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Foreign and Military Affairs

Chinese vice premier meets former Fed Chairman

(Xinhua)
Updated: 2010-11-08 20:36
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BEIJING - Chinese Vice Premier Wang Qishan met with Paul Volcker, chairman of US President Barack Obama's Economic Recovery Advisory Board, in Beijing Monday.

The two sides exchanged views on the current international economic and financial situation and Sino-US economic relations.

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The US Federal Reserve (Fed) said on Nov 3 it will conduct a second round of quantitative easing, which has been dubbed "QE2."

The Fed plans to purchase $600 billion worth of government bonds in a bid to revive the sluggish US economy.

Volcker, a former Fed chairman, said last week QE2 will lead to massive capital inflows into emerging markets and create asset bubble problems.

China maintains that the loose currency policy of the US will likely saddle China with imported inflation as "hot money" will flood its capital markets.

Volcker has repeatedly criticized the Fed's quantitative easing plans.