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G-20 to focus on Chinese economy

JIJI

The Group of 20 finance ministers and central bank chiefs are expected to focus on developments in the Chinese economy at their upcoming meeting, Takatoshi Kato, president of the Japan Center for International Finance, said in a recent interview.

At the two-day gathering in Washington, which begins Thursday, the top finance officials from the 20 advanced and emerging economies are expected to focus on the future course of the global economy and the growth policies of member economies.

The Chinese economy is likely to attract particularly high interest from the G-20 officials due to its strong influence over other emerging economies, Kato said.

Reflecting growing expectations for China’s pump-priming measures, the country will also be asked about how it will tackle its bad-loan problem, he said.

The G-20 meetings have been held to enhance fiscal cooperation among members to restore the health of the global economy following the collapse of Lehman Brothers in September 2008.

But Kato pointed out that the upcoming meeting will have an additional facet with regard to the issue between Russia and Ukraine.

The G-20 is facing a new challenge of how to deal with security-related issues now that Japan, the United States and Europe have imposed sanctions against Russia’s annexation of Ukraine’s Crimean Peninsula, the former vice finance minister for international affairs said.

The International Monetary Fund has already agreed to offer financial assistance to Ukraine, but the G-20 economies need to listen to opinions from not only finance ministers but security experts, he noted.