‘China will­ing to work with oth­ers to op­pose trade pro­tec­tion­ism’

New Straits Times - - Business -

BADEN-BADEN, GER­MANY

FI­NANCE chiefs of the Group of 20 (G-20) na­tions re­newed their pledge to fi­nalise an over­haul of global bank-cap­i­tal rules, but stopped short of mak­ing progress on cer­tain pro­pos­als that have led to a stand­off be­tween Europe and the United States.

In the state­ment cap­ping a two-day meet­ing, here, the G-20 urged the Basel Com­mit­tee on Bank­ing Su­per­vi­sion to fi­nalise the Basel III re­forms “with­out fur­ther sig­nif­i­cantly in­creas­ing over­all cap­i­tal re­quire­ments”, stick­ing to pre­vi­ous lan­guage.

After the work al­ready missed a year-end dead­line, the doc­u­ment didn’t in­clude a new time frame. “Those who weighed in ex­pressed the will that th­ese ne­go­ti­a­tions re­sume swiftly and can be con­cluded,” said Bun­des­bank Pres­i­dent Jens Wei­d­mann.

Fur­ther progress on the sub­stance of the pro­pos­als was now in the hands of the Basel Com­mit­tee it­self, said Wei­d­mann.

Euro­pean reg­u­la­tors

Bloomberg BEI­JING: China op­poses var­i­ous forms of trade pro­tec­tion­ism and sup­ports free trade, said VicePremier Zhang Gaoli yes­ter­day, reaf­firm­ing Bei­jing’s stance amid wor­ries over weak global de­mand.

“China is will­ing to work with other coun­tries to op­pose var­i­ous forms of trade and in­vest­ment pro­tec­tion­ism,” said Zhang at the China De­vel­op­ment Fo­rum, here.

“We should un­wa­ver­ingly push for­ward eco­nomic glob­al­i­sa­tion, we can­not stop our foot­steps be­cause of tem­po­rary dif­fi­cul­ties.”

Zhang said world pol­i­cy­mak­ers should make glob­al­i­sa­tion process more “in­clu­sive” by put­ting more em­pha­sis on equal­ity.

“The world econ­omy is in a deep ad­just­ment, growth is weak and trade pro­tec­tion­ism ris­ing,” said Zhang.

Meanwhile, a se­nior min­is­ter said China’s pol­icy of re­strict­ing mar­ket ac­cess was im­por­tant for do­mes­tic growth, even as Pres­i­dent Xi Jin­ping sought to project the coun­try as a world leader in fight­ing pro­tec­tion­ism.

“In some ar­eas, we de­ter­mine that a cer­tain per­cent­age of the mar­ket share must be con­trolled by do­mes­tic play­ers, this is a last re­sort,” said Miao Wei, who heads China’s Min­istry of In­dus­try and In­for­ma­tion Tech­nol­ogy.

Other coun­tries had poli­cies re­strict­ing the im­port of some of China’s equip­ment and prod­ucts, while there was de­mand for those prod­ucts in China, said Miao.

“So we must re­solve this on our own, or else it would have a ma­jor im­pact on our growth.”

On an­other note, Peo­ple’s Bank of China (PBoC) gov­er­nor Zhou Xiaochuan said growth prospects had im­proved in the world’s sec­ond-largest econ­omy, but its mon­e­tary pol­icy re­mained pru­dent and neu­tral.

“China’s eco­nomic growth rate was sta­ble over­all, with growth prospects im­prov­ing.

“China will con­tinue to im­ple­ment ac­tive fis­cal pol­icy, and pru­dent and neu­tral mon­e­tary pol­icy,” he said, ac­cord­ing to a post on the PBoC web­site. Reuters

BLOOMBERG PIC

Bun­des­bank Pres­i­dent Jens Wei­d­mann. Peo­ple’s Bank of China gov­er­nor Zhou Xiaochuan says growth prospects have im­proved in the world’s No. 2 econ­omy, but its mon­e­tary pol­icy re­mains pru­dent and neu­tral.

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