Thursday, December 4, 2008

The Tables Turn: China Lectures U.S. On Economy

At a high-level summit in Beijing called the Strategic Economic Dialogue, Wang Qishan, a vice premier and leader of the Chinese delegation at the two-day talks, called on the US to take swift action to address the current financial crisis and said the two countries needed to work together. “We hope the US side will take the necessary measures to stabilise the economy and financial markets as well as guarantee the safety of China’s assets and investments in the US,” Wang said.

China, which has nearly $2 tillion of foreign exchange reserves, last month overtook Japan to become the largest foreign holder of US government debt,

Zhou Xiaochuan, governor of the Chinese central bank, urged the US to rebalance its economy. “Over-consumption and a high reliance on credit is the cause of the US financial crisis,” Mr Zhou said. “As the largest and most important economy in the world, the US should take the initiative to adjust its policies, raise its savings ratio appropriately and reduce its trade and fiscal deficits.”

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