UPDATE 1-China hopes G20 to focus on global recovery

* China eyes G20 role in promoting global growth, reforms

* China says 2011 trade surplus “to be manageable”

* Tries to fend off foreign criticism on yuan

(Adds details, background)

By Kevin Yao

LISBON, Nov 7 (BestGrowthStock) – China hopes this week’s G20 summit
in Seoul will help promote recovery in the global economy and
deepen reforms of the world’s financial systems, Chinese
Commerce Minister Chen Deming said on Sunday.

“We hope the G20 can play a big role in promoting global
monetary reforms and governance, and help the global economy to
have strong, sustainable and balanced growth,” Chen told Reuters
during President Hu Jintao’s state visit to Portugal.

China’s trade surplus in 2011 “will be manageable” as the
country’s foreign trade still faces global uncertainties, Chen
said.

“I believe China’s foreign (Read more about foreign investment into China) trade will continue to grow next
year but the growth will not be very strong,” he added.

Chinese trade officials have forecast the trade surplus in
2010 could fall to $180 billion from $196 billion in 2009.

Concerns over global trade imbalances, largely China’s huge
trade surpluses with Western nations, and the threat of
“currency war” will top the agenda at the meeting of G20 leaders
on Nov. 11-12.

G20 countries will try to resolve at least some of their
differences over how best to reduce the imbalances that are
destabilising the world economy.

China has been trying to fend off foreign pressures on its
currency policy, arguing that the country has taken measures to
boost its imports to help reduce the trade surplus.

During President Hu Jintao’s recent visit to France, China
signed of around $20 billion worth of airline, petrochemicals
and nuclear fuel deals, including contracts to buy 102 Airbus
(EAD.PA: ) planes.

Chen said on Friday that Beijing was not deliberately
targeting a trade surplus and would welcome a more balanced
relationship, but Europe must play a role by ensuring its own
markets were open for Chinese investment.

Hu has given his support to President Nicholas Sarkozy’s
initiatives to reform the global financial system, but the pace
of changes should be gradual, Vice Foreign Minister Fu Ying told
Reuters on Saturday.

France, which takes up the G20 baton after the Seoul summit,
wants to build common ground for its ambitious agenda of
reforming the global monetary system, while avoiding alienating
China by harping on about the yuan.

China has won France’s understanding that the Chinese trade
surplus was mainly caused by structural factors rather than the
exchange rate, Fu said.

“We have gained common ground on the exchange rate issue.
China’s view is that every country should take responsibilities
in maintaining stable exchange rates,” she said.

(Reporting by Kevin Yao; Editing by Michael Roddy)

UPDATE 1-China hopes G20 to focus on global recovery