By Maximilian Clarke
Speaking from Beijing at the end of an official visit to China, the International Monetary Fund’s (IMF) Managing Director discussed the continued challenges facing the global economy and the role that China, the world’s second strongest economy, can play in bringing about a recovery.
Following a meeting with Premier Wen Jiabao, Vice President Xi Jinping, and Vice Premier Wang Qishan, Christine Lagarde addressed a press conference in the Chinese capital:
“We discussed key challenges facing the global economy, the Euro Zone in particular, and their implications for China and the Asia region,” said Lagarde. “We agreed on the importance of strengthened international policy cooperation and decisive collective action to ensure strong, sustainable and balanced global growth.
Europe has publically looked to the world’s biggest exporter for assistance in boosting the European Financial Stability Fund (EFSF)- a request which Beijing refused.
Again speaking of her meeting with the heads of the Chinese state, Lagarde continued: “We noted the growing interconnectedness of countries in today's global economy. As the world’s second largest economy, China plays a crucial role in helping to promote global economic recovery through trade, investment, and financing.
“China is on the right path in reducing domestic vulnerabilities by moderating the pace of credit growth, increasing provisioning and capital, and expanding the scope of macroprudential policies. Fiscal policy is also appropriately moving back gradually to balance.
Join us on