(Adds comments by officials)
SEOUL Nov 11 China said on Thursday that the
U.S. Federal Reserve's move to ease monetary policy risked
undermining the global economic recovery, adding that Washington
"should not force others to take medicine for its own disease".
A senior Chinese central bank official told reporters at the
G20 summit in Seoul that the Fed's move had caused "strong
concern" around the globe, and major reserve countries ought to
factor in the global impact of their policies.
(For full G20 coverage, click on [nN09105095])
Zhang Tao, director of the international department of
People's Bank of China, also warned that disorderly capital
inflows resulting from the Fed's action could hurt emerging
"For emerging countries, capital inflows may lead to
significant increase in asset prices and foreign exchange
reserves, and many ocuntries are concerned about that," he said.
"Doubtlessly, disordered international capital inflows will
make emerging countries very vunerable. As emerging countries are
important for the global economic recovery, that will greatly
increase the downward risks in the world economy."
Referring to an idea floated by Washington for numerical
targets to be set for trade imbalances among G20 countries, a
Chinese Foreign Ministry also told reporters that it was "not
realistic" to have a current account target that fits all.
A Foreign Ministry spokesman added that Chinese President Hu
Jinatao, discussing Washington's wish to see a sharp revaluation
of the yuan, had told U.S. President Barack Obama earlier that
reform of the currency would have to be gradual.
(Reporting by Zhou Xin; Writing by John Chalmers)