ID :
188337
Tue, 06/14/2011 - 06:56
Auther :

WEF PARTICIPANTS VOICE CONCERN OVER FUTURE CHINA-US TIES

By Ahmad Fuad Yahya

JAKARTA, June 14 (Bernama) -- China's role in the context of regional economic growth and concerns over the possibility of tension in future US-China relations have become a focus of the World Economic Forum (WEF) on East Asia here.

Deputy International Trade and Industry Minister Mukhriz Mahathir said Malaysia viewed this possibility with concern because it would adversely affect the country's economy which largely relies on trade particularly with the major economies.

"We are concerned because its relationship with the ringgit against the US dollar. A depreciation of the dollar may be due directly to US debts which have reached 100 per cent of its GDP also becomes a burden to China.

"What is also worrying is the US Congress currently discussing the
possibility of that country not being able to settle its debts," he said when met at the end of the three day forum.

Mukhriz said if the US government decided not repay it debts, it would surely affect the confidence of the global financial industry because US bonds had very high ratings.

Some forum participants also raised the issue of moral values amidst China's transformation from communism to capitalism according to its own mould.

Mukhriz said that although China was becoming more liberal, he hoped it would not go to the extent of becoming a free market in determining the direction of its economy.

The role of governments was still required to balance the situation by implementing appropriate policies for economic growth in addition to continuing with the development agenda like what Malaysia was doing, he said.

"For Malaysia, I believe, while we look at China as a big market and enjoy a positive trade balance with China, we should at the same time not neglect western technologies especially from the US which continue to create sources of wealth and income based on innovation," he said.

The deputy minister said the forum also gave attention to the role of women who make up 50 per cent of the world population and their rising influence in the world economy.

Another issue raised during the discussion was the overuse of natural resources.
-- BERNAMA


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