinner as an award-winning corporate representative, sharing the concept of charity and charitable activities of his company.

Wang Zhenyao, Director of China Philanthropy Research Institute of Beijing Normal University, Ma Jingfang, Vice President of the Hubei Charity Federation, Feng Xingke, Secretary General of the World Finance Forum and Director of the CBGG, on behalf of the organizers, presented the World Finance Forum Wuhan Anti-Epidemic Corporate Social Responsibility Tribute Award to Chubb Group, Imperial Group, Deloitte China, IBM, iFLYTEK, Shenzhen Lexin, CJ Group, Shandong Weiqiao Group.

The World Finance Forum Wuhan Summit and the 3rd World Finance Forum  held a series of events in Wuhan. On December 3, Zhou Xianwang, Vice Secretary of the Wuhan Municipal Committee, Mayor of Wuhan, met with guests and held talks with guest representatives such as Feng Xingke, Director of the CBGG and Secretary General of the World Finance Forum, Chen Liming, Chairman of IBM Greater China and other guest delegates. Zhou Xianwang first on behalf of the municipal committee, the municipal government to welcome all the guests to WuHan, sincerely thank for the support and help in Wuhan’s economic and social development. Zhou Xianwang said that after the outbreak of Covid-19, Wuhan has accelerated the recovery after the epidemic and the economic recovery momentum is strong. Wuhan is actively organizing the production and supply of epidemic prevention materials, and strive to support the global fight against the epidemic. The convening of the World Finance Forum Wuhan Summit will give power to the revitalization of Wuhan after the epidemic, and we hope to take this forum as a starting point to carry out closer cooperation in the new economy, blockchain, green finance and other fields. We will do a good job docking services, to provide a first-class business environment, to promote more projects landing in Wuhan. Feng Xingke and other guests said that Wuhan is a heroic city, Wuhan people are heroic people. We hope to take this forum as an opportunity to actively play professional advantages and help Wuhan to revitalize and develop with high financial quality after the epidemic. 

The World Finance Forum focuses on new ideas, perspectives, trends, practices, and dynamics of global financial governance, and invites leading minds and heavyweights around the world for in-depth analysis, digests and forecasts on the most pressing concerns in order to map the direction of the global financial reform and development. In 2018, the Forum was jointly initiated and hosted by Chinese and international partners including the Center for BRICS and Global Governance, a think tank in China, and the Reinventing Bretton Woods Committee. In June 2018, the Inaugural World Finance Forum took place in Beijing, China, the impact of which reached national and even global dimensions. In April 2019, Beijing again witnessed the success of the 2nd World Finance Forum & Belt and Road Cooperation Beijing Forum. In December 2020, the World Finance Forum Wuhan Summit & the 3rd World Finance Forum was successfully convened in Wuhan. The World Finance Forum has grown into a high-profile platform in China and the world for dialogues and exchanges on economic and financial topics across governments, industries, and academia. The Forum continues its unremitting efforts to become an international institution of world-class influence, standard, and eminence.