China, US to inject funds to boost global trade (Lead)December 5th, 2008 - 2:55 pm ICT by IANS
Beijing, Dec 5 (Xinhua) China and the United States Friday concluded their Strategic Economic Dialogue (SED), agreeing to make available $20 billion to help emerging economies boost their global commerce.”The two export-import banks (in United States and China) will make available an additional $20 billion for trade finance, particularly for creditworthy importers in developing countries,” US Treasury Secretary Henry Paulson told a press conference after the meeting.
The two sides agreed to “strengthen financial regulation together” and “enhance the role of developing countries in international financial institutions”, Chinese vice premier Wang Qishan told reporters after the conclusion of the fifth round of the SED.
Paulson described the talks as “productive” in his closing statement, and said the two sides “had a robust discussion” of the current global financial market turmoil and economic downturn.
Paulson said both nations would be “committed to strengthening the global economy.” He added that he welcomed recent measures by the Chinese government to strengthen domestic demand and maintain economic growth.
Both sides said that they would fight trade protectionism, and actively promote a successful Doha round of trade liberalization talks, which hit a deadlock in July on the differences between the developed and the developing economies over measures to safeguard subsistence farmers in poor countries from a surge in imports.
As a step to support trade amid the current financial crisis, the two sides announced an additional $20 billion would be churned out from the export-import banks of the two countries to finance trade. The financing would particularly favour “credit-worthy importers in developing countries,”, they said.
Paulson said he also discussed with his Chinese counterparts “the importance of domestic-led growth, and the importance of a market-determined currency in promoting balanced growth in China.”
The US secretary of state said China has decided to allow foreign banks to trade bonds in the country on the same terms as Chinese banks.
In addition, the two sides agreed to deepen cooperation on product and food safety, and vowed continued efforts to cooperate on energy and environment.
“China looks forward to continuing candid and pragmatic talks with the new US administration,” Wang said.
Tags: chinese counterparts, economic dialogue, henry paulson, international financial institutions, market turmoil, subsistence farmers, trade liberalization, trade protectionism, treasury secretary henry paulson, wang qishan