（September 5, 2016）

Dear colleagues,

Now we are starting the third session to discuss the topic of robust international trade and investment.

International trade and investment are major drivers of global economic growth. However, international trade has been growing at a rate below 3 percent foryears, lower than the world's average economic growth rate. Currently, protectionism is rising and trade financing costs remain high. The multilateral trading regime is at a crossroads, and regional trade arrangements are promoting regional trade cooperation while increasing fragmentation of global trade governance mechanisms. Developing countries are struggling at the lower end of global value chains. Meanwhile, on the plus side, cross-border e-commerce is thriving, trade in services is growing, and new areas, elements and opportunities are constantly being thrown up.

Global investment is also undergoing a period of great change. Many bilateral investment agreements are currently in progress; they serve to liberalize and facilitate international trade and investment, yet this can lead to a fragmentation in investment regulatory systems that overwhelms investors. Investment benefits for developing countries and the least developed countries (LDCs) are low. These issues deserve attention from all parties.

These phenomena reflect a lack of the confidence and an increase in inward-looking trade policies against the new backdrop of a sluggish world economy. When speaking of the impact of economic globalization, in the past few years we tended to say “The world is flat.” Now we must be alert to the possibility of the world becoming divided again by all types of barriers.

In the current circumstances, we should firmly oppose protectionism, and solidify the status of the multilateral trading regime as the core. More importantly, we must identify and support positive trends, and explore new space for the development of trade and investment.

This year China has listed the topic of robust international trade and investment high on the agenda of the Hangzhou Summit. Through the efforts of sherpas and trade ministers, G20 members have reached consensus on such key issues as strengthening trade and investment mechanisms, promoting global trade growth, upholding the multilateral trading regime, advancing the development of the global value chains, and enhancing international cooperation in investment policies. Our consensus has laid a solid foundation for this meeting.

Our efforts will play a large part in determining whether the world will become more open or more closed, flatter or more divided. I am convinced that this year's Summit will yield results conducive to the development of global trade and investment and the building of an open global economy. I would also like to hear your opinions.