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Article featured in Business Beijing, December 2007
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English 1000, Chinese 1000

Verbatim

2007/12/15

“Private enterprises in China should be encouraged to invest abroad, and private companies should be able to use their assets denominated by the renminbi as a guarantee to borrow foreign exchange.”

Cheng Siwei, vice-chairman of the Standing Committee of the National People’s Congress, said when addressing a round-table meeting of multinational company CEOs. Not many Chinese enterprises have gone abroad, he said, adding that the country should create Chinese multinational companies in the real sense by encouraging more companies to directly invest abroad.

 

“We have put, and will continue to put in place, measures aimed at expanding imports and promoting more balanced bilateral trade.”

Premier Wen Jiabao, at the China-EU Business Summit on November 28, said China is not intentionally pursuing a trade surplus but is aiming for an overall balance of trade. The European Union’s exports to China have grown at an annual rate of more than 20 percent for two consecutive years, much higher than the 15 percent rate of export growth reported by the EU.

 

“China’s GDP will maintain a growth rate of 8 percent for the next 20 years. This conclusion is based on technological advancements, improvements in governmental functions and the country’s economic structure.”

Fan Gang, member of the Monetary Policy Commission of the People’s Bank of China, spoke at a forum on private placement. China will not lose its advantages in areas such as labour. However, Chinese companies still need to strengthen their innovative capabilities to acquire competitiveness at the high end. 

 

“China will not change its policy of keeping the US dollar as its main foreign reserve currency.”

Yi Gang, assistant president of the People’s Bank of China, in a speech at the Cato Institute in Washington D.C., said it is necessary for China to diversify its foreign reserves, but it will retain the US dollar as its main foreign exchange currency because most transactions in foreign trade and investment are denominated by the US dollar.

 

 



 
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