July 11, 2013 / 7:11 PM / 7 years ago

China urges U.S. to weigh global impact when exiting QE

Chinese Minister of Finance Lou Jiwei smiles before the G20 finance ministers and central bank governors family photo during 2013 Spring Meeting of the International Monetary Fund and World Bank in Washington, April 19, 2013. REUTERS/Yuri Gripas

WASHINGTON (Reuters) - China supports U.S. plans to end its loose monetary policy as conditions permit, but urges Washington to weigh the impact on the global economy of its exit from so-called quantitative easing, Finance Minister Lou Jiwei said on Thursday.

Lou told reporters on the sidelines of annual U.S.-China economic talks that “sooner or later,” Washington will exit QE, and China does not take a position on the timing.

“The monetary policy of he United States does not exert impact only on itself, but has a spillover effect on the global economy,” he said, adding that developing countries could suffer volatility when the U.S. Federal Reserve stops boosting liquidity through bond purchases.

Reporting by Paul Eckert

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