Chen tells US to control debt
By Feng Jianmin |
August 13, 2011, Saturday
|
Print Edition
Print Edition
MINISTER of Commerce Chen Deming yesterday urged the United States and Europe to control their debts, and called for more cooperation between China and southeast Asian countries amid an uncertain economic outlook.
China is worried about excessive liquidity from stimulus plans launched during the financial crisis, and vowed to maintain energy and commodity prices together with other countries, Chen said at a meeting of southeast Asian trade ministers in Manado, Indonesia.
"We support stabilizing measures taken by relevant countries, but we hope these countries will take measures to control their government debt proportion and take bigger responsibilities," Chen said. "We are also concerned about new challenges facing European countries in August and September."
Chen also called on governments in the US and Europe, China's top two trading partners, to act responsibly and get their fiscal houses in order.
Chen's comments echoed a report issued yesterday by the Chinese central bank, saying the US faces "debt sustainability" risks in the medium and long term.
"Developed countries' debt problems are worrisome" and may cripple a longer-term global recovery, the People's Bank of China said in a quarterly monetary policy report on its website. In addition, the eurozone's debt woes may spread to "key nations," it said.
Earlier this month, other Chinese senior government officials, such as central bank Governor Zhou Xiaochuan and Foreign Minister Yang Jiechi, said the US should take more responsibility to head off a global recession. Uncertainty in the US treasuries market would undermine the international monetary system and hamper global growth, they said.
A total of 780 billion yuan (US$122 billion) has been wiped off from the stock markets on the Chinese mainland this month, according to data from Shanghai and Shenzhen bourses.
About US$4 trillion has evaporated from the world's stock markets during the same period on concerns over a worsening debt crisis in Europe and a downgrade of the US government's credit rating, according to a Reuters report.
"China and southeast Asian countries should further improve their economic and trading cooperation while protecting the stability and development of the regional economy to face the growing uncertainties shaking international financial markets," Chen said.
The southeast Asian countries are the third-largest trading partner of China next to Europe and the US.
China is worried about excessive liquidity from stimulus plans launched during the financial crisis, and vowed to maintain energy and commodity prices together with other countries, Chen said at a meeting of southeast Asian trade ministers in Manado, Indonesia.
"We support stabilizing measures taken by relevant countries, but we hope these countries will take measures to control their government debt proportion and take bigger responsibilities," Chen said. "We are also concerned about new challenges facing European countries in August and September."
Chen also called on governments in the US and Europe, China's top two trading partners, to act responsibly and get their fiscal houses in order.
Chen's comments echoed a report issued yesterday by the Chinese central bank, saying the US faces "debt sustainability" risks in the medium and long term.
"Developed countries' debt problems are worrisome" and may cripple a longer-term global recovery, the People's Bank of China said in a quarterly monetary policy report on its website. In addition, the eurozone's debt woes may spread to "key nations," it said.
Earlier this month, other Chinese senior government officials, such as central bank Governor Zhou Xiaochuan and Foreign Minister Yang Jiechi, said the US should take more responsibility to head off a global recession. Uncertainty in the US treasuries market would undermine the international monetary system and hamper global growth, they said.
A total of 780 billion yuan (US$122 billion) has been wiped off from the stock markets on the Chinese mainland this month, according to data from Shanghai and Shenzhen bourses.
About US$4 trillion has evaporated from the world's stock markets during the same period on concerns over a worsening debt crisis in Europe and a downgrade of the US government's credit rating, according to a Reuters report.
"China and southeast Asian countries should further improve their economic and trading cooperation while protecting the stability and development of the regional economy to face the growing uncertainties shaking international financial markets," Chen said.
The southeast Asian countries are the third-largest trading partner of China next to Europe and the US.
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