By V. Phani Kumar
Wednesday, October 27, 2010
HONG KONG (MarketWatch) -- China and the U.S. have the basis for a pact setting specific targets to cut their trade imbalance at next month's Group of 20 nations summit, according to a senior adviser to the Chinese central bank quoted in a Financial Times report Wednesday. "China should not be afraid of numerical targets for reducing its trade surplus," said Li Daokui, a member of the People's Bank of China's monetary policy committee, according to the report. "China is well positioned politically and economically to make this adjustment." Li's comment came after PBOC Deputy Gov. Yi Gang was quoted as saying in media reports earlier this month that China planned to cut its current-account surplus to 4% of its gross domestic product in the next three to five years. In 2009, China's current-account surplus fell to 5.8% of its GDP, down from 9.4% in 2008, as the nation's exports fell and on strong imports.