China’s exit strategy hinges on US recovery: Zhou

Published on AFP, by Veronica Smith, July 28, 2009.

WASHINGTON – China’s exit strategy from emergency stimulus measures will hinge on the United States’ economic recovery and its successful end to pump-priming, China’s central bank chief said Tuesday.

Zhou Xiaochuan, governor of the People’s Bank of China, said that the Chinese and US delegates at high-level talks in Washington had discussed measures both sides had taken and would need to take to tackle the worst global economic crisis in decades.

“We will see how the United States is doing in overcoming the financial crisis,” Zhou said in translated comments to reporters on the sidelines of the final session of the two-day US-China Strategic and Economic Dialogue. 

If everything goes well in the United States, if we are confident that the recovery of the United States economy is established and stable … if we see the United States starts to exit its financial, fiscal and monetary policy then China will see what it will do at the time, he said.

Asked by a reporter whether China would wait until the United States moves first, Zhou replied in English: It’s not a necessity.

Certainly the Chinese policy is based on the Chinese economic situation, he emphasized … (full text).

Links:

U.S. Pacific Command Chief: U.S., China to resume military dialogue, July 29, 2009;

U.S., China Pledge to Sustain Stimulus, Rebalance World Growth, July 28, 2009;

EU Trade Officials Approve Penalties on Chinese Steel Pipes, July 28, 2009;

Stress behind the US-China dialogue, July 28, 2009.

China and America, Doubled up, July 23, 2009.

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