BIZCHINA> Review & Analysis
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BIZCHINA> Review & Analysis
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New roles for emerging powers
(China Daily)
Updated: 2009-08-31 15:12 Globally, the US is playing a responsible role by hosting two G20 financial summits, with one in Washington last November and one in Pittsburg this September. To make the international system work is the key. And the US has born the brunt in this regard despite the fact that the US could not command the G20. Q: But the world is blaming the US for giving birth to the financial crisis because of its free markets, lack of regulation and the greed of bankers. A: It is wrong that we criticize only the US for the problems. Not only London bankers, but also banks from Germany and other countries should be blamed for the worldwide financial crisis. So, again, I think, it is not wise to criticize only the US. In the US, the financial facilities have been eroded. That is the problem, and this also happened in other countries. We must rethink market systems and strengthen financial regulations. We need joint and global efforts. Q: China's stimulus package has worked well, and many believed that the government in this country has played a powerful role. How do you comment on the government's role in Western countries?
There are a lot of stories since the collapse of the Soviet Union regarding the role of the market. And one thing at the heart of it is regulation. However, this time in tackling the financial crisis, the governments have planned a very big role in a more positive way. And in this way, the authorities have become more creative. Globally, with compassion, using the same measures that were used to tackle the Great Depression in the 1930s, all the countries this time are acting roughly in the same direction. The policies are well coordinated, and we can see the financial crisis has brought the countries in the world closer. Q: It seems you are quite optimistic about economic development globally and in China. So what do you think are challenges for China in a changing world? A: At home, I think China should tackle the problems of rebalance, especially in the rural regions. China has been developed well, but the disparities between the cities and rural regions have grown larger during the past few decades. This is a big challenge for China. In this time of financial crisis, China needs to design near-term fixes and long-term strategies in a more balanced manner. This should be shown in further urbanization. Globally, I think China should actively participate in global governance constructive. From a longer-term perspective, China should participate in many global issues such as climate change and food security, and offer suggestions with vision. Economically, the next danger could be protectionism. The financial crisis has basically bottomed out, and many countries are aiming to bolster their recovery. So I think that possibly they will use some economic weapons to protect their industries, and then the policies might evolve into protectionism. The world power shift has been happening in a peaceful way, without wars. But in reshaping international economic and financial territories, trade wars and protectionism are threats China and other countries must face. (For more biz stories, please visit Industries)
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