China challenges US global financial leadership

In his second rebuke of US leadership this past week, the central bank governor, Zhou Xiaochuan, said China’s rapid response to the downturn, including a $586 billion stimulus package, proved the superiority of its authoritarian, one-party political system.

The only major economy still growing at a fast clip, China is being unusually forthright in challenging the US-led global order ahead of an April 2 summit on the financial crisis.

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In his second rebuke of US leadership this past week, the central bank governor, Zhou Xiaochuan, said China’s rapid response to the downturn, including a $586 billion stimulus package, proved the superiority of its authoritarian, one-party political system.

“Facts speak volumes, and demonstrate that compared with other major economies, the Chinese government has taken prompt, decisive and effective policy measures, demonstrating its superior system advantage when it comes to making vital policy decisions,” Zhou said in remarks posted on the People’s Bank of China’s Website.

In the approach to the London summit of 20 leading economies, Zhou called on foreign governments to give their finance ministers and central bankers broad authority so that they can “act boldly and expeditiously without having to go through a lengthy or even painful approval process.”

China has made its agenda clear: It wants a stable US dollar, and has even advocated the creation of another global currency altogether. It is leery of protectionism. And it is demanding a larger say in how financial systems are regulated and rescued, while holding back on any promises for new rescue or stimulus measures of its own.