CHINA hopes this week s G20 summit in Seoul will help promote recovery in the global economy and deepen reforms of the world s financial systems, Commerce Minister Chen Deming said Sunday.
We hope the G20 can play a big role in promoting global monetary reforms and governance, Chen said during President Hu Jintao s State visit to Portugal.
China s trade surplus in 2011 will be manageable as the country s foreign trade still faces global uncertainties, Chen said.
I believe China s foreign trade will continue to grow next year but the growth will not be very strong, he added.
Chinese trade officials have forecast the trade surplus in 2010 could fall to US$US180 billion from US$196 billion in 2009.
Concerns over global trade imbalances, largely China s trade surpluses with Western nations, and the threat of currency war will top the agenda at the meeting of G20 leaders Thursday and Friday.
G20 countries will try to resolve at least some of their differences over how best to reduce the imbalances that are destabilizing the world economy.
China has been trying to fend off foreign pressures on its currency policy, arguing that the country has taken measures to boost its imports to help reduce the trade surplus.
During Hu s recent visit to France, China signed of around US$20 billion worth of airline, petrochemicals and nuclear fuel deals.
Chen said China would welcome a more balanced relationship, but Europe must play a role by ensuring its own markets were open for Chinese investment.
On Friday, Vice Foreign Minister Cui Tiankai suggested U.S. Federal Reserve s US$600 billion bond purchasing program would add to financial instability in China and other countries.
The overseas edition of the People s Daily said this quantitative easing was bad for China and bad for the world.
In essence this is an uncontrolled increase in money supply, equal to indirect exchange rate manipulation, Shi Jianxun of Shanghai s Tongji University wrote in the guest commentary.
Cash will flood into financial institutions and go overseas, creating new asset bubbles and lie in ambush for future inflation, Shi added.
The United States and China on Saturday appeared to take a step back from mounting criticism of each other s economic policies, but China made clear it was still wary of U.S. latest move to print more money. (SD-Agencies)
