US-China conflict may be central at G20 summit
And possible disagreements could impact the settlement of currency issues and cause tensions at the upcoming G20 Seoul Summit - where conflicts between the US and China are expected to take center stage, they said.
Finance ministers and central bankers from the G20 members met on Friday in Gyeongju, Republic of Korea. The two-day meeting will focus on coordination of currency issues and trade imbalances. The meeting is meant to pave the way for the meeting of world leaders at the G20 summit at the beginning of next month.
But Chinese economists and some sources from the Republic of Korea said they are not hopeful about solid agreement being reached during the meeting as the US proposal does not have the support of many emerging nations including China, Russia and India, and also Germany, which runs a huge trade surplus.
The US called for an accord on "norms" for exchange rate policies and also suggested nations limit any surplus or deficit on current accounts to 4 percent of their gross domestic product (GDP).
"I don't think it's an easy task to reach agreement in merely two days on such a specific target, as this has to get a nod from many nations, rather than some individuals," said Huo Jianguo, director of the Ministry of Commerce's Chinese Academy of International Trade and Economic Cooperation.
"Such a proposal seems to be more in favor of the US itself and a few nations, instead of most emerging markets and export-oriented economies. It is not reasonable for the US to demand that others make concessions for its own economic benefits," Huo said.
Last year, the ratio of China's trade surplus to its GDP was 4 percent, and sources drafting the 12th Five-Year Plan (2011-2015) said China expects to limit the ratio to 5 percent; Kazinform cites China Daily.
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