China talks up growth, reform at G20 Chinese Premier Li Keqiang...

China talks up growth, reform at G20

Chinese Premier Li Keqiang has called for greater global coordination and consideration of policy spillovers as the Group of 20 summit gets underway, where China's own outlook will be a main talking point.

"Macroeconomic policy coordination needs to be strengthened," Li said in a video message on Friday at the opening of this weekend's meeting in Shanghai.

"The global economic and financial situation may have become more grim and complex. It is time for countries to stand together to tide over difficulties."

Germany appeared to all but rule out coordinated stimulus to counter a deepening global chill, and US Treasury Secretary Jack Lew said there was no need for a crisis response as seen in 2009 when major economic agreed on coordinated stimulus to prevent a worldwide depression.

"Talking about further stimulus just distracts from the real tasks at hand," Germany's Minister of Finance Wolfgang Schaeuble said, rebuffing a recommendation from the International Monetary Fund (IMF) that the G20 should start planning now for a coordinated stimulus program.


The health of the world's second-largest economy, which hosts the G20 presidency this year, is a key talking point during the two-day summit this weekend.

Overhanging the summit of major economy finance ministers and central bankers are global concerns about China's ability to manage its domestic markets, currency and commitment to wider restructuring reforms.

China's central bank governor Zhou Xiaochuan repeated assurances the country would not stage another devaluation of its currency, the yuan, to support the economy.

Few in the G20, however, are underestimating China's economic challenges.

International Monetary Fund chief Christine Lagarde said China faced an "overwhelming" agenda of structural reforms as its leaders open up financial markets and move the economy away from debt-fuelled investment.

Geopolitics is also a worry for European representatives.

French Finance Minister Michel Sapin said it was best for the UK to remain in the European Union, and expects the British people would make the "right decision" at a June 23 referendum.

http://www.businessspectator.com.au/news/2016/2/27/china/china-talks-growth-reform-g20