Search China Travel News:

China on Monday affirmed its intention to enhance the flexibility and strengthen the role of market forces in its managed, floating exchange rate regime.

This was included in a joint statement of the China-U.S. Joint Economic Committee which wrapped up its 17th session here to address macroeconomic issues including global imbalances, financial sector reform and cooperation in international affairs.

The two sides agreed that exchange rate policy is a sovereign decision, but can have a global impact. They reaffirmed that excess volatility and disorderly movements in exchange rates are undesirable for economic growth.

They said global economic performance remains sound, notwithstanding the impact of rising oil prices, and that inflation and inflationary pressure are relatively contained.

The Chinese side explained that the China's economic developments remained stable and rapid. The U.S. side noted that economic conditions in the U.S. remain solid.

However, both sides noted potential risks associated with high oil prices, tightening of financial market conditions, widened global current account imbalances and rising protectionism.

In discussing the situation and outlook for the global economy, the two sides noted that economic growth had not taken place evenly across the world, and that it was necessary to address current account imbalances that have arisen in order to sustain global growth.

They acknowledged that they have a shared responsibility, along with other major economies, to implement the policies necessary to reduce these imbalances.

Both sides welcomed the strategic review and the reform agenda of the Bretton Woods Institutions. They agreed that governance of the IMF should evolve along with the world economy so that countries' position better reflect their global weights and all members are more effectively represented.

China and the United States reiterated the importance of actions to identify and combat terrorist financing and money laundering, and agreed to take necessary steps to prevent abuse of financial systems within their jurisdictions.

The two sides reiterated their support for the successful conclusion of the WTO Doha Development Round negotiations.

The next session of the committee is set to be held in Washington, D.C..