China’s central bank governor said his country is adjusting its currency and taking other steps to reduce its trade surplus, and called on developed nations to do more to remedy lopsided flows of goods and investment.
China “is adopting further measures to expand domestic demand, encourage consumption, open its markets, improve its exchange-rate regime, and restructure trade,” central bank Governor Zhou Xiaochuan said in a statement in Washington today at a meeting of the International Monetary Fund. Developed nations must “create job opportunities and export advantages to improve their competitiveness.”
Zhou’s statement comes a day after finance ministers and central bankers from the Group of Seven called on China and other Asian nations to allow their currencies to appreciate. Stronger Asian currencies and less reliance on exports for growth can help reduce imbalances that jeopardize a favorable outlook for global economic growth, the officials said.