Government and Policy

Chinese Premier: trade and currency wars harmful

(Xinhua)
Updated: 2010-03-22 22:39

BEIJING - Chinese Premier Wen Jiabao on Monday urged all countries and companies not to start trade and currency wars, which would be harmful to the recovery of world economy.

"We are happy that the world economy shows good signs of recovery, however, some factors make us feel that the recovery will not be so smooth," Wen told some 60 delegates at the two-day China Development Forum 2010.

He mentioned some of the factors, such as the high unemployment in some big economies, unstable prices of bulk products and inflation.

He added "all responsible countries and business people should refrain from starting trade and currency wars. That won't help us cope with difficulties, but just curb cooperation."

Chairman of the Morgan Stanley Asia Stephen Roach expressed that most delegates were worried about the emerging trade disputes and protectionism, in his question to the premier.

Wen said those who thought trade protectionism would help their economy recover, would find those measures counter-productive.

He stressed that China was not pursuing a trade surplus and wanted to enlarge the country's imports.

"To keep a balance of international payments is the goal we are working towards," Wen said.

He reiterated that China will change the way its external economy develops, and work hard to expand domestic demand.

The forum runs from Sunday to Monday and its theme is "China and the World Economy: Growth, Restructuring and Cooperation".