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Hu Presents Proposals for Tackling Financial Crisis at APEC Meeting

Chinese President Hu Jintao put forward three proposals for coping with the ongoing worldwide financial crisis at the 16th APEC economic leaders' meeting in Lima on Saturday.

"The rapidly-spreading international financial crisis, with its extensive impact, constitutes the most severe challenge confronting world economic growth," Hu said.

It is a major and urgent task for all countries and regions to deal effectively with financial risks, maintain international financial stability and promote world economic development, he added.

First, to curb the worsening financial crisis, all countries should take prompt and effective measures, enhance macroeconomic policy coordination, improve information sharing, help each other as much as possible, and employ all necessary fiscal and monetary means to stop the spread and development of the financial crisis, bring stability to global financial markets, stimulate economic growth, minimize the damage of the financial crisis on the real economy and avoid a global economic recession,the Chinese president said.

Second, the international community should earnestly draw lessons from the ongoing financial crisis and, based on full consultations among all stakeholders, undertake necessary reform of the international financial system in a comprehensive, balanced, incremental and result-oriented way with a view to establishing a new international financial order that is fair, just, inclusive and orderly and fostering an institutional environment conducive to sound global economic development, Hu said.

"The reform of the international financial system should both reflect the general law and principles of financial regulation and take into account the specific development stage and unique features of different economies," he said.

It should seek a balance among the interests of all parties and reflects, in particular, the interests of emerging markets and developing countries, he added.

Third, from a long-term perspective, it is necessary to change those models of economic growth that are not sustainable and to address the underlying problems in member economies, Hu said.

"We should also pay adequate attention to the impact of the financial crisis on the developing world and provide necessary support to relevant countries to help them maintain growth momentum," he pointed out.

The president also briefed the meeting on the measures China has taken to tackle the financial crisis.

"China has made active efforts within its ability and taken a range of important measures, including ensuring stability of the domestic financial system, increasing liquidity in the financial markets and institutions and intensifying macroeconomic policy coordination and cooperation with other countries," he said.

China has, in light of the changing domestic and international economic situation, adjusted its macroeconomic policy and taken steps to lower the required reserve ratio, cut the deposit and lending rates, and ease the corporate tax burdens, Hu stressed.

Recently, the Chinese government has adopted even stronger measures to boost domestic demand. Between the fourth quarter this year and the end of 2010, China will invest an additional 4 trillion yuan (584 billion U.S. dollars) to accelerate projects related to people's livelihood, infrastructure, the eco-environment and post-disaster reconstruction.

"We are ready to work together with the rest of the international community to preserve stability of international financial markets," Hu said.

Hu arrived here on Wednesday for a state visit to Peru and the Economic Leaders' Informal Meeting of the Asia-Pacific Economic Cooperation (APEC) on November 22-23.

(Xinhua News Agency November 23, 2008)

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