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MOSCOW, March 30 (Xinhua) -- Russia and China "have similar positions" on the reform of the international financial system, Russian presidential aide Arkady Dvorkovich said Monday. Both Russia and China have voiced support for the notion of a "supra-national reserve currency," and the two countries have held discussion over the issue, Dvorkovich told reporters at a briefing. "Indeed, we have similar positions," Dvorkovich said, adding the G20 London summit may initiate broad consultation over the issue. The applicability of a supra-national reserve currency in the international balance and trade can be taken into consideration in the short term, said Dvorkovich, who added there is yet no serious discussion about using the currency in the cash flow. The presidential aide also said Russian Ruble and Chinese Yuan should be included in the basket of the IMF's Special Drawing Rights (SDRs). When speaking of the upcoming meeting between Chinese President Hu Jintao and his Russian counterpart Dmitry Medvedev on the sidelines of the London summit, Dvorkovich noted it revealed the significance of bilateral ties for both countries. Sharing a profound prospect for further cooperation, Russia and China have huge potentials for cooperation in the fields like energy, industry, service and cultural exchanges, he added. Dvorkovich told Xinhua that having great potential for cooperation, BRIC (Brazil, Russia, India and China) share "similar interests" on the assurance of the world's stable economic growth and the reconstructure of the international financial supervision system. BRIC will continue to play a bigger role in the future global economic and financial system, he said. Yet the four countries will not issue a joint statement alone at the G20 summit, since only one comprehensive statement, indicating all parties' agreed stance, will be passed at the summit, he added.
BEIJING, April 9 (Xinhua) -- Venezuela President Hugo Chavez concluded his working visit to China and left Beijing on Thursday night. During his two-day stay, Chavez met with Chinese President Hu Jintao and Vice President Xi Jinping respectively, exchanging views on enhancing the bilateral strategic partnership. Chavez also visited the Party School of the Central Committee of the Communist Party of China (CPC) earlier on Thursday, the highest training institution for CPC officials. Addressing about 100 Chinese officials, he said the two countries witnessed great progress in their cooperation in economy, science and technology areas. Chinese President Hu Jintao (R) meets with Venezuelan President Hugo Chavez at the Great Hall of the People in Beijing, capital of China, on April 8, 2009 Speaking highly of China's development and its important role in tackling the global financial crisis, Chavez called for closer cooperation in such areas as investment, cadre exchanges and petroleum resources. Invited by President Hu, Chavez arrived in Beijing on Tuesday night. It is his sixth China trip since he was elected president in 1998.

BEIJING, April 13 (Xinhua) -- China's Ministry of Finance (MOF) said Monday that fiscal revenue fell 0.3 percent from a year earlier to 440.22 billion yuan (64.43 billion U.S. dollars) in March. First-quarter fiscal revenue fell 8.3 percent to 1.46 trillion yuan, the ministry said on its website, while tax revenue shrank 10.3 percent to 1.3 trillion yuan. Fiscal revenue includes taxes as well as administrative fees and other government income, such as fines and income from government-owned assets. Business profits shrank as economic growth slowed, the MOF said, and tax cuts intended to spur the economy and the financial markets reduced government revenues. First-quarter business income tax revenue fell 16.7 percent. China halved the purchase tax on cars with engine displacements of less than 1.6 liters on Jan. 20, and revenue from that tax was down 7.6 percent in the first quarter. To shore up the stock market, the government cut the share trading stamp tax from 0.3 percent to 0.1 percent last April and scrapped the stamp tax on stock purchases in September. And even though the benchmark Shanghai Composite Index is up more than 35 percent so far this year, the tax cuts on share transactions meant a decline of 86.2 percent in revenue from that category in the first quarter. Actual revenue amounts in each category were not released. Customs tariff revenue fell 23.9 percent during the first quarter, the MOF said, without giving further details. Central government fiscal revenue fell 17.7 percent in the first quarter to 721.3 billion yuan, while local government fiscal revenue rose 3 percent to 742.9 billion yuan. First-quarter fiscal expenditures surged 34.8 percent to 1.28 trillion yuan, as both the central and local governments adopted a proactive fiscal stance to boost the economy and domestic demand. China unveiled a 4-trillion-yuan stimulus package in November to be spent over in next two years, with 1.18 trillion yuan from the central government. Fiscal revenue exceeded 6.13 trillion yuan in 2008, up 19.5 percent.
SEOUL, April 7 (Xinhua) -- Li Changchun, a senior official of the Communist Party of China (CPC), on Tuesday called for stronger economic and trade ties between China and South Korea and urged their business communities to work together to help promote the strategic cooperation between the two nations. Li, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, made the call in an address at a welcome luncheon for him hosted by four Korean business groups: the Korea Foreign Trade Association, the Korea Chamber of Commerce and Industry, the Federation of the Korean Industries, and the Korea Federation of Small and Medium Businesses. Li Changchun, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, delivers a speech during a luncheon with chiefs of four South Korean business lobby groups in Seoul, South Korea, on April 7, 2009. Li praised the development of bilateral ties since China and South Korea established diplomatic ties 17 years ago. During the past 17 years, bilateral relations have witnessed rapid development and cooperation and exchanges expanded in a comprehensive manner, which has benefited the two countries and the region, he said. The Communist Party of China and the Chinese government attach great importance to the ties with South Korea and are willing to work with South Korea to continue strengthening and deepening the strategic cooperation, he said. Li spoke about China's stand regarding the current global financial crisis, the measures it has adopted to counter the crisis and its participation in international cooperation. The London summit of the Group of 20 yielded pragmatic results, he said. At the summit, Chinese President Hu Jintao's speech on strengthening macro-policy coordination, reforming international financial institutions and improving financial regulation, played a constructive role in the outcomes of the meeting, Li said. He said that Hu and his South Korean counterpart Lee Myung-bak, at their meeting in London, agreed to work to deepen the pragmatic cooperation in various fields between the two countries and push forward the bilateral relations. Li suggested both sides make efforts to deepen the mutually beneficial cooperation to ensure the smooth growth of bilateral trade, enhance policy coordination to promote financial cooperation, work out new ways to boost mutual investment and strengthen multilateral cooperation to improve the international trade environment. He also proposed entrepreneurs of the two countries continue to contribute to the bilateral strategic cooperative partnership, make new efforts to promote the mutual understanding and friendship between China and South Korea, facilitate the exchanges between the younger generation and promote the cultural exchanges between the two nations. South Korea is the last leg of Li's four-nation tour, which has already taken him to Australia, Myanmar and Japan.
