Sunday, November 9, 2008

China no longer to shun calls to shoulder greater international responsibility

China has long taken a low-key approach on international affairs, focusing instead on domestic issues. But some analysts say that given the current climate, Beijing may no longer be able to shun calls for it to shoulder greater responsibility.

All eyes are inevitably going to be on China. It's got all the money that the world needs. Whether China will use that money to ride to the rescue, and how it would do it, is the big outstanding question.

World Bank President Robert Zoellick said China is in a good position to have a strong fiscal expansion, a way to offset the effects of the international financial crisis.

"China is in a very good position to have a strong fiscal expansion. The Chinese authorities spoke of that aspect," he told a press conference in Sao Paulo, where he participates in a G20 meeting.

China benefited from the high liquidity in the global market in the last years, which proves that the injection of resources that is taking place in the financial markets can be, to many countries, an opportunity that comes from the crisis, he said.

The World Bank president stressed that the G20 debates changed their focus in the last months from the need for homogeneous fiscal policies to implementation of expansion policies in order to fight the threat of a global recession.

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