UK-China Economic and Financial Dialogue II Policy Outcomes
08:26, May 12, 2009
|The Second China-UK Economic and Financial Dialogue was held on May 11. After the dialogue, the two sides released a communique to introduce policy outcomes. The full text of the communique is as the following:
Session I: Supporting Economic Growth and Welfare
1. We agreed the importance of safeguarding development in low income countries during the economic slowdown. We reaffirmed our commitment to meeting the Millennium Development Goals. China appreciates UK's commitment to achieve the 0.7 percent ODA/GNI target at an earlier date. China and UK will make every effort to contribute to achievement of the UN Millennium Development Goals through their respective channels. We also confirmed our support for a substantial increase in lending of at least 100 billion U.S. dollars by the Multilateral Development Banks (MDBs), including to low-income countries, and will work to ensure that all MDBs have the appropriate capital.
2. We agreed that a crucial element of the global response is the role played by the international financial institutions. Following agreements reached at the London Summit, we reaffirmed our commitment to providing additional resources to the IMF. We also reiterated our commitment to reform the IMF. We agreed that the IMF's governance structure must reflect changing weights in the world economy. We urge IMF and the World Bank to expedite governance structure reform, work out explicit timetable and roadmap, so as to complete the next review of quotas of IMF by January 2011 and agree on voice and representation reform of the World Bank by the 2010 Spring Meetings.
3. UK will consult and exchange views with China on the Department for International Development's policies on development.
4. As part of the UK's G20 Chair year, China and the South Africans will co-host the Financing for Development workshop under the G20 Finance Ministers and Central Bank Governors Meeting.
5. UK and China agree to jointly draft a new MoU between the UK Department for Work and Pensions and the Chinese Ministry of Human Resources and Social Security.
Session II: Financial Stability and Capital Market Development
6. UK and China re-iterate their commitment to continue to take actions to reform the regulation of the financial sector as agreed in the London Summit communiqu, in line with the principles of strengthening transparency and accountability, enhancing sound regulation, promoting integrity in financial markets and reinforcing international cooperation.
7. UK and China agree to build on current regulatory exchange and cooperation between their respective financial regulatory authorities (FSA, CBRC, CSRC and CIRC), including discussions between relevant parties on steps following China's accession to the Financial Stability Board and the Basel Committee on Banking Supervision.
8. FSA and CIRC have exchanged letters on mutual cooperation.
9. Both sides will continue to support qualified Chinese companies to list on the London Stock Exchange through various listing routes, and work together swiftly to progress this.
10. China and UK agree to expand financial sector technical collaboration and exchange programme agreed by Vice-Premier Wang and Chancellor at the First EFD, specially to focus on:
-- Financial stability issues, including international financial sector standards;
-- Capital market development covering equities and bond markets, product innovation and risk management;
-- SME financing;
-- Investor education;
-- Insurance and private pensions;
-- Asset management
-- Collaboration opportunities between the relevant parties of China and the UK-based International Centre for Financial Regulation.
11. China agrees to allow qualified foreign companies, including UK companies to list on its stock exchange through issuing shares or depository receipts in accordance with relevant prudential regulations;
Session III: Supporting Green Growth through Bilateral Energy and Environment Cooperation
12. China and the UK commit to deepen cooperation on sustainable cities, as agreed under the Sustainable Cities Initiative MoU, through the pilots in Wuhan and Chongqing;
13. China and UK agree to conduct exchanges and cooperation on nuclear energy and offshore wind power development and cooperation on nuclear energy and offshore wind power development and construction, on implementing a quota system on renewable energy and on improving industrial polices and management mechanism of renewable energy.
14. UK and China agree to share experiences on the role of economics ministries and other agencies in promoting green growth.
Session IV: Trade and Investment
15. We agree to follow up our commitment to support trade finance at the London Summit, and strongly support the IFC to establish the Global Trade Liquidity 1 of the initiative. China has purchased 1.5 billion U.S. dollars placement bonds to support the trade finance programme of the IFC.
16. We agree to work together to expand our bilateral trade in particular in aerospace, environmental protection, biological technology, pharmaceuticals elections and advanced engineering.
17. UK reaffirms its support for China's market economy status at as early a date as possible and will continue to play a constructive role to encourage EU recognition;
18. We are in full agreement on the advantages of maintaining free trade and the multi-lateral trading system. We must remain committed to the principles set out at the London Summit. Summit to rejection all forms of protectionism, underpin prosperity and refrain from erecting new barriers to investment or trade. Both sides commit to continuing close cooperation, locking in of the consensus and outcomes achieved so far in the Doha round negotiations, to achieve a comprehensive and balanced conclusion of the negotiation at an early date. This world send a good signal of how the international community can work together to boost global prosperity and meet our development goals.
19. Both sides recognize the constructive role and sovereign wealth funds can play in stabilizing the world economy, and boosting global demand, the UK from sovereign Wealth Funds.
20. China and the UK agree to take advantage of the Joint Economic and Trade Commission to explore effective ways to achieve the bilateral trade target and to enrich EFD Outcomes.
21. China and UK will actively implement the MoU on strengthening trade and investment cooperation in Chinese regional cities between the Ministry of Commerce of China and the Department of Business Enterprise and Regulatory Reform and the China-Britain Business Council of the UK, including in the mid-west of and the northeast of China, so as to enhance the trade and investment cooperation between the two countries.
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