1In July 1997, a financial crisis broke out in Thailand, which affected Indonesia and South Korea in just a few months. Malaysia, the Philippines and other countries have also been hit by speculators many times, the exchange rate has depreciated sharply, and many financial institutions are facing bankruptcy. This crisis has caused huge losses and has had a strong impact on the economic and financial system in Asia and even the world.
With the International Monetary Fund as the core, the international community has provided huge financial support to crisis countries. As an important economic power in the region, China has actively explored ways to solve the crisis with some major international institutions and countries from the perspective of maintaining regional economic security and global financial stability, participated in the international community's rescue actions for crisis countries, and made positive contributions to alleviating the financial crisis with a highly responsible attitude.
I. Financial support
China fully understands the difficulties faced by crisis countries and pays close attention to the development of the crisis. At the request of the International Monetary Fund and recipient countries, China participated in the assistance to Thailand, Indonesia and South Korea. The government of China has promised to provide 654.38 billion US dollars of bilateral financial assistance to Thailand under the framework of the International Monetary Fund, and is considering supporting the IMF's financing plan for Indonesia and South Korea. In addition, China has allocated more than $2 billion to the "operational budget" of the International Monetary Fund to support the Fund in providing loans to crisis countries. The Government of China will continue to support the operational budget of the International Monetary Fund.
Second, economic policy.
During the crisis, China's attitude and policies attracted worldwide attention, and China's financial stability was crucial for the calm and final settlement of the crisis. In this regard, the China government has shown a highly responsible attitude, announcing that the RMB exchange rate will remain stable in the face of the sharp devaluation of currencies in many Asian countries and regions. This is of great significance to restoring market confidence in Asia, the greatest contribution to solving the financial crisis in East Asia, and the support for the stability of the global monetary system. This action has been widely praised internationally. At the same time, the China Government fully supports the efforts of the HKSAR Government to stabilize the Hong Kong dollar. State leaders have repeatedly stated that the central government will maintain Hong Kong's prosperity, stability and linked exchange rate system at all costs as long as the Hong Kong government requests it. With a sound financial system, sufficient foreign exchange reserves and good management, the Hong Kong Special Administrative Region has successfully maintained the stability of the exchange rate of the Hong Kong dollar.
The Asian financial crisis will inevitably bring some pressure to China's economy, especially in terms of exports and foreign capital inflows. Therefore, the China government has formulated a series of countermeasures to offset the negative impact of the East Asian financial crisis on China. These policies include: keeping the GDP growth rate of 1998 above 8%; Increase investment in agriculture, energy, transportation and housing; Actively and steadily promote the reform of state-owned enterprises; Carry out reforms aimed at improving the soundness of financial institutions and establishing a modern financial system; Implement the strategy of export diversification, adhere to the policy of utilizing foreign capital with the focus on attracting foreign direct investment, and realize the diversification of external financing channels.
Three. Attend international conferences and discuss countermeasures with them.
In order to find a solution to the crisis, senior officials of the China government attended many international conferences to discuss countermeasures. Senior officials from the Ministry of Finance of China and the People's Bank of China led delegations to attend Tokyo Conference, Manila Conference, ASEAN +6 Conference and 22-party talks attended by financial officials from Europe, America, Asia-Pacific and other countries and regions. Through these meetings, the international community extensively exchanged views on how to help countries in crisis, prevent the crisis from worsening, and strengthen the security of the global financial system, and formed many valuable opinions. The Government of China has actively participated in the formulation and follow-up of the Manila Framework Agreement.
Fourth, strengthen financial cooperation with Southeast Asian countries.
China has always advocated and actively promoted the strengthening of financial and economic cooperation in Asia, and promoted financial stability and common development in the region by deepening exchanges and coordination among central banks and economic and trade relations among countries. China has signed bilateral repurchase agreements with Malaysia, Hong Kong, Indonesia, the Philippines, South Korea, Thailand, Singapore and other countries and regions, and actively participated in and promoted economic and financial affairs in the region through institutions and forums such as the Asian Development Bank, Electronic MEAP and APEC.