China will respond positively to the United States in the Economic Strategic
Dialogue between the two sides, which is to be held later this week, the central
bank chief said yesterday in Beijing.
"(US Treasury Secretary) Hank Paulson raised the issue of having an economic
dialogue. We are prepared to give a very positive and active response to that,"
Zhou Xiaochuan, governor of the People's Bank of China (PBOC), said at the Caijing Magazine Annual Conference.
Zhou Xiaochuan, governor of the People's Bank of
China. [File photo]
The dialogue issue was raised in September by Paulson when he met
Vice-Premier Wu Yi during his first visit to China in his capacity as the
The dialogue's first session will be held on Thursday and Friday. Zhou will
be among top Chinese economic policy makers at the talks. The US delegation will
include Federal Reserve Chairman Ben Bernanke, Trade Representative Susan Schwab
and other senior officials.
"This is a very important strategic dialogue and probably it's good for
policy co-ordination and also for trade imbalances and many other issues," Zhou
He made the remarks during a question-and-answer session after his speech,
which itself was rather academic and was mainly about the rationale of China's
current monetary policy.
Although China has been studying the monetary policies of countries with
mature market economies, the goals of China's monetary policy are still
different from those countries, Zhou said.
He said at the current stage, China could not pick controlling inflation as
the monetary policy's sole target.
"We have to consider other goals, such as economic growth, employment and the
country's balance of payment," he said
Zhou said he had heard comments about PBOC's lack of independence in
formulating monetary policy.
He pointed out that China's monetary policy has been supportive to the
country's overall development and reform agenda.
(For more biz stories, please visit Industry Updates)