Chinese Finance Minister Jin Renqing on Saturday delivered a
speech to his G7 counterparts and bank chiefs, focusing on world
economic situation and the global economic imbalance.
In his speech at the discussion, Jin briefed the participants on
the current economic situation in China and its major features.
Governor of the People's Bank of China Zhou Xiaochuan also attended
the meeting.
Jin stressed that China will continuously implement
macro-adjustment policies, stimulate domestic demand and conduct
financial structure reforms, adding that his country will work
together with others to promote the orderly adjustment of the
global economic imbalance.
In their discussion, the ministers and bank chiefs urged major
economies to strengthen policy dialogues to reduce the risks of
world economy and financial markets, according to the Chinese
delegation.
On Friday, Jin and finance ministers from India, Brazil, South
Africa, Russia and Mexico discussed the development of bond markets
in emerging economies and trade issues.
The ministers urged the resumption of the Doha round of trade
negotiations, which are very important for rebuilding multilateral
trade system, the stable development of world economy and poverty
reduction.
Jin told his counterparts from the five nations that developing
bond markets in the emerging economies will help build their
domestic capital markets and adjusting the global economic
imbalance.
However, he noted that setting up bond markets is a gradual
process, calling on the industrialized nations to provide technical
aid to the emerging economies and help them improve their
institutional capability.
The developed countries should also implement responsible
macro-policy and work with the International Monetary Fund (IMF)
and other international monetary institutions to monitor the
short-term speculative capital to ensure international financial
stability, creating a good environment for the emerging economies,
Jin said.
Speaking of the Doha Round trade talks, Jin urged the developed
economies to realize the special treatment for the developing
economies, stressing that this round is for development.
Finance ministers and central bank chiefs from the Group of
Seven industrialized nations on Friday opened the two-day meeting,
which will focus on the development of capital markets in emerging
market economies and other world economic issues and fiscal policy,
including consolidating macroeconomic stability, and the role of
hedge funds in the stability of international financial
markets.
The Doha Round of trade talks, which began in 2001 and reached
an impasse over disputes on farm subsidies, is one important topic
to be discussed at the meeting.
Jin attended the meeting as a guest. Russia, despite its
membership in the Group of Eight, remains to be a guest at the
meeting because G-7 members believe Russia's economic and financial
system does not fit with theirs.
The ministers from G-7, which comprises the United States,
Britain, Canada, France, Germany, Italy and Japan, met with their
counterparts from five developing nations -- China, Mexico, South
Africa, India and Brazil.
The finance chiefs discussed setting up bond markets in the
developing economies using their domestic currencies to try to
avoid financial crisis.
They also talked about the promotion of growth and the fight
against poverty by effecting improvements in the public finance
sectors of developing countries, and fiscal policy for the
promotion of energy efficiency and of an energy strategy
increasingly reliant on renewable energies.
The meeting in Essen is one of several meetings that will lead
to the G-8 summit in the German Baltic Sea resort of
Heiligendamm.
(Xinhua News Agency February 11, 2007)
