China turns down Geithner proposal

Nov. 6, 2010 at 2:39 PM
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BEIJING, Nov. 6 (UPI) -- China's vice foreign minister said balancing U.S. and Chinese trade accounts was not an appropriate topic for the upcoming Group of 20 nations summit.

Vice Foreign Minister Cui Tiankai told reporters, "We hope to see more balanced current accounts, but this may not be a good approach to single out this issue and put too much attention to it," China Daily reported Saturday.

In a pre-summit meeting of financial leaders in South Korea, U.S. Treasury Secretary Timothy Geithner proposed setting trade surpluses or deficit limits on current accounts at 4 percent.

Current accounts are a broad measure of a country's international trade.

G20 leaders are scheduled to meet Nov. 11-12 in Seoul.

In separate comments, China Daily said central bank Gov. Zhou Xiaochuan said the Chinese economy could absorb the additional capital that could flow into the country as a result of the U.S. Federal Reserve's $600 billion bond purchasing program announced Wednesday.

Officials from Brazil, Thailand and other nations have expressed concern that the program will either devalue the U.S. dollar or cause capital to flood into foreign markets.

"For its influence on China, our foreign exchange system still contains management for capital inflows. We have solid measures to avoid abnormal inflows, which cannot get in, or have to take the bypass," Zhou said.

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