JOINT STATEMENT THE FOURTH INDIA-CHINA FINANCIAL DIALOGUE BEIJING, 2ND SEPTEMBER, 2010
In accordance with the MoU on the Launch of the Financial Dialogue between the Republic of India and the People’s Republic of China, signed during Chinese Prime Minister Wen Jiabao’s visit to India in April 2005, the two sides have since successfully held three Financial Dialogues in April 2006, December 2007 and January 2009, respectively. The Fourth India-China Financial Dialogue was held on 2nd September, 2010, in Beijing.
MACROECONOMIC SITUATION AND POLICY RESPONSES
The two sides recognized that the global economy is gradually recovering with concerted efforts by the international community, but the foundations for recovery are not yet firmly established, and there are still many uncertainties down the road. At present, both sides are closely watching the developments of the global economy.
The Asian economies continue to recover robustly, with resurging imports and exports, rapidly increasing fixed asset investments, and rising consumer expenditure. However, some Asian economies have exhibited signs of overheating and inflationary pressure. The monetary policies of those economies have gradually shifted from unconventional policies in addressing the global financial crisis, to conventional policies. The two sides acknowledged the necessity and merits of those policy adjustments, but showed concern over possible capital flow disorders resulting from the monetary policy adjustments, which may lead to market fluctuation and financial risks.
Both sides agreed that it remains an arduous task to ensure a robust global economic recovery, which requires continued efforts of the international community. In this context, it is of great significance to maintain the stability and continuity of macroeconomic policies, and to ensure adequate policy support, for the consolidation of the momentum of the world economic recovery. Meanwhile, maintaining relative stability of major reserve currencies and fiscal sustainability are also very important to achieve strong, sustainable and balanced growth of the global economy.
BILATERAL ECONOMIC COOPERATION
The two sides recognized that the bilateral economic cooperation enjoys great potential and broad prospects. Faced with the severe impact of the international financial crisis, both sides should promote bilateral economic and trade cooperation on the principle of long-term perspective, mutual benefits and win-win outcomes. Both sides agreed to properly address the problems in economic cooperation, and facilitate trade and investment between Chinese and Indian businesses. Both sides will further strengthen coordination in the WTO Doha Development Round negotiations, and jointly promote the Round, consistent with its mandate, to achieve a comprehensive and balanced conclusion as soon as possible. Meanwhile, both sides will strengthen exchange of development experience and economic cooperation in general, and enhance experience sharing and practical cooperation in infrastructure financing in particular. The two sides will work towards the early implementation of the tariff concession commitments under the Asia-Pacific Trade Agreement (APTA) reached by all parties so far, and jointly push for new outcomes of the APTA.
FINANCIAL STABILITY AND DEVELOPMENT
Both sides highlighted that a sound, robust and highly efficient financial system contributes to the healthy development of economy. Further financial reform, higher prudential standards and vigorous market discipline are conductive to keep the financial system sound and promote a steady economic growth. To build a modern financial system with a sound structure, comprehensive functions, high efficiency and vigor, explore ways of developing financial inclusion and vigorously promote financial products and services innovation will provide strong support for the expansion of domestic demand and transformation of development patterns. The two sides agreed to strengthen communication and collaboration in various bilateral and multilateral economic and financial forums, and work together with the international community to ensure a fair and effective global financial regulatory system taking account of specific national circumstances of each country.
G20 PROCESS
Both sides agreed that G20 is the premier platform for international economic cooperation, and the voice and influence of developing members should be further enhanced. India and China will work together with other parties to actively follow up on the outcomes of the previous four G20 Summits, work for new progress of the agenda of the Seoul Summit scheduled for November 2010, complete the IMF quota reform by the Seoul Summit, and ensure the G20 mutual assessment process and policy dialogue proceed towards a more just and sound direction.
CLIMATE CHANGE FINANCE
Both sides looked forward to positive progress of the 16th Conference of the Parties (COP16) in Cancun and expect the Conference make effective mechanism arrangements to reflect common but differentiated responsibilities in addressing the challenge of climate change, and ensure developed countries fulfill their commitments of providing fund, technology and capacity building assistance to developing countries. Developed countries should expeditiously fulfill their commitments of providing 30 billion dollars of fast-track fund within agreed period of time from 2010 to 2012 and make effective fund arrangements for the long-term funding goals.
DEVELOPMENT COOPERATION
On the development issue, both sides called for more concrete actions of the international community to secure development resources and foster development cooperation. India and China will further strengthen their coordination in the World Bank, the Asian Development Bank and other multilateral development institutions, in order to make those institutions play a more constructive role in the field of development assistance. Both sides expected that the UN Millennium Development Goals (MDG) High Level Plenary, to be held in September 2010 will make concrete and effective policy recommendations to contribute to the achievement of MDGs by 2015.
For the Government of the Republic of India
For the Government of the People’s Republic of China