Joint Statement between the People's Republic of China and the United Kingdom of Great Britain and Northern Irelandon Strengthening Cooperation, and Actively Dealing With The International Financial Crisis
I. H.E. Wen Jiabao, Premier of the State Council of the People's Republic of China, and the Rt. Hon. Gordon Brown MP, Prime Minister of the United Kingdom of Great Britain and Northern Ireland, held talks in London during Premier Wen's official visit to the UK from 31 January to 2 February 2009.
II. Both sides welcome the strength of the relationship between our countries and agree that, as two of the world's leading economies, the UK and China are crucial players in addressing the current unstable economic climate. We reaffirm our determination to develop still further our comprehensive strategic partnership, based on the principles of mutual respect, equality and mutual benefit, in order to support domestic economic growth, prosperity and stability, to tackle the international challenges we face, to foster a global recovery from the current economic crisis, and to pursue sustainable and harmonious development.
III. Both sides also agree that, against a complicated global political and economic backdrop, maintaining the steady development of the relationship between the EU and China is essential. We agree to make concerted efforts to promote the comprehensive strategic partnership between the EU and China.
IV. Both sides agree that the global economy has been buffeted by a series of major financial shocks, unprecedented in scale and scope, that have now developed into the worst global economic crisis for generations. This is a truly global crisis that can only be effectively resolved through global cooperation. We reaffirm our commitment to implement the declaration of the Summit on Financial Markets and World Economy held in Washington D.C. The forthcoming London Summit provides a vital opportunity that the world must seize. We discussed how we will work, together with other world Leaders, towards ensuring the Summit delivers the outcomes necessary to stabilise the world economy, preserve openness, and set the course for a sustainable recovery, securing growth and jobs domestically and globally.
V. Both sides reaffirm our commitment to take necessary policy actions to foster sustainable international growth, and provide jobs. We agree that the magnitude of the crisis warrants an effective and coordinated macroeconomic policy response from countries to rebuild global confidence, limit the extent of the downturn and to establish a firm foundation for recovery. We discussed the UK and Chinese fiscal stimulus packages, sharing experience of actions taken in both countries to stimulate demand.
VI. Both sides agree to continue close cooperation on improving the regulation, transparency, and integrity of financial markets, with a view to strengthening the healthy functioning of the financial system and safeguarding stability. Both sides support the decisive actions taken by many countries to restore functioning financial markets, so that funding is available for investment globally.
VII. Both sides are greatly concerned by the outlook for global trade and investment and re-confirm our commitment to open markets and free trade. We agree that narrow short-term protectionist policies, through trade and investment barriers or competitive currency devaluations would only serve to deepen the global recession. We are committed to the early, comprehensive and balanced resolution of the Doha development round of trade negotiations. Both sides recognize the constructive role that sovereign wealth funds can play in stabilizing the world economy, and boosting global demand. The UK and China remain committed to open markets for investments, including those from Sovereign Wealth Funds.
VIII. Both sides share a vision for more effective, representative and credible international financial institutions that can best work with the international community to deliver a strong and stable global economy and increased global prosperity. They must have appropriate lending instruments and sufficient funds to respond to the current crisis and downturn as well as laying the foundations for sustainable future prosperity. Emerging and developing economies should have greater voice and representation in these institutions.
IX. Both sides agree that the world needs effective multilateral surveillance and early warning mechanisms to help guard against future crises and support those countries who have lost access to international capital markets. To address this need, we agree today to press the IMF to continue to reform its instruments so that they can best meet the needs of member countries. We support expanding the resources of the IMF so that it has sufficient funds to extend these facilities more widely.
X. Both sides recognize the urgent need to take practical measures to minimize the grave impact of the financial crisis on developing countries. We urge the Multilateral Development Banks to adjust their rules to deliver more, faster and better funding, and encourage Regional Development Banks to significantly increase lending. Both sides emphasised the importance of strengthening international institutions to help mitigate the risks to developing countries and to ensure continued progress towards achieving the Millennium Development Goals.
XI. Both sides believe that the international community should work together to conduct effective and comprehensive reform of the international financial system, working on the basis of full consultation among all stakeholders. In recognition of the increased global presence of emerging and developing countries, both sides agree to build on the quota and governance reforms, including reforms on the voting mechanism, that were agreed at the World Bank and IMF in 2008. We will work to further strengthen and reform both organizations’ legitimacy, ensuring that their governance structures are more transparent and representative and that they provide greater accountability. The greater involvement of leading emerging economies in international financial bodies will be crucial for their ultimate success.
XII. Both sides reiterated that the Financial Stability Forum (FSF) should implement the conclusions of the Washington Summit to urgently expand to a broader membership of emerging economies, including China, before the London Summit.
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XIII. The current economic difficulties make it even more important that both sides are committed to support two-way trade and investment between the two countries. Scientific, technological and innovation cooperation is vital for joint efforts to address the financial crisis. The two sides agree to strengthen tourism cooperation and people-to-people exchanges. We reaffirm our commitment to address the challenge of climate change and will further strengthen dialogue and concrete cooperative actions in this area.
XIV. One important vehicle for this co-operation is the new High Level Economic and Financial Dialogue between the Chancellor, Alistair Darling and Vice Premier Wang Qishan. The two sides agreed to hold the second round of this High Level Dialogue at a mutually agreed time in 2009, and will continue to make full use of this mechanism to strengthen cooperation on a wide range of economic and financial policies, critical to financial stability and sustainable economic development worldwide.