China’s Hu warns of fragile global recovery

The world economic recovery remains “slow and fragile” with the outlook uncertain, but China will promote its own rapid and stable growth, Chinese President Hu Jintao said on Friday.Hu, addressing an economic forum in St Petersburg, also said it was vital to press ahead with reforms to the international financial system that would give emerging markets a greater say in global governance.

While noting positive developments in the global economy, he said it was vital not to lose sight of the potential risks.

“More than two years after the international financial crisis the world economic recovery remains slow and fragile. The underlying impact of the crisis is still with us, and the outlook for the world economy is uncertain,” Hu said.

“In addition, international and regional hot spot issues keep flaring up. Uneven development between the north and south is more acute, and protectionism in various forms is resurfacing.”

Some economists — backed up by recent downbeat data — have warned that China, the world’s fastest-growing major economy and second-largest after the United States, is set to slow substantially.

Hu rebuffed such concerns.

“China will … advance reform and opening up, promote long-term, steady and fast economic growth and enhance social harmony and stability,” he said.

GREATER SAY

Hu added that on the global front, emerging markets needed to be given a greater voice in the international financial system as countries emerge from the effects of the crisis.

Hu made no direct mention, however, of the race to replace Dominique Strauss-Kahn, who has been charged with sexually assaulting a New York hotel maid, with French Finance Minister Christine Lagarde the front-runner to replace him.

“Today emerging markets and developing countries are taking a growing share of the global economy and playing a bigger role in global governance,” Hu said.

“The global economic governance mechanism should adapt to the new changes in the world’s economic landscape and observe the principles of mutual respect and collective decision making. It is of special importance to increase the representation and voice of emerging markets and developing countries in the new mechanism.”

China‘s rapid development over the last few years, which has been accompanied by an increasingly assertive tone in its diplomacy and growing military might, has unnerved countries around the region, especially Japan and Taiwan.

Hu repeated what has become China‘s mantra, that its rise is not a threat.

“China will remain committed to the cause of peace, development and cooperation … and follow the path of peaceful development and pursue a win-win strategy of opening up,” he said.

 

ST PETERSBURG, Russia (Reuters) – By Ben Blanchard(Editing by Douglas Busvine)