Report : Global financial crisis dampens growth prospect of developed economies

Written by Meenaa on Tuesday, November 18th, 2008

BEIJING, Nov. 17 (Xinhua) — Against the background of a slowing economy and increasing unemployment, the Chinese central bank worried that trade protectionism might have a negative impact on the development of a global economy.

“Anti-globalization, represented by all forms of trade protectionism is likely to exist for a long time”, especially if Doha Round global trade talks fail, said the report issued here Monday.

An official with the Chinese Ministry of Commerce also warned that many countries would carry out protective measures to support domestic economies in the face of the global financial crisis, which might revive trade protectionism.

At China’s Canton Fair, the country’s biggest trade show, Chinese candle makers worried their business might be affected by possible anti-dumping measures from Europe. Candle makers in Germany and Holland complained their interests were damaged by Chinese rivals.

As for domestic policy, the central bank said it would make sure the bank system has adequate liquidity and increase loans at a reasonable speed, said the report.

PBOC said it will encourage credit support for major construction projects, small and medium-sized companies, agriculture, post-quake reconstruction, education and employment, while continuing to limit loans to high-pollution and high-energy-consumption industries.