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China, U.S. agree on cautious withdrawal of stimulus measures

0 CommentsPrint E-mail Xinhua, May 24, 2010
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Chinese and United States officials agreed on Monday they should be cautious and prudent about the timing to withdraw economic stimulus measures from their respective economies.

Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission (NDRC), told a news briefing on the second China-U.S. Strategic and Economic Dialogue of the agreement.

Zhang said the foundation of the world economic recovery is "not yet solid," adding that the sovereign debt crisis in several eurozone nations is adding to uncertainty.

Europe's economy is a large portion of the world economy and the European Community is China's biggest trading partner.

China, therefore, will "keep a close eye on the crisis" and in particular its "negative effect on the economic recovery in Europe," said Zhang.

Zhang said given that the scale of the debt crisis and number of countries involved "are still limited," China should continue its economic policies stated in the government work report early this year.

Zhang said, chairman of the NDRC Zhang Ping introduced China's macro economic situation and major economic tasks for this year Monday morning to U.S. officials. The major tasks cover expansion of domestic demand, consumption in particular, stabilization of prices, transfer of economic development mode and structural adjustment, and stabilizing the development of an open economy.

Chinese Vice Premier Wang Qishan and U.S. Secretary of Treasury Timothy Geithner, special representatives of the two nations' presidents, are co-chairing the economic track of the two-day S&ED scheduled for Monday and Tuesday at the Diaoyutai State Guest House in Beijing.

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