core sector communique

IMF Managing Director Ends China Visit, Meets Top Chinese Leadership  

November 10, 2011

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today in Beijing:  

“I would like to express my deep appreciation to the Chinese authorities for welcoming me during my first visit to China as Managing Director of the IMF.

“I have had the privilege to meet with Premier Wen Jiabao, Vice President Xi Jinping, and Vice Premier Wang Qishan. I have also had a productive exchange of views with the People’s Bank of China Governor Zhou Xiaochuan.

“We discussed key challenges facing the global economy, the Euro Zone in particular, and their implications for China and the Asia region. We agreed on the importance of strengthened international policy cooperation and decisive collective action to ensure strong, sustainable and balanced global growth.

“We noted the growing interconnectedness of countries in today's global economy. As the world’s second largest economy, China plays a crucial role in helping to promote global economic recovery through trade, investment, and financing.

“China is on the right path in reducing domestic vulnerabilities by moderating the pace of credit growth, increasing provisioning and capital, and expanding the scope of macroprudential policies. Fiscal policy is also appropriately moving back gradually to balance.

“China is also on the right path in terms of reorienting the economy towards domestic consumption and in seeking more inclusive growth for its people, as laid out in the 12th five-year plan. In this regard, reform of the financial system continues to be important. This integrated package of policies, including continued strengthening of the renminbi, would have a positive effect for China and the global economy.

“We discussed China's leading role as part of the G20. China also plays a major role at the IMF and is in our top three shareholders. China is a very important member and valued partner of the Fund and I greatly appreciate the strong, close and cordial relationship we enjoy with the Chinese authorities. We had the opportunity to discuss how we might strengthen this even further in the future.

“Finally, during my visit, I was invited to address the Annual Conference of the International Finance Forum in Beijing where I met with Chinese provincial leaders, private sector executives, academics and think tank representatives.

“Again, it was my great pleasure to return to China and I would like to thank the Chinese people for their gracious hospitality.”