Economy

Beijing: US needs good fiscal policy

By Chen Guangjin and He Wei (China Daily)
Updated: 2010-11-09 09:27

Beijing calls for responsibility before summits

BEIJING - China urged the United States on Monday to take a responsible attitude toward its macroeconomic policy for a stable global capital market ahead of President Hu Jintao's upcoming visit to two important economic forums.

Vice-Finance Minister Zhu Guangyao made the remarks at a briefing on Hu's participation in the Group of 20 (G20) Summit in the Republic of Korea (ROK) on Nov 11 and 12 and the 18th Asia-Pacific Economic Cooperation (APEC) Summit in Japan from Nov 13 through 14.

Hu will attend the summits respectively at the invitation of ROK President Lee Myung-bak and Japanese Prime Minister Naoto Kan, said Liu Zhenming, the assistant foreign minister.

On the sidelines of the meetings, Hu will meet with APEC Business Advisory Council members and hold bilateral talks with Lee.

As for a speculated meeting between Hu and Kan, "there are no plans for a bilateral visit", when Hu is in Japan, said Liu.

"As to whether there is a chance of a bilateral meeting (during APEC), I do not have the agenda yet," added Liu when answering a Japanese reporter's question.

By addressing the theme of "Emerging market countries in Asia-Pacific" during the APEC meetings, Hu will introduce China's position on an inclusive and balanced economic growth pattern and unremitting efforts to promote regional free trade zones.

The two important economic forums will focus on the changes needed to tackle the financial crisis and how they should be implemented, as well as discussing further integration of the regional economy and removal of trade barriers.

World leaders including Hu and US President Barack Obama will also sign a pact on what will be presented as a comprehensive framework to address global economic imbalances.

But the meetings will also come amid reported sharp divisions on currency and trade issues - notably the US Federal Reserve Board's recent move to issue $60 billion for restoring a foundering US economy.

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Zhu said China upholds global economic growth within a strong, sustainable and balanced framework - a consensus reaffirmed by major economies at the G20 Toronto Summit in June.

Therefore, "China has the concern and will raise the query of the US recent quantitative easing money policy", Zhu said, adding that Beijing is expecting to exchange candid views on the issue with Washington during the multilateral mechanisms.

"We hope the US can realize its responsibility and duty on the revival of the global economy," Zhu said.

Analysts said the currency issue will be a hot topic among the leaders attending the G20 summit, but added there is unlikely to be a harshly worded final document.

"They are well aware that the currency issue is not an easy problem to solve - at least for now," said Chen Fengying, head of the World Economy Institute at the China Institutes of Contemporary International Relations.

Chen said the upcoming G20 summit should focus on how to develop the world economy stably and continuously in the post-crisis era, rather than falling into unfair competition.

Chen also noted that the APEC is to be revitalized with the US and Japan's pursuit of influence in this region, where the rapid economic growth in some Asian nations offer many opportunities.

Zhu also said China welcomes the recent proposal of share reform by the International Monetary Fund (IMF) and hopes for its early approval.

The proposal, if approved, will make China the third-largest stakeholder in the IMF, after only the United States (17.41 percent) and Japan (6.46 percent).

China is currently the sixth-largest.