India, China should coordinate to meet financial crisis: envoy

Manash Pratim Bhuyan

New Delhi, Nov 14 (PTI) On the eve of the G-20 meeting in
Washington, China Friday pitched for closer coordination and
cooperation with India in the economic field at the global
fora as well as bilaterally to meet the challenge posed by the
current financial meltdown.

Noting that both China and India are "growing economic
powers", Chinese Ambassador Zhang Yan said the two countries
should join hands to push for reform of the global financial
bodies like International Monetary Fund (I.M.F.) and World
Bank, which is required in view of the financial crisis.

"I think China and India can do a lot. I think the
forthcoming G-20 summit will be a good occasion for China and
India to work together to influence reform of international
economic and financial systems and also make our contribution
to change the situation and to prevent the crisis go further,"
Zhang told PTI here.

The comments assume significance as these came a day
ahead of the meeting of world leaders, including Prime
Minister Manmohan Singh, in Washington to discuss the worst
financial crisis and ways to deal with it.

Pointing out that the current meltdown had not affected
China and India to much extent, Zhang said the countries
should "work more closely" to avert the effects of the
gradually spreading global financial crisis.

"Bilaterally we should explore more opportunities for our
development and to utilise each others potential for benefits
of mutual economic development," he said.

Zhang said both the countries should work together to
stimulate economic activities in both the countries.

"India and China should work together to utilise our own
potential and resources to stimulate our economic development
and by doing so we can reduce the negative effects and
maintain stable and sustained growth of our economy," Zhang
said.

"Fortunately due to the cautious and wise economic and
financial policy of our two countries, the financial crisis
originated in Western countries, especially the U.S., seems
having less effects on our financial systems but we have to be
careful because the native effect is pending," the Chinese
envoy said.

Ahead of the Summit, the Prime Minister emphasised that
India and other developing countries have a stake in the
financial crisis and hence should be involved in the
international financial management.

India will propose common global prudential and
regulatory standards for financial institutions at the Summit
and is expected to bluntly tell the West reeling under the
economic crisis not to get into a "protectionist cocoon" and
instead encourage free flow of goods, services and capital.

"India and China are growing economic powers and should
work closer to reduce the effects and at the same time
participate actively in the international forum to push for
the reform of the existing international economic and
financial systems," Zhang said.

He said the global financial systems should be directed
in a way which will "reflect the reality of the world economic
and financial situation and also the strengths of those powers
like China and India and to strengthen their role in
international finance and economic field." PTI MPB
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