US, China won`t slow government spending `too soon`
Washington: The US and China agreed to maintain aggressive measures to stimulate their economies until a global recovery takes hold, US officials said after talks with their Chinese counterparts Monday.
Both countries have launched massive stimulus packages to keep their economies afloat during the global recession, and each was "grappling with the timing of the withdrawal", said David Lovinger, the US Treasury Department`s senior coordinator for China affairs.
Lovinger told reporters that both sides agreed they should not cut spending "too soon", risking another dip just as the economy is recovering.
But neither government wants to wait too long to apply the brakes: "They have to take place at the right time and not let another set of imbalances, bubbles build up," Lovinger said.
Top US and Chinese officials began a two-day gathering Monday in Washington, focusing primarily on the state of the global economy and confronting climate change.
Top of the US list of concerns is pushing China to speed the restructuring of its economy spur its own consumer spending and move away from over reliance on export earnings. Lovinger said there was "notable agreement that the world has changed".
"If China`s gonna grow, it`s not gonna be able to grow by exporting to the United States and as far as we can tell to the rest of the world," he said. "China`s gonna have to promote more home-grown, consumption led growth."
More from India
More from World
More from Sports
More from Entertaiment
- Sheena murder: Trio to be taken to Raigad to re-construct crime scene
- Mikhail emailed sister Sheena Bora's resignation letter: Report
- Raksha Bandhan: Sushma Swaraj ties Rakhi to Venkaiah Naidu
- DNA: 1965 Indo-Pak war- Analysis of India's victory and exposing Pakistan's lies
- Shiv Sena announces award of 2 lakh for Hindu families with 5 kids
- Indrani's ex-husband Sanjeev Khanna confesses to police he was involved in Sheena's murder
- Women's hockey team seals Olympic spot after 36 years, creates history on Dhyan Chand's birthday
- Dawood, Hafiz Saeed to be in fix as US, India may join hands to nab them
- Sushma Swaraj ties rakhi to M Venkaiah Naidu
- Indrani Mukerjea's son Mikhail emailed Sheena Bora's resignation letter