Since the outbreak of the global financial crisis, the Chinese Government has taken a series of measures to cope with the impact of the crisis and boost economic growth, which has led to remarkable achievements. At the same time, some developed countries are disseminating what they say are "China's responsibilities." They claim China should take on responsibility for"correcting global imbalances" and saving the world economy. In an exclusive interview with People's Daily, Huo Jianguo, President of the International Economic and Trade Research Institute of the Ministry of Commerce, said Western countries have a biased view of China.
People's Daily: The point of "China's responsibilities" is to describe China as the original cause of world economic imbalances, blaming China's inaction in stimulating global economic recovery. What do you think about it?
Huo Jianguo: China is also one of the victims of the global financial crisis. The direct cause for the crisis was the deregulation of Wall Street financers and speculation in financial derivatives and futures. The U.S. Government's excessively loose financial regulation and its long-term manipulation of the U.S. dollar, which have led to asset bubbles in the global market, are the fundamental reasons in systematic terms.
Also, an unfair global economic mechanism and the lack of global coordination worsened the situation.
I think the global economy's real imbalance is reflected by the uneven development levels of developed and developing countries, as well as the imbalanced distribution of global asset profits due to random capital market speculation by financial institutions, mainly those in the United States, which disregarded the real state of the economy.
How do you personally estimate China's efforts to cope with challenges of the crisis and in pushing forward global recovery?
Over the years, China's actions show it is a responsible country actively working for the promotion of world peace and development.
During the 1997 Asian Financial Crisis, China kept the yuan stable, stood as a pillar in regional recovery and prevented the worldwide spread of the crash, contributing more than one quarter of global economic growth.
After the onset of this global financial crisis, China's quick response was reflected in its active participation in multilateral anti-crisis coordination efforts including within the G20, and its proactive fiscal policy and moderately loose monetary policies to maintain economic growth and boost domestic demand. China as a responsible large economy has played a huge role in world economic recovery. As the world's second largest importer, China's imports dropped only 11 percent in 2009 while, during the same year, the volume of global trade in goods fell 23 percent, and imports to the United States dropped 26 percent. In 2010, China's imports have maintained sound growth, increasing 40 percent monthly while its trade surplus keeps dropping.
What I also want to stress is the U.S. dollar is the major settlement and reserve currency in the global market. But for years, particularly in the past decade, the U.S. Government kept practicing an excessively loose monetary policy, repeatedly expanding the issuance of dollars to offset the country's long-term current account and fiscal deficits, which has led to serious price bubbles in the global assets market and also caused an imbalance in global economic development. Despite this, Western countries are unscrupulously blaming the exchange rate regime of the Chinese currency (yuan) for global imbalances.