TOKYO — China is willing to offer the eurozone support on getting through the difficulties, said Yi Gang, vice-governor of the People’s Bank of China on the annual meetings of International Monetary Fund and the World Bank Group Saturday in Tokyo. Related reading: Hands still being held out for Chinese help Eurozone may look to Beijing for funds Yi took parEuropean Union markett in a seminar on discussing the strengthening of eurozone with Jorg Asmussen, the executive board member of European Central Bank. Yi expressed China’s point of view on the European sovereign debt crisis and the recovery plan of the eurozone. The European market is one of the largest markets in the world for China, so China suffered a significant impact of the crises through the real economy and financial market. China’s export and trade with Europe slightly declined this year due to the shock, said Yi Gang. But China never stopped investing in the European Union market even during the crises as China has confidence on EU, he said. Yi also criticized the policy-making mechanism in the eurozone, saying long process of discussion makes the institution cannot take necessary measures on time during the crises. He said uncertainty damaged investors’ confidence. China keeps very close cooperation with the European Financial Stability Facility and the European Stability Mechanism to support the recovery of eurozone, Yi said.

17 january 2013

 

TOKYO — Yi Gang, vice-governor of the People’s Bank of China, made a speech at the last day of the International Monetary Fund and the World Bank annual meeting Sunday to explain the monetary policy of China.

Yi stressed that the most important job for central bank is to control inflation. China is developing dramatically, and local governments have desires of pursuing higher growth, so the central bank need to remind the governments the danger of inflation.

He said the moral explanation is not enough, so the central bank has to use some tools, including required reserved ratio, open market operation, and exchange rate policy, to control the growth rate in a manageable range.

Yi said China is in the process of opening up to the world, so the macro economy policy in China has to consider not only domestic problems, but also external issues. China is facing the dual challenges to balance the internal and external markets.

China made a lot of efforts on transforming China’s economy from centrally planed economy to market oriented one in recent years, including banking reform, interest liberalization, and exchange reform, he said.