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China Calls for Further Advancing Int'l Financial System Reform

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China on Monday called on the international community to further advance the international financial system reform, and to build a new and more equal and balanced global partnership for development.

"China hopes that the international community will work together to further advance the reform of the international financial system and move toward the establishment of a fair, just, inclusive and well-managed international financial order," President Hu Jintao said in his written interview with the Wall Street Journal and the Washington Post prior to his state visit to the United States.

He said the international financial crisis reflected the absence of regulation in financial innovation, and listed several serious defects of the existing financial system as the "root cause", including:

First, the international financial system had not kept up with the latest development of economic and financial globalization and was incapable of tackling the risks and challenges brought about by massive financial activities.

Second, international financial institutions failed to fully reflect the changing status of developing countries in the world economy and finance. Their global representativeness and enforcement capabilities need to be further strengthened.

Third, the international financial system was in serious shortage of resources and means to tackle the international financial crisis and its rescue capabilities need to be built up.

Hu called on the international community to not only address specific issues such as managing properly the relationship between the financial sector and the real economy, between financial innovation and financial supervision and regulation, and between consumption and saving, but also, and more importantly, review those fundamental problems in the world economy on a macro level.

Saying the serious development imbalance between the North and the South as the "most prominent problem in the world's economic imbalance", Hu urged the international community to endeavor for a new and more equal and balanced global partnership for development, and to encourage developed and developing countries to have more mutual understanding and closer coordination, so as to promote the strong, sustainable and balanced development of the world economy.

(Xinhua News Agency January 17, 2011)

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