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Rich nations urged to abandon protectionism
(Xinhua)
Updated: 2005-09-25 07:54

Governor of the People's Bank of China Zhou Xiaochuan said on Saturday that the major industrial countries should abandon the outdated mentality and behavior of trade protectionism.

Speaking at the twelfth meeting of the International Monetary and Financial Committee, the policy-making body of the International Monetary Fund (IMF), Zhou pointed out that protectionist sentiments are mounting in some industrial countries because of concerns over the competitive pressures arising from emerging markets and some countries have even in appropriately politicized economic issues.

"Such behavior not only harms the global economy, of which these countries are members, but also undermines the principle of fair competition and the spirit of amicable cooperation that the international community has been working so hard to promote," he said.

He called on the rich countries to abandon the protectionism and strengthen cooperation and dialogue, and seek mutual benefits and win-win scenarios in the world trade.

The Chinese central bank governor also said that the Chinese government autonomously instituted a reform of the Renminbi exchange-rate regime by moving into a managed floating exchange rate based on market supply and demand with reference to a basket of currencies in July.

"This reform meets the practical needs of Chinese economic and social development and has profound significance for maintaining macroeconomic and financial market stability," he said.

He also called on the developed countries to hasten their efforts to meet the UN-proposed goal of increasing government development aid to 0.7 percent of their gross national income.

Zhou Xiaochuan pledged that the Chinese government will do its best to support and assist other developing countries, especially those in Africa, in accelerating their development by means of tariff reduction, debt relief, preferential loans and other assistance.



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