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Past realities teach us that merely relying on fiscal and monetary policies does not work for the world economy, Xi said, adding that the world should pursue innovation-driven economy and create a new round of growth and prosperity.

On Sunday evening, Chinese President Xi Jinping hosted a grand banquet for those attending the 11th G20 summit in Hangzhou.

"That is a road we cannot afford to go down. It would be a mistake of historic proportions for the G20 to stand by while scare campaigns not based on facts or evidence fostered protectionism or, indeed, isolationism," he said.

Several provinces in China have been hit by floods and landslides triggered by heavy rainfall. Torrential rain and floods left 130 people dead and 110 others missing in north China's Hebei Province, while about 250,000 people were still trapped by flood in Tianmen of central China's Hubei Province.

"It was a cold, chilly day, with snow everywhere, but the memory of it burns even today," Tang Rongbin, a 72-year-old farmer from the village of Luotuozhuang in Fuping, recalled.