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should abandon the outdated mentality and behavior of trade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.
(Xinhua News Agency September 25, 2005)