China to sustain pace of monetary reform: trade minister

* China to pursue easy monetary policy — trade minister

* Still many uncertainties in global economic recovery

By Bate Felix

BRUSSELS, May 21 (BestGrowthStock) – China will continue to ease
monetary policy moderately as many uncertainties remain about
the strength of the global economic recovery, China’s commerce
minister said on Friday.

“The world economy still has quite a lot of uncertainties
and therefore we believe it is still too early for us to talk
about an exit strategy from stimulus packages,” Chen Deming told
a news conference in Brussels.

Deming, who is in Brussels to attend an EU-China joint
committee meeting, said the Chinese government “would continue
to implement a proactive fiscal policy, while moderately easing
monetary policy as part of its macroeconomic policies”.

China has come under increasing pressure from Western
governments to allow the value of its yuan currency to rise,
with critics saying the pegged currency is undervalued and gives
Chinese exporters an unfair advantage.

“The currency issue is a sovereignty issue of a country and
China will continue to proceed towards the direction of its
reform,” Deming said through an interpreter.
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Deming said the value of the yuan had appreciated by 15
percent against the euro in recent months, including a 7 percent
gain in the past month. That, however, is largely due to euro
weakness.

The Commerce Ministry, as a staunch defender of Chinese
exporters, is at odds with the People’s Bank of China over
whether the government should abandon the yuan’s de facto peg to
the U.S. dollar.

“What has happened has actually further proved our judgment
of the current global economic situation. And that is to say
there are still uncertainties and a tough way ahead of us,”
Deming said.

Deming said China was closely watching the sovereign debt
crisis in Europe, adding that he hoped and believed measures
taken by the EU and the IMF would end the crisis as soon as
possible. China looked forward to a stable and strong euro, he
said.

Investing Basics

(Reporting by Bate Felix; Editing by Ruth Pitchford)

China to sustain pace of monetary reform: trade minister