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BIZCHINA> Top Biz News
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G20 seeks to nurture economic recovery
(China Daily/Agencies)
Updated: 2009-09-25 08:24 Leaders of the world's biggest countries began arriving for the Group of 20 (G20) summit yesterday to seek ways to nurture a recovery from the worst recession since the 1930s and build safeguards against future catastrophes.
US President Barack Obama, hosting his first G20 summit, will lay out a massive agenda that includes tackling one of the thorniest problems facing the global economy - how to even out massive imbalances between export powerhouses such as China and the deeply indebted United States. The sheer volume of problems the two-day summit is set to address - from the lopsided global growth model to climate change, tougher financial regulation and caps on bankers' pay - means expectations for any near-term action are low. European Central Bank Governing Council member Axel Weber said yesterday he still expects the summit will provide long-term changes to global financial structures, proving more productive than previous meetings.
Reforming the current international financial institutions will help stabilize world currencies, including China's renminbi (RMB), said Cao Yuanzheng, chief economist of Bank of China International, an investment service. That will benefit the Chinese people, he said. The RMB's dramatic appreciation against the dollar during the past two years has taken a toll on some small- and medium-sized exporting manufacturers, whose profit margin decreased significantly. A stabilized yuan would help these Chinese exporters maintain their market share, he said. Meanwhile, the yuan's rising value means Chinese people can buy more with the same amount of money on the international market. (For more biz stories, please visit Industries)
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