China to G20 Leaders: World Economy at Risk, Promote Open Trade

"The global economy is being threatened by rising protectionism and risks from highly leveraged financial markets," Chinese President Xi Jinping said at the opening of the  two-day G20 summit Reuters reported.

"Growth drivers from the previous round of technological progress are gradually fading, while a new round of technological and industrial revolution has yet to gain momentum," he further said.

His foreboding warnings on Sunday followed after conducting "extremely productive "bilateral talks with US President Barack Obama, though neither leader broached the thornier topic of the South China Sea claims of Beijing

According to Xi the global economy is at a critical crossroads in human history amid a background of sluggish global demand, volatile financial markets and feeble trade and investment.

Japanese Deputy Chief Cabinet Secretary Koichi Hagiuda said that the G20 countries are planning to agree in a communique at the summit's end on policy measures in the areas of monetary, fiscal and structural reforms to ensure solid and sustainable economic growth.

"Commitment will be made to utilizing all three policy tools of monetary and fiscal policies and structural reforms to achieve solid, sustainable, balanced and inclusive growth," Hagiuda told reporters on the sidelines of the summit.

Xi also called on G20 countries to match their words with actions boldly saying: "We should turn the G20 group into an action team, instead of a talk shop."

However, some of the G20 leaders have already drawn lines in the sand  over issues ranging from trade and investment to tax policy and industrial overcapacity.

For instance,  Xi held talks with Australian Prime Minister Malcolm Turnbull and said that him he hoped Australia would continue providing a fair, transparent and predictable policy environment for foreign investors especially the Chinese. A month ago China was angered when Australia blocked the $7.7 billion sale of the country's biggest energy grid to Chinese bidders. China has accused Australia of protectionism

Beijing has also criticized Australia, a longtime U.S. ally, for running surveillance flights over disputed islands in the South China Sea.

In another case, European Commission President Jean-Claude Juncker said China must draw up policies and procedures to address industrial overcapacity, complaining that it was "unacceptable" that the European steel industry had lost so many jobs in recent years to China.

"Overcapacity is a global problem but there is a particular Chinese element," he told a news conference.

Britain's future after its departure from the European Union was also a point of great discussion.

Obama reassured newly elected Prime Minister May that Britain's closest political, commercial and military ally would remain steadfast and stand by her.

However, Obama reiterated to PM May that Brexit was a mistake and that London could not jump the queue to arrange a bilateral trade deal, a point Obama made soon after Brexit took place.

Juncker echoed the same sentiments saying that if Britain wanted access to the European Union's common market, it needed to abide by the rules of the common market.

Turnbull, meanwhile, said Australia wanted an early free trade agreement with Britain so markets could remain open between them when Britain formally left the European trading bloc.