China sees global economic turning point
The global economy has emerged from the severe downturn that has thrown some countries into recession, and has begun to recover, according to Chinese Vice-Premier Wang Qishan.
“The world economy is at a critical moment moving out of the crisis and into recovery,” he said.
Despite being optimistic about the future, China’s Assistant Finance Minister Zhu Guangyao has expressed concerns about the ailing US dollar, adding that China hoped to see a stable US economy and a stable US dollar as a global reserve currency.
“Of course, we are concerned about the safety of US dollar assets,” said Zhu. China holds a significant amount of US dollar reserves, which could lose value if the US does not recover its fiscal health.
Zhu refrained from mentioning anything concrete about recent yuan-led trade, although it is expected to arise in following meetings.
US Treasury Secretary Timothy Geithner also did not mention the yuan but praised China’s handling of their economy: “China’s success in shifting the structure of the economy towards domestic-led growth, including a greater role for spending by China’s citizens, will be a huge contribution to more rapid, balanced and sustained global growth.”