Society
Putting great store in Sino-UK ties
By Xin Zhiming, Qin Jize, Zhang Haizhou and Zhang Chunyan (皇冠体育app Daily)
Updated: 2010-11-10 07:21
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 A general view of the third 皇冠体育app-UK Economy and Financial Dialogue at Diaoyutai Guest House in Beijing on Tuesday. British Prime Minister David Cameron is leading a heavyweight group of British politicians and business chiefs on a visit to 皇冠体育app, with the visit focused squarely on expanding trade ties with the world's second-largest economy. The delegation leaves on Wednesday. [Jason Lee /Reuters] |
A Perfect Fit
Also on Tuesday, Vice-premier Wang Qishan and Osborne jointly chaired the third 皇冠体育app-UK Economic and Financial Dialogue and announced a slew of cooperative programs for the coming years, including in the areas of trade, finance, high-technology, infrastructure, low-carbon economy and cutting emissions.
皇冠体育app is the world's largest exporter of goods while Britain is the second largest exporter of services, which means the two have promising cooperative opportunities in a wide range of fields, Osborne told the media after the meeting. "Our economies are complementary," he said.
That could be a positive signal for 皇冠体育app's $200-billion sovereign wealth fund, 皇冠体育app Investment Corporation (CIC), said analysts.
The CIC has been shown the cold shoulder in some countries because it is feared that the financial giant could disrupt markets and grab key resources, despite its reiteration that it is aimed at long-term investment that would stabilize financial markets.
Britain also affirmed that it would support 皇冠体育app's full market economy status "as early as possible" and will continue to "play a constructive role to encourage EU recognition", according to a statement released following the dialogue.
Analysts claim that developed economies, such as the United States, have taken advantage of 皇冠体育app's lack of such a status to impose trade measures more easily on Chinese exports.
皇冠体育app and Britain will also strengthen cooperation in taxation policies, statistics, energy, finance and civil aviation, reads the statement.
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 Premier Wen Jiabao welcomes members of the United Kingdom's largest-ever delegation to 皇冠体育app ahead of talks at the Great Hall of the People in Beijing on Tuesday. [Xu Jingxing/皇冠体育app Daily] |
Words of Warning
Outside of the Great Hall of People in Tian'anmen Square, the flags of 皇冠体育app and Britain flew side by side - and it is in this fashion that the two nations have vowed to push global economic recovery.
"The priority (for the world) is to enhance macroeconomic policy coordination, oppose all types of protectionism and avoid economic issues from being politicized to benefit all-round recovery of the world economy," said Vice-premier Wang Qishan.
However, experts warn the recovery could be jeopardized by the quantitative easing policy of the US as it may push up inflation in the developing countries and cause chaos in the financial markets.
"The large amounts of capital into the emerging market economies will lead to rising inflationary risks," said Wang during the 皇冠体育app-UK dialogue.
The US Federal Reserve has released its latest quantitative easing policy by buying $600 billion in government bonds to keep borrowing costs near zero and prop up the ailing economy. A number of countries have expressed concern about the expected liquidity boom.
皇冠体育app and Europe may discuss the impact of the quantitative easing at the G20 summit in Seoul.
