Indonesian analysts: China-U.S. summit expected to be helpful for global economy 2009-04-01 00:46:32   Print

    JAKARTA, March 31 (Xinhua) -- The upcoming meeting between Chinese President Hu Jintao and his U.S. counterpart Barack Obama on the sidelines of the G20 summit in London is expected to produce a positive impact on the world economy, Indonesian analysts told Xinhua on Tuesday.

    They said China and the United States will play the biggest roles in reviving the global economy. That is why the world's eyes will be focused on the meeting, they said.

    Currently, China has biggest foreign exchange reserves, while the United States is still the biggest economy in the world.

    Hendri Saparini, an economist at Indonesian research institute Econit Advisory Group, said in this current crisis, every country will first think about their own interests.

    "However, this is not a bad move. It will be good for the whole world if all countries can gain mutual benefits by stepping up bilateral ties," she said.

    For example, she said, China will demand the United States to keep opening its market for Chinese goods and the United States will persuade China to buy its bonds to finance the country's deficit.

    "This will be good for both of them and the world because they are giant influential countries," she said.

    Hendri also said Obama will stick to his statement about protectionism but he may adjust his comments due to the recession his country is facing.

    "When Obama talked about protectionism by saying 'buy American products,' China was worried. However, I think this statement would be adjusted into 'buy American and Chinese products'," she said, referring to the U.S. dependence on China's money for its bailout programs.

    Nina Sapti, an economist from the University of Indonesia, said the Hu-Obama meeting will be the best opportunity for China to increase its profile before the world's eyes.

    "You can imagine that. Right now China is the best economic performing country in the world with its sustainable growth. It has more than 1 trillion U.S. dollars in foreign reserves, and is the biggest debtor of the United States," she said.

    Nina added China could use the meeting to make RMB yuan one of the major currencies in the world and try to play a bigger role in the world institutions like the International Monetary Fund (IMF).

    Sofyan Wanandi, head of the Indonesian Employers Association (Apindo) said he was expecting the best results from the meeting.

    "Whatever the results, they will be good for the world," he said, referring to China's ambition to play a bigger role in the IMF.

    He said China and the United States will play significant roles to cure the global financial crisis.

    "And the most important thing is that the world heavily depends on China and East Asia to revive global economy," he said.

    Sri Adiningsih, an economist from the University of Gajah Mada, said she agreed with Sofyan's comment about the big roles of China and the United States in revitalizing the world economy.

    She said good cooperation will materialize as long as the two countries don't "attack" each other.

    "The United States shouldn't impose protectionism and China must not stop buying American bonds," she said.

    She added that the world depends on the two countries to improve the global financial system by regulating and supervising the trade of hedge fund, shares, and bonds.

Editor: Mu Xuequan
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