Zhou Xiaochuan: Facing More Challenges Such As Capital Inflow In The Short Run

Zhou Xiaochuan, governor of the people's Bank of China, said recently that China's economic growth momentum is still strong at present and for some time to come, but in the short term it is also facing the challenge of rising prices and capital inflows.

The Chinese government will further grasp the direction, strength and rhythm of macroeconomic policies so as to maintain a stable and rapid economic development, adjust the economic structure, and manage the economic policy.

The International Monetary Fund (IMF) International Monetary and Finance Committee (IMFC) twenty-fourth ministerial conference was held in Washington, D.C. 24.

In introducing China's economic situation, Zhou Xiaochuan pointed out that China's economy has maintained steady and rapid development since the beginning of this year, and has continued to change from the excessive growth of the previous policy stimulus to its own growth, and the trade balance has been improving.

It is estimated that the ratio of current account surplus to GDP will decrease further.

Zhou Xiaochuan pointed out that the momentum of world economic recovery has obviously weakened, and the risk of downward economic operation has increased. Therefore, global cooperation is urgently needed.

The major developed countries should introduce clear and credible medium-term adjustment strategy as soon as possible to boost market confidence and resist trade protectionism.

Emerging markets and developing countries should continue to adjust their structures and increase the sustainability of economic growth.

IMF should seize the whole world

Speaking of IMF reform, Zhou Xiaochuan stressed that with the spread and deepening of the global financial crisis, the international community has placed more expectations on the role of IMF.

IMF should start from finding the root causes of the crisis, and adjust the monitoring framework and supervision priorities.

At the same time, IMF should continue to improve its share and governance structure, promote the entry into force of the 2010 share reform package as soon as possible, and ensure the source of long-term funds to meet the needs of member states in coping with the crisis.

In addition, IMF should continue to study the inherent defects of the international monetary system and promote international reserves.

Xie Xuren, Minister of finance, pointed out at the meeting that the world economy is slowly recovering, but the uncertainty and instability increased. The international community should continue to carry forward the spirit of sharing the same boat, strengthen macroeconomic policy coordination, maintain financial market stability and promote economic growth.

He said that the world bank should continue to adhere to the core purpose of poverty reduction and development, enhance the voice and representativeness of developing countries in the world bank, and help developing countries improve their ability of independent development and sustainable development.