At the Washington Summit Meeting, China Holds the Cards
With the G20 meeting set to begin in Washington this weekend, China is the focus of attention as world leaders strive to find a way out of the global financial mess. From the International Herald Tribune:
While President Nicolas Sarkozy of France proposed the meeting and President George W. Bush agreed to be host of an expanded conference of G-20 nations, the most sought-after country at the gathering some are calling Bretton Woods II is likely to be China.
With nearly $2 trillion in foreign exchange reserves and an economy that is still growing – even if more slowly than it was before the crisis erupted – China is one of the few participants with the financial power to aid countries in distress, either directly or by contributing to the coffers of the International Monetary Fund.
“We will actively participate in rescue activities for this international financial crisis,” Yi Gang, deputy governor of the Chinese central bank, told a news conference Friday in Beijing, according to Reuters. It was one of the clearest indications yet that China stood ready to help the IMF aid countries hit by the global credit crisis.
See also reports from:
VOA: “China’s Main Concern at G-20 is Domestic”
Reuters: “China ready to help tackle crisis via IMF-PBOC”
Xinhua: “Bush sets tone for G-20 Summit”
Christian Science Monitor: “A new economic club of nations“