How does China view its current economic slowdown? What are the future prospects of China’s economy? Will China adopt any new measures to stabilise economic growth?

The fundamentals of the Chinese economy are sound. In the first half of this year, China’s GDP grew by 7.6pc, which was relatively high compared with other countries. In fact, the growth rate could have been higher had we continued with the past development model. However, we have chosen to implement a macroeconomic policy under which we will press ahead with the adjustment of economic structure in order to transform and upgrade the economy. We would rather bring down the growth rate to a certain extent in order to solve the fundamental problems hindering our economic development in the long run. In this sense, such a growth rate is the result of sound adjustment.

In specific terms, domestic demand accounted for 7.5 percentage points in the 7.6pc growth rate, and our current account surplus is now within the internationally recognised reasonable range. We have focused on improving our social security policy and stabilised and expanded employment, providing 7.25 million new jobs in the first half of this year. We are indeed confronted with difficulties such as local government debt and overcapacity in some industries, but the problems are well within control and could be handled properly.

China’s economy, the second largest in the world, is highly integrated with the world economy. China’s economic development has contributed significantly to world economic recovery. A China that enjoys more stable economic performance, higher quality of growth and better prospect of sustainable growth undoubtedly bodes well for the world economy. We have the conditions to realise sustained and sound economic development, which will expand market and development space for other countries and generate more positive spillover effect for the global economy.

You will have a bilateral meeting with President Putin on the sidelines of the G20 St Petersburg Summit. What expectations do you have for this summit? How do you see the work Russia has done in hosting the summit?

I am very much looking forward to meeting my old friend President Putin in St Petersburg. As I said during my visit to Russia last March, I hope the two sides will seize the opportune time of early spring to plough and hoe and reap a bumper harvest not only for our bilateral relations but also for peace and development in the world.

It is heartening to note that both sides are working hard to implement the cooperation consensus and agreements President Putin and I reached in Moscow, and bilateral cooperation in a wide range of areas, from economy, trade, investment, energy and law enforcement, to strategic and security matters, military-to-military relations, defence technology, local exchanges, culture and international affairs, has yielded important results or made positive progress.

This time, my meeting with President Putin will take place in autumn – the golden season of harvest. What has been sowed in spring will be turned into rich fruits this autumn. Together, we will review the progress in bilateral ties since our March meeting, set the direction and targets for cooperation in various areas in the next stage, and witness the signing of many new cooperation documents between relevant departments and companies.

I am sure that both sides will use the upcoming summit meeting as an opportunity to further capitalise on the high-level political relationship between our two countries, deepen practical cooperation across the board, intensify coordination and collaboration in international affairs, and take China-Russia relations to the next level to facilitate development efforts in both countries.

China pledges its full support to Russia’s efforts to host a successful summit. We believe that under Russia’s stewardship and with the efforts of all parties, the forthcoming St Petersburg summit will deliver positive results. By building consensus for G20 cooperation, putting forward ideas for global economic governance, and stimulating growth momentum for the world economy, the summit will serve as an important link in the course of G20’s development.

 What has made it possible for the G20 Leaders’ Summit to play an important role in tackling the international financial crisis?

The G20 consists of both developed countries and emerging economies. It operates on consensus and reflects the changing world economic landscape as well as shifts in international economic relations.

After the outbreak of the international financial crisis in 2008, the G20 was defined as the premier forum for international economic cooperation. As such, it has encouraged greater international coordination on macro-economic policies. It has taken a number of major steps, and gradually lifted the world economy out of the shadow of the financial crisis. In addition, it has promoted quota reform at the IMF and voting rights reform at the World Bank, established the more representative Financial Stability Board, and supported the WTO in playing a central role in the multilateral trading regime. By doing so, it has made important contribution to the improvement of global economic governance.

Right now, the G20 is in a transition from a crisis-management mechanism to one that is dedicated to long-term economic governance. If its members continue to follow the spirit of solidarity and win-win partnership, and take firm steps to strengthen macro-economic policy coordination, improve global economic governance, reform the international financial system, and promote global trade liberalization, the G20 will definitely embrace a bright future.

 In your view, how should the SCO better perform its security and economic functions?

In the past 12 years since the founding of the SCO, member states have forged a close community of common destinies and shared interests. In the face of complex regional and international situation, maintaining regional security and stability and promoting common development of member states has been, is and will continue to be SCO’s top priority and objective for quite a long time to come.

 What are your expectations and assessments of the upcoming SCO summit?

Since its inception, the SCO has taken solid steps in cooperation in political, security, economic, people-to-people and cultural fields and on the international stage. It has played an important role in maintaining regional security and stability and promoting common development, and is now brimming with vigor and vitality. It has become the consensus of member states to facilitate faster and better development of the organisation and to promote the attainment of common targets.

The SCO Bishkek Summit will take place against two important backgrounds. First, there have been new changes in the region and the world. In-depth adjustments in global economy, persistent turmoil in west Asia and north Africa, and new complexities in the Afghanistan issue have all posed new challenges to regional security and stability and to SCO cooperation and development. At the same time, emerging economies have demonstrated greater development potential and broader prospects for cooperation. This has brought new opportunities for SCO’s development. Second, the Treaty on Long-Term Good-Neighborliness, Friendship and Cooperation Between the SCO Member States, which has officially come into effect, has injected fresh impetus to member states’ efforts to elevate cooperation to a higher level, improve their capacity in meeting various threats and challenges, and speed up the building of a region of lasting peace and common prosperity. In this context, the upcoming summit will make plans and arrangements for SCO’s work at the next stage in line with the above-mentioned developments and changes.

I believe that to advance the development of the SCO, it is necessary to continue to carry forward the “Shanghai Spirit” that features mutual trust, mutual benefit, equality, consultation, respect for diverse civilizations and the pursuit of common development. It is important to ensure success in two areas: first, enhance self-development, improve capacity-building, and increase efficiency and level of cooperation; second, strengthen partnership network building, promote cooperation with observers and dialogue partners through concrete steps, and jointly work out regional development plans. Three tasks need to be fulfilled in real earnest, namely, maintaining security, developing the economy and improving people’s wellbeing as identified in the Strategic Plan for the Medium-Term Development of the SCO, to the benefit of people of member states.

At the summit, I will put forth China’s views and initiatives on the afore-mentioned matters and I look forward to hearing valuable opinions from colleagues. I am confident that with concerted efforts of all member states, the summit will produce expected results and open a new chapter in the development of the organisation.

Chinese President’s interview with the media from Central Asia was released by the China’s embassy in Islamabad.