China's Hu says global recovery not firm

17th May 2010, Comments 0 comments

Chinese President Hu Jintao said Monday the world economic recovery was not firm and urged his German counterpart to step up cooperation on advancing reform of the global financial system.

Hu met visiting German President Horst Koehler and agreed to push forward the countries' trade ties, while increasing cooperation and consultation on international issues, China Central Television reported.

"At present, the basis of the world economic recovery is still not firm, all countries must continue to maintain economic stimulus measures and step up cooperation," the report quoted Hu as saying.

"China is willing to work with Germany to strengthen cooperation within the G-20 framework and push forward further progress in the reform of the international financial system."

China fully supports the huge 110-billion-euro rescue package put forward by the European Union and the International Monetary Fund to help Greece overcome its debt crisis, Hu said.

Koehler said: "Germany is willing to work with China to address the international financial crisis, to ensure that the global economy is open and to oppose all protectionist measures."

Koehler, on a five-day visit to China, is due to meet Premier Wen Jiabao, central bank governor Zhou Xiaochuan and Vice Premier Wang Qishan, the German embassy said.

The German president, who is a former head of the International Monetary Fund, could raise the issue of the value of China's currency.

Late last month, European Trade Commissioner Karel De Gucht told Chinese officials in Beijing that the yuan was undervalued and it would be in China's interest to allow the currency to appreciate.

Critics say that China's policy of keeping the currency undervalued gives its manufacturers an unfair advantage by making their exports cheaper.

US lawmakers have been pushing for China to be labelled a "currency manipulator" -- opening the door to possible sanctions.

On Wednesday, Koehler is scheduled to visit Shanghai, where he will tour the German pavilion at the World Expo.

© 2010 AFP

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