BIZCHINA / Center

    Minister: global imbalances a concern
    (Reuters)
    Updated: 2006-05-05 09:03

    China's Vice Finance Minister Li Yong said on Thursday he was quite concerned about global imbalances and developed countries should take more responsibility in correcting them.


    Chinese vice minister of finance Li Yong (L), Japanese Finance Minister Sadakazu Tanigaki (C) and ADB President Haruhiko Kuroda (R) attend a seminar at the Asian Development Bank (ADB) annual meeting in the southern Indian city of Hyderabad May 4, 2006. [Reuters]

    Li told a seminar at the annual Asian Development Bank meeting in Hyderbad, southern India, that China could not move too fast with its exchange rate reform, but it was making efforts to boost domestic demand to help rebalance the economy.

    "I believe we should share the responsibility. We are all on the same boat and no one can escape if this boat sinks," he said.

    "Major developed countries should take more responsibility. We need consultations rather than trade protectionism and we should not politicise trade imbalances."

    China's long-term goal, he said, was to balance its imports and exports.

    China's move last year to allow the yuan to strengthen by a limited amount against the dollar and adopt a managed float "reflected our willingness to further reform the exchange rate regime," Li said.

    The government was also trying to boost domestic consumption to help cut its reliance on investment and exports, he said.


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