By Zhou Shixin

There are likely to be many expectations raised and hopes frustrated before and after the London G20 Summit on April 2. The most powerful countries in the world will discuss, negotiate, and bargain with each other over the redistribution of the world power and the resolution of the international economic crisis.

There are many differences of opinion among the participants, some of whom regard the summit as the turning point of a new world order as many developing countries take part in the summit and hold talks with the developed countries. They are all eager to find a way to tackle their problems and defend their positions during the conference.

The US, at the origin of the current international financial crisis, sees the summit as an opportunity to lead the world, extract the US from the financial doldrums, and maintain the US dollar as the most important international reserve currency so that the world will continue to bear the consequences of dollar inflation.

The EU too has suffered much during the international crisis, but is offering solutions that are unlikely to work. While the bigger members such as Germany and France tend towards protectionism in the EU and the world, some East European Countries are on the verge of bankruptcy. The process of EU integration will encounter enormous obstacles if the East European member states are abandoned by the West European developed countries.

With its huge foreign reserves, China is seen by many as having a key role in turning the situation around. The economic crisis hit China late and its effects were muted, and the country seems to be turning the corner quicker than others in the west. Some countries even expect China to lead the summit in putting an end to the dominant international role of the US currency - the President of the People's Bank of China, Zhou Xiaochuan has put forward a proposal for a supra-national world currency.

Indeed, there seem to be many incentives and opportunities for China to play a leading role in the summit – the country's model of economic development and reform has operated efficiently in protecting against the worst of the international crisis. There has been no major social upheaval in China, even while the unemployment levels have risen and the country is threatened by external interference over the Tibetan and Nansha Islands Issues.

However, China faces many dilemmas in London while work goes on with other countries to resolve the international economic crisis.

First, the key issue of domestic stability. China's most important problems come from internal matters. The government has a host of domestic problems to deal with, such as unemployment, or the imbalance in economic development between the west and east of China as well as between rural and urban areas. These internal challenges take precedence over international responsibilities. As a responsible country China always honors its commitments, which are weighed and calculated carefully beforehand, because the country cannot meet them if they exceed its ability to deliver.