A senior Chinese finance official called on the world on Saturday
to oppose the rising protectionism and promote progress in the Doha
Round.
Hu Xiaolian, deputy governor of the People's Bank of China, said
that all countries should make efforts to create a favorable
globalization environment, in which all countries may participate
on an equal and beneficial footing.
"With trade protectionism pressures growing, measures taken by
certain countries --under the pretext of righting global imbalances
-- will hinder the trade liberalization process," Hu said at the
spring meetings of the IMF and the World Bank.
"We call on all countries to harness the opportunities created
by globalization, pursue timely structural readjustments,
resolutely oppose protectionism, and promote progress in the Doha
Round," she said.
Hu, who attended the meetings on behalf of Zhou Xiaochuan, governor of China's central
bank, also welcomed the IMF's efforts to strengthen surveillance in
safeguarding global financial stability and promoting the economic
prosperity of its members.
"We have noted the efforts to strengthen Fund surveillance since
the Singapore Meetings, including through possible revision of the
1977 Decision on Surveillance over Exchange Rate Policies," she
said.
"In this regard, we wish to emphasize that, first, revision of
the Decision should not proceed too hastily," she said. "In making
adequate and careful analysis, the Fund must take the opinions of
all concerned parties into account and build broad consensus among
all member countries to ensure that it would benefit them all."
“Second, in strengthening surveillance, the Fund should be
realistic about, and not overestimate, the role of exchange rate,”
Hu said.
"Biased advice would damage the Fund's role in safeguarding
global economic and financial stability," she said, while
emphasizing that the focus of surveillance should be consistent
with the purposes laid out in the Fund's Articles of Agreement.
"Due respect should be paid to the fundamental role of
sustaining growth in promoting external stability. External
stability can only contribute to overall sustained stability when
anchored by domestic stability," she concluded.
Also Saturday, Hu said that China's economic growth model has
undergone welcome changes and its economy will continue on the path
of steady and fast growth.
"The Chinese economy is projected to remain on a fast growth
track -- exceeding 8 percent in real terms -- in 2007," she said,
adding that the government will give more emphasis to the quality
and sustainability of economic growth.
She also said the reform of the China's foreign exchange
regulatory framework has steadily deepened. "The RMB exchange rate
formation mechanism is being improved and flexibility of the RMB
exchange rate has increased significantly," she said.
(Xinhua News Agency April 15, 2007)