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China 'draws lessons' from US financial turbulence

(Xinhua)
Updated: 2008-06-18 06:39

China is not only learning from the experience of US macro economy management, but also is drawing lessons from the current US financial turbulence, China's top banker told reporters on Tuesday.

"China is the world's largest developing country and the United States is the world's most advanced economy. China always hopes to draw lessons from the US experience in macro economy management and market development. However, during this time of discussion, we are also interested in drawing lessons from the US financial turbulence," Zhou Xiaochuan, governor of the People's Bank of China, told reporters on the sidelines of the ongoing 4th Sino-US Strategic Economic Dialogue, or SED, in Annapolis.

Zhou said the first session of the SED focused on how China and the United States address the problems in each other's economy and financial markets, including financial turbulence and commodity price hike.

"We discussed issues like what is the most effective policy to manage this business cycles? what kind of the role can monetary and fiscal policy play in coping with the financial fluctuation? What kind of the role can exchange rate play in maintaining the world's financial stability?" he said.  

Aside from the issue of financial and macro economic management, the June 17-18 SED will also address issues of developing and protecting human capital, the benefits of trade and open markets, enhancing investment, and advancing joint opportunities for cooperation in energy and environment.

The meeting is co-chaired by visiting Chinese Vice Premier Wang Qishan and US Secretary of Finance Henry Paulson who act as special representatives of the state leaders of the two countries.

Participants of the two-day meeting include minister-level officials and other senior officials from the two governments.  

China and the United States will sign a 10-year cooperation agreement on energy and environmental protection after the meeting.