China and India signed in Beijing on Tuesday a joint statement
that pledges to expand financial cooperation between the world's
two largest developing countries.
In the statement signed at the second China-India Financial
Dialogue in Beijing, the two countries vowed to boost exchanges and
cooperation on bond markets development, capital markets opening
and financial supervision.
Both sides agreed to develop bond markets and expand channels
for direct financing, gradually open domestic capital markets and
boost financial supervision to guard against risks brought about by
short-term cross-border capital flows.
The two countries also pledged to improve macro-economic
controls, promote renewable and clean energy development and usher
in more sustainable resources-saving and environment-friendly
production and consumption models.
Li Yong, Chinese Vice Minister of Finance, and Indian Financial
Secretary Dr. D. Subbrarao co-chaired the meeting.
Li acknowledged that China and India face similar challenges
brought about by fast economic growth.
The statement says that both sides have realized that the
spreading subprime crisis, high oil and commodity prices, global
economic imbalance and rising trade protectionism pose potential
threats to global economic growth.
The robust economic growth in China and India will help the
globe better guard against economic recession, according to the
statement.
Subbrarao told Xinhua that the two neighbors at home face common
tasks to prevent inflation, manage capital flows, save energy and
realize sustainable growth.
By drawing on each other's development experiences, the two
countries can deal with the challenges and play their role in
maintaining a steady world economic growth, Subbrarao added.
Rodrigo de Rato, head of the International Monetary Fund
(IMF),said at the IMF annual meeting recently that though the world
economy has slowed down its pace in the short term, the performance
of rising economies including China and India is encouraging.
"The financial cooperation between China and India will not only
help them realize sustainable development, but also help stabilize
the Asian financial market," Sun Shihai, deputy director of the
Institute of Asia-pacific Studies of the Chinese Academy ofSocial
Sciences, told Xinhua.
The China-India Financial Dialogue mechanism was established
based on a Memorandum of Understanding on Financial Dialogue signed
between the two countries during Chinese Premier Wen Jiabao's visit
to India in April 2005.
The third China-India Financial Dialogue will be held late
2008or in the first half of 2009 in India, according to the
statement.
The Chinese Ministry of Finance said the dialogue will be held
once every 12 to 18 months at a deputy ministerial level or other
levels the two sides agree upon.
The first such dialogue was held in New Delhi, capital of India,
on April 7, 2006.
(Xinhua News Agency December 5, 2007)
