China will cut spending on business travel, vehicles, and entertainment this year by 1.6 percent to 7.97 billion yuan ($1.29 billion) to crack down on wasteful expenditure, the Ministry of Finance said today.
Agustin Carstens, Mexico’s central bank chief, used a trip to China to call on emerging-market countries to rally behind his bid to become the first non- European to lead the International Monetary Fund.
China began installing a new economic leadership by indicating that central bank Governor Zhou Xiaochuan will step aside and Vice Premier Wang Qishan, the top finance official, will move to a new role.
A decision by the Chinese central bank chief and finance minister not to attend International Monetary Fund meetings in Tokyo this week is “regrettable,” Japan’s finance minister said, as tensions lingered over an island dispute.
U.S. and China must focus on global economic stability which is at risk because of the European debt crisis in their Strategic and Economic Dialogue, Xie Xuren , China’s finance minister wrote in a opinion piece in the Washington Post yesterday.
Regional Chinese governments increasingly use “illegal and irregular” methods to fund their work, the Finance Ministry said, drawing attention to the challenges China faces in tackling $1.7 trillion in local debt.
China will probably see little slowdown in growth this year even as its government needs to overhaul its economy to manage expansion over the next two decades, World Bank President Robert Zoellick said.