BEIJING, March 26 (Xinhua) -- China's central bank governor has spoken highly of the government's rapid responses to the current global financial crisis, featuring decisively adopting a proactive fiscal policy and an adaptively easing monetary policy, and launching a bundle of timely, targeted and temporary policies and measures. The prompt, decisive and effective policy measures adopted by the Chinese government demonstrates "its superior system advantage when it comes to making vital policy decisions," says Zhou Xiaochuan, president of the People's Bank of China (PBC), in an article entitled "Changing Pro-cyclicality for Financial and Economic Stability." It is Zhou's third article published on the central bank's official website (WWW.PBC.GOV.CN) this week to discuss the issue of the current global financial crisis. His first and second articles, published on Monday and Tuesday, are entitled "Reform the International Monetary System" and "On Savings Ratio," respectively. In the third article, the 61-year old central bank governor tries to find out the root causes for the current financial crisis, including but not limited to lessons on monetary policy, financial sector regulations, accounting rules. The top Chinese banker says he wants to stimulate debate and discussions on some of the pro-cyclical features in the system, possible remedial measures, and how monetary and fiscal authorities can play their professional roles at times of severe market distress. "Financial crises normally originate in the accumulation of bubbles and their subsequent bursts. Usually, economists pay a lot of attentions to pro-cyclicality on the macro level. However, on the micro level, there are quite a number of notable pro-cyclical features embedded in the market structure today, which should be addressed as we deal with the current crisis and reform the financial system," he says. Zhou suggests that in the current market structure, more counter-cyclical mechanisms or negative feedback loops on micro-level should be put in place to sustain a more stable financial system. In the article, he notes that rating problems and herding phenomenon arise from outsourcing. The global financial system relies heavily on the external credit ratings for investment decisions and risk management, giving rise to a prominent feature of pro-cyclicality, according to the central bank governor. "Economic upswings produce euphoria and downturns generate pessimism," he says, "Many market players adopting ratings from the three agencies and using them as the yardstick for operations and internal performance assessments clearly result in a massive "herd behavior" at the institutional level." Zhou points out that some market players seem to have forgotten that the ratings are no more than indicators of default probabilities based on past experiences but were never meant to be guarantees for the future, he says. "Once problems take place, as we have seen during the current crisis, fingers are pointed to the rating agencies," he says. He suggests that financial institutions should try to rely more on internal rating in assessing risks. He calls for giving full play to the professional role of authorities in maintaining overall financial stability and establishing a counter-cyclical mechanism for capital requirement "To stabilize markets under severe stress, finance ministries and central banks need to act fast and apply extraordinary measures," he says, "Untimely or delayed response falls behind the curve and would make the outcome less than desired even if the response is correct and strong." In modern Western societies, a prolonged political process for mandates to finance ministries or central banks often miss the best timing for action, Zhou says, adding, "We have observed such cases during the current crisis." He suggests that governments and legislatures may consider giving pre-authorized mandates to ministries of finance and central banks to use extraordinary means to contain systemic risk under well-defined stress scenarios, in order to allow them to act boldly and expeditiously without having to go through a lengthy or even painful approval process. "Such systematic pre-authorized mandates would put the specialized expertise of finance ministries and central banks to the best use when markets need it the most," he stresses. The central bank governor attributes China's current success in easing the impacts of the crisis to the country's financial sector reform and ongoing macroeconomic stimulus measures In 2003, fully aware of the systemic vulnerabilities of China's banking industry, the Chinese government made a courageous and strategic decision to restructure the four state-owned commercial banks, says Zhou, who took over as the PBC governor in late 2002. In the article, Zhou gives a look back on the reforms of the country's major banks and security industry. But he warns, "We should bear in mind that despite the notable achievements in banking reform, the major banks have not gone through a full business cycle and still have much to improve. An economic slowdown will be the ultimate stress test for the robustness of the banks' strengths." According to the bank governor, irrespective of China's sound financial sector, the Chinese economy, especially the export sector, has felt the impact brought by the slowdown of the global economy. He praises the Chinese government for its plans to stimulate domestic demand and promote stable and relatively rapid economic growth, including the extra investment of 4 trillion yuan (685 billion U.S. dollars) in over two years, the ten measures to revitalize the industrial sectors, and other bolster measures to increase money supply, promote employment, reform taxes and medical and healthcare system. "Having taken the above-mentioned measures, China expect to maintain stable economic growth by boosting domestic demand and reducing dependence on external demand, thus serving as a stabilizing force in global economy," Zhou says. In overall, the macroeconomic measures have produced preliminary result and some leading indicators are pointing to recovery of economic growth, indicating that rapid decline in growth has been curbed, he concludes.
来源:资阳报