U.S. backs Chinese push for greater say in global finance

The leader of China’s central bank said Tuesday he had secured U.S. support to give emerging economies — including China’s — a “greater voice and representation” on the international financial scene.

Zhou Xiaochuan, governor of the People’s Bank of China, added that tU.S. officials have promised to support “qualified candidates from China being given full consideration” to assume high-level positions with international financial institutions (IFIs) such as the World Bank, International Monetary Fund and other global economic bodies.

Mr. Zhou made his remarks during a break in high-level economic talks in Washington between top U.S. and Chinese officials.

Treasury Secretary Timothy F. Geithner said earlier Tuesday that strengthening the economies of developing countries was vital to securing global financial stability and avoiding a repeat of the recent near-meltdown of international credit markets.

“Today, we will discuss governance reforms to help the IFIs be more representative of dynamic emerging economies, such as China, as well as strengthen their capacity to prevent future crises,” he said.

Mr. Geithner said the two sides also would be discussing ways to improve the workings of the World Bank, International Monetary Fund and other global organizations.

On China’s part, Mr. Zhou said his country has vowed to implement reforms to stabilize its financial markets, which Western governments say lack sufficient regulation and transparency.

The central banker said China is “committed to reform and opening up, and promoting market development, which are essential for building a robust financial system.”

Mr. Geithner also said Tuesday he wanted a more open trading system with China.

The skyrocketing U.S. trade deficit with China has been blamed on the low value of the Asian giant’s currency, which many Western economists say is artificially undervalued to boost Chinese exports.

“We will discuss additional measures that our two countries can take to support an open trading system, discourage protectionist policies and to take advantage of what trade and investment have to offer,” Mr. Geithner said.

The two-day economic and strategic summit wraps up Tuesday afternoon with talks on trade and investment.