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As China makes preparations to host the Group of Twenty (G20) summit in 2016, the international community is wondering whether the world’s second largest economy can reenergize the G20, a key mechanism for global economic governance. With increasing stake in global economic well-being, China has developed a strong sense of commitment to the G20, and thus will put great efforts into making the mechanism more effective. However, both the Chinese and world economies are facing dual bottlenecks of efficiency and equality. How to tap new sources of growth, manage the fragmented regionalization, and create momentum for globalization will be the main challenges for the G20 next year and thereafter. What China should do is foster its leadership by better aligning its own reform and development strategy with the G20’s global agenda for a clearer vision of the global economic system. Priorities could include carrying out comprehensive structural reform, implementing infrastructure investment initiatives, upgrading global trade institutions, and drawing a road map for the implementation of the 2030 sustainable development agenda. To manage short-term market volatility in major economies, the adjustment of their monetary policies should also be given timely and sufficient attention.

The economic development of emerging countries such as China, India, Brazil, and Russia has serious implications for the multilateral trading system, and for government policies worldwide. This paper explores globalization and regionalization processes in order to assess the effects of trade liberalization on emerging countries. Today, major economic players tend to focus on bilateral and regional agreements. Attention must be paid to how these agreements affect the multilateral trading system and the trilateral world economy. One aspect that stands out from this study is that the role of countries such as China and India, which are reshaping trade patterns, remains to be defined within the Asian regional framework. Equity issues also have an important role to play, both at a regional and at a global level. Consideration of the intersections between the regional and/or bilateral trade agreements of member countries raises interesting questions about the role of trade blocs in the future trajectory of the global economy.