Minister tells G7 China does its part
China has been contributing to improving the world economy and will continue to do so by stimulating domestic demand, Finance Minister Jin Renqing said at a meeting of the seven industrialized nations (G7).
While the nation seeks to do its part, industrialized countries should assist developing economies to build capacity, while strengthening control on international speculative funds, he said.
Key developing economies China, India, Brazil, South Africa, Russia and Mexico were also invited to the conference, held on Friday and Saturday in the Germany city of Essen.
Jin said China has been taking measures to rectify its economy’s reliance on investment and exports. The measures included reforming income distribution, improving the social safety net and accelerating development in rural areas.
Officials from the 13 countries focused on bond market development in emerging market economies during a dialogue session between developed and developing countries. They agreed that growth in the global economy and ample liquidity have created a favorable environment for bond market development.
Chinese policy makers said that the bond market should become a more important venue to raise capital to reduce Chinese enterprises “unhealthy over-dependence” on banks.
However, Jin said that the development of bond markets must undertaken gradually according to each country’s economy.
China’s central bank chief Zhou Xiaochan, who also attended the meeting, told reporters that he was satisfied with the evolution of the country’s exchange rate system.
China has been following its plan to increase the renminbi’s exchange rate flexibility, Zhou said. He added that seasonal factors may explain a recent rise in consumer prices.