By Michael Forsythe
Nov. 15 (Bloomberg) -- Chinese President Hu Jintao, speaking to leaders from the Group of 20 nations in Washington, said China can help alleviate the impact of the financial crisis and slowing global growth by stoking its own economy.
“Steady and relatively fast growth in China is in itself an important contribution to international financial stability and world economic growth,” Hu said today, according to the official Xinhua News Agency.
Last week China announced a $586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies.
The announcement came amid signs that China’s own growth is slowing. The country’s gross domestic product grew by 9 percent in the third quarter from a year earlier, the slowest rate in five years.
China accounted for 27 percent of global economic growth last year, more than any other nation, according to the International Monetary Fund.
“China has taken an active part in the international cooperation to deal with the financial crisis and played a positive role in maintaining international financial stability and promoting the development of the world economy,” Xinhua quoted Hu as saying.
Hu suggested that rich countries must take the lead in addressing the crisis.
Developed nations “should undertake their due responsibilities and obligations” by stabilizing their economies, restoring growth and taking steps to “safeguard investors’ interests,” Xinhua reported Hu as saying.
To contact the reporter on this story: Michael Forsythe in Washington at mforsythe@bloomberg.net.
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