New Asian lender to start op­er­a­tions this year

China Daily (Canada) - - FRONT PAGE -

The AIIB will co­op­er­ate with ex­ist­ing in­ter­na­tional eco­nomic or­ga­ni­za­tions such as the In­ter­na­tion­alMone­tary Fund and the Asian Devel­op­ment Bank, and will not aspire to re­place any of them, said Zhu.

Fu Ying, a spokes­woman for the an­nual ses­sion of the coun­try’s top leg­is­la­ture, said on Wed­nes­day that the AIIB and Silk Road Fund are de­signed to bring China’s devel­op­ment fruits to its neigh­bor­ing coun­tries and re­gions by cre­at­ing a new­co­op­er­a­tion agree­ment in the area.

The “One Belt, One Road” ini­tia­tives, brought up by Pres­i­dent Xi Jin­ping last year, have the same aim, she said. The fu­ture ben­e­fit of the ini­tia­tives can be gauged from the Kun­ming-Bangkok Road, which was jointly con­structed by China, Laos and Thai­land.

China will adopt a proac­tive fis­cal pol­icy and a pru­dent mon­e­tary pol­icy this year also, but the fis­cal pol­icy will be more in­clined to be “proac­tive” based on fur­ther fine-tun­ing to pre­vent any un­ex­pected sharp slow­down, said Zhu.

The gov­ern­ment will curb the fast ex­pan­sion of lo­cal debt, and the bot­tom line is to avoid re­gional and sys­temic fi­nan­cial risks, he said.

This year the global econ­omy will face the most com­pli­cated and chal­leng­ing sit­u­a­tion since the 2008 global fi­nan­cial cri­sis, as the ma­jor economies have an­nounced con­trary mon­e­tary poli­cies and the oil price is de­clin­ing. Emerg­ing mar­kets will have more dif­fi­cul­ties in eco­nomic devel­op­ment than be­fore, said Zhu.

“China should pay more at­ten­tion to the on­go­ing changes and adopt proper so­lu­tions to avoid large risks. Sta­bi­liz­ing do­mes­tic growth and deep­en­ing re­forms is the best way to deal with ex­ter­nal un­cer­tain­ties.” The on­go­ing eco­nomic re­forms should also ad­dress is­sues aris­ing from the ear­lier stim­u­lus pack­age, he said.

“We ex­pect the US Fed­eral Re­serve may raise bench­mark in­ter­est rates in June. China and the US should keep close com­mu­ni­ca­tion on macro poli­cies based on the China-US eco­nomic dia­logue mech­a­nism. We will ad­just our poli­cies as and when re­quired,” Zhu said

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