Expert: China won't take more responsibility than it can handle

15:21, July 27, 2010      

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Since the outbreak of the global financial crisis, the Chinese government's response and its efforts to spur growth have produced sound effects, winning applause from all over the world. However, some developed countries claim that China should take responsibility for correcting global imbalances and saving the world economy.

"It is ridiculous to blame China for the global depression and weak recovery," said Huo Jianguo, head of the Ministry of Commerce's International Economic and Trade Research Institute.

West denies China's active role in recovery

In an exclusive interview with People's Daily, Huo said that the Western countries have a biased view of China.

"When China faces difficulties, they speak of 'the collapse of China.' When China makes solid achievements, they begin to talk about 'the threat of China,'" said Huo.

In addition to the yuan exchange rate issue, the developed economies have recently claimed that China should be responsible for its huge trade surplus as well as its position as a creditor nation, a big energy consumer and a major source of carbon emissions.

According to him, the Western media's exaggeration of China's responsibility was aimed at denying China's active role in stimulating global recovery and blaming China's growth for global imbalances and shortages of energy and resources.

Taking the yuan exchange rate issue as an example, Huo said that the developed countries wanted to whip up support from the emerging economies to put pressure on China and finally force China into passivity.

A responsible China is and has been working for global recovery

In the global multilateral frameworks, including the G20, China has shown its responsibility as a large economy.

As the world's largest importer, its imports dropped only 11 percent in 2009. During the same year, global goods trade turnover fell 23 percent, and imports to the United States dropped by 26 percent. In 2010, China's imports have maintained a sound growth, increasing 40 percent monthly.

During the 1997 Asian financial crisis, China kept the yuan stable, stood as a pillar in regional recovery and prevented the worldwide spread of the crash, contributing over one quarter of global economic growth.

Huo said that the direct cause for the crisis was the deregulation of the Wall Street financers and the speculation of financial derivatives and futures. Also the unfair global economic mechanism and the lack of global coordination are the fundamental reasons.

He also blamed the United States for its excessively loose monetary policy, which led to asset bubbles in the global capital market as well as imbalances.

In contrast, China's yuan remained stable because it was pegged to the dollar, and its early recovery stimulated the global rebound. In the post-crisis era, China resumed the reform of the yuan exchange rate regime in June 2010.

"China is shouldering its responsibility," said Huo Jianguo.

Noises won't impact China's stand

Huo stressed the possibility that 'China's responsibility' will become a lasting topic in the developed countries.

"Noises cannot push China to take the so-called responsibilities that are beyond China's capability or will harm China's core interests,"

China is stilling a developing country that sees massive barriers and threats to its development. With both the characteristics of a developing country and a global power, the world and China itself always make mistakes in positioning.

He suggested that China should, above all, be responsible to the Chinese people and the country's interests to maintain the sustainable growth of China's economy.

"This is China's largest contribution to the world. China will consider taking more responsibilities on this basis in order to strive for a fair and reasonable global economic system, a new development mode for mutual interests and a larger contribution to the world economy," he said.

Author: Gong Wen, People's Daily, July 27, 2010
Translator: Qi Shuwen


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