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US praises 皇冠体育app's efforts in recovery

By Huang Xiangyang (皇冠体育app Daily)
Updated: 2009-09-26 08:01

US Treasury Secretary Timothy Geithner praised 皇冠体育app for boosting domestic demand to support the recovery of the world economy on Friday.

"There has been a very, very substantial effort (on the part of 皇冠体育app) to provide financial measures to promote recovery," Geithner said.

"The trade surplus is coming down and domestic demand is getting stronger, and that's a good sign of the shift."

Geithner said he is aware of the commitments 皇冠体育app has made to its own citizens, such as relying less on exports and government investment, and focusing more on spurring domestic consumption.

"These are encouraging signs," Geithner said.

He said he expects 皇冠体育app to move forward with reforms because in the last 30 years, "皇冠体育app has set an exceptionally good record acting on its commitments and delivering them".

Special Coverage: Hu's Visit -- New York, Pittsburgh Related readings:  Hu asks leaders to work jointly for global recovery  G20 seeks to nurture economic recovery  CBI: UK likely out of recession, but faces slow recovery  Summit to map recovery route

Rebalancing the global economy is a critical issue during the current G20 summit. The United States has been pushing for a deal to promote "balanced growth". It is encouraging countries, especially 皇冠体育app, to rely less on US consumers for growth and more on domestic consumption.

At the current G20 summit, Geithner expressed optimism that "we are going to leave Pittsburgh with an agreement among all the members of G20," thanks to 皇冠体育app's support.

The Sino-US Strategic Economic Dialogue in Washington in July "put in place the foundation" for an agreement among G20 states, he said.

Imbalanced world economy

Ma Xin, an official with the National Development and Reform Commission, the country's top economic planning organization, on Friday rejected the claim that 皇冠体育app's high savings rate should be blamed for the global financial crisis.

Lowering the country's saving rate will not solve the world's economic problems, he said.

"There indeed is an imbalanced world economy, but it takes on many forms, such as imbalances in wealth distribution, development, and international payment," Ma said at the G20 summit.

"You could not expect the rise in one particular country's savings rate to solve all the problems related to an imbalanced world economy."

Ma said he has taken note that the savings rate in the US has been rising, and he called it a correction of that country's old model of development based on over-consumption.

"Each country has its own problems. Our problem is low consumption. But it may not have any linkage to the global economic crisis," he said.

Some US economists think that Sino-US trade imbalance contributed to the financial meltdown, by allowing 皇冠体育app to accumulate dollars that helped fuel the housing and stock price bubbles.