Special Report: Boao Forum For Asia
2009
BEIJING, April 19 -- Premier Wen Jiabao said
on Saturday that the economic polices of countries which issue global reserve
currencies require closer supervision as part of building a diversified
international monetary system.
Wen and central bank governor Zhou Xiaochuan also cautioned against jumping
to the conclusion that China is already on the path to economic recovery, after
data issued on Thursday showed signs of an upturn in momentum.
Chinese Premier Wen Jiabao gives a
keynote speech at the opening plenary of Boao Forum for Asia (BFA) Annual
Conference 2009 in Boao, a scenic town in south China¡¯s Hainan Province,
April 18, 2009. The BFA Annual Conference 2009 opened here on Saturday
with the theme of ¡°Asia: Managing Beyond Crisis¡±. (Xinhua/Ma
Zhancheng)
Photo
Gallery
Wen's currency comments, an apparent reference to U.S. economic management that
Beijing has blamed in part for the global financial crisis, were twinned with a
pledge to promote more international use of the Chinese yuan.
Wen has expressed concern in recent months about the
safety of Chinese investments in U.S. dollar assets.
"We should strengthen the supervision of the economic policies of the main
reserve currency economies and push forward the establishment of a diversified
international monetary system," he said in his opening address to the Boao Forum
for Asia, held annually in the Chinese island province of Hainan.
It was the second time this month that China has made such an appeal,
following President Hu Jintao's call at the London G20 summit earlier this month
for the International Monetary Fund to strengthen its oversight of reserve
currency-issuing economies.
Long-term Solutions
China caused a stir in March when central bank chief Zhou suggested the
idea of reducing reliance on the U.S. dollar as the world's primary unit of
foreign exchange by developing the Special Drawing Rights (SDRs) issued by the
IMF.
But at the London G20 forum, China did not call for immediate discussion of
the subject.
Speaking at the Boao forum on Saturday, Zhou said that his proposal on SDRs
was intended mainly to contribute his thoughts on the root cause of the
financial crisis and what needed to be done in the long run to prevent such
situations in the future.
He was not suggesting that drastic changes to the financial system needed
to be taken in the short term, Zhou said.
"It's just like treating a patient. First we need to make a diagnosis. Then
comes treatment," Zhou told the forum.
"But right now, not all the doctors have the same diagnosis....
Unfortunately, it seems that there is still no consensus among various countries
about the source of the financial crisis," he said.
Premier Wen said China would look at expanding its currency swap agreements
that are seen as a step toward eventually *** the yuan more of a global
reserve asset.
"We should give full play to bilateral currency swap agreements and will
study expanding currency swaps in scale and to more countries," he said.
China's central bank has signed six swap deals since mid-December, totalling 650 billion yuan ($95 billion), with countries from Argentina to Indonesia.
Leaders take a family photo before the
opening plenary of Boao Forum for Asia (BFA) Annual Conference 2009 in
Boao, a scenic town in south China¡¯s Hainan Province, April 18,
2009.(Xinhua Photo)
Photo Gallery
Strong China
Wen highlighted China's relative strength in the face of the global
financial crisis and told the audience of Asian government and business leaders
that Beijing stood ready to support other countries through the difficult times.
"A series of economic stimulus measures adopted by China have shown initial
results and there have been positive changes in economic performance, which has
been better than expected," he said.
His wording was nearly identical to that at a State Council, or cabinet,
meeting this week after China said its economy grew at 6.1 percent in the first
quarter from a year earlier.
While that was the weakest quarter in year-on-year terms since records
began in 1992, analysts said it represented a rebound in quarter-on-quarter
growth.
But Wen also said that China would still err on the side of the caution,
sticking to its active fiscal policy and moderately loose monetary policy --
which, in practice, have meant a surge in government spending and bank lending.
"We would rather over-estimate the severity of the situation and fully
consider difficulties in *** longer-term preparation for bigger
difficulties," he said.
Central bank governor Zhou also emphasised that, even though there were
positive signs that the economy is starting to recover, China is still in the
stage of struggling against the global economic slowdown and financial crisis.
"The situation of the crisis is changing constantly. We need to tweak our
policies in line with the changing stage of the crisis," he said.
Liu Mingkang, chairman of the China Banking Regulatory Commission, added at
Boao that he was cautiously optimistic about the economic outlook and thought
banks had adequate provisions to cover any potential rebound in bad loans.
Zheng Xinli, a senior Communist Party adviser, told reporters in Boao that
he thought the economy had already hit bottom and would start to pick up steam
in the second quarter.
But asked if the government would be able to hit the 8-percent GDP growth
target for the year, Zheng said: "I think it is not guaranteed."
(Source: China Daily)
Premier: China's stimulus package plan
paying off
BOAO, Hainan, April 18
(Xinhua) -- China's economic stimulus package plan is already paying off, and
positive changes have taken place in the economy, Chinese Premier Wen Jiabao
said Saturday.
"The situation is better than expected," Wen said at the
opening ceremony of the Boao Forum for Asia annual conference 2009. Full story
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