Economy

Hu: cautious on stimulus exits

(Xinhua)
Updated: 2010-06-28 09:32
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He called for well managing the G20's relationship with other international organizations and multilateral mechanisms and ensuring that the G20 "plays a core role in promoting international economic cooperation and global economic governance."

Secondly, the Chinese leader said "we need to accelerate the establishment of a new international financial order that is fair, equitable, inclusive and well-managed."

"We must learn the hard lessens of the international financial crisis, take effective measures to address the root causes of the crisis and push forward reform to ensure that the future international financial supervisory and regulatory regime is easy to operate and highly accountable," he said.

He called for the establishment of an international financial system "that is good for the growth of the real economy."

Hu said the G20 members need to bring the shadow banking system under supervision and regulation and formulate globally consistent accounting rules.

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The regulation of credit rating agencies should be enhanced, he said, adding that "it is particularly important to establish objective, fair, reasonable and uniform methodologies and standards for sovereign credit rating so that the rating results can accurately reflect the state of a country's economy and credit worthiness."

He also said the G20 nations need to enhance the IMF's capacity building and surveillance reform, and strengthen supervision over macroeconomic policies of various parties, particularly major reserve currency issuing economies.

Thirdly, the Chinese leader urges advancing "the building of an open and free global trading regime."

"We must take concrete actions to reject all forms of protectionism and unequivocally advocate and support free trade," he said.

Calling for renewing commitment not to impose new restrictions on goods, investment and services, he said the developed countries should promote international trade "with greater openness."

"It is important to address trade frictions appropriately through dialogue and consultation and under the principle of mutual benefit and common development," he stressed.

The Chinese president called on G20 countries to work for comprehensive and balanced outcomes from the Doha round trade negotiations and attain the goals of this development round at an early date.

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