10-09-2008, 04:55 AM
<b>China Cuts Rate to Protect Economy That's Now `Big Enchilada' </b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Japan is still a very big economic power, but China is the big enchilada on the field,'' said James Lilley, a former U.S. ambassador to Beijing. ``They really, in their own way, are joining the world financial community in dealing with a very severe crisis.''
China's move reflects how deeply the world's fourth-biggest economy has become integrated in the global financial system. While its gross domestic product expanded at 10.1 percent in the second quarter from a year earlier, its exports have been hit by a collapse in demand from the U.S. and Europe.
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>China's reduction shows increased anxiety about the impact of the credit crisis on its own economy. The CSI 300 Index of stocks fell 3.8 percent yesterday for a 62 percent slump this year</b>.
Premier Wen Jiabao said on Sept. 27 that his nation wants to participate in a global solution.
``All countries should take proactive measures'' to deal with the financial crisis, and prevent it from spreading, he said in a televised speech to a conference.
``We share the same interest and goal in facing this crisis,'' the People's Bank of China said a week later, after the U.S. approved a $700 billion rescue plan for its financial system. ``All countries should take the responsibility to cooperate.''
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. ``China is very worried about the safety of its assets.''</b>
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China's move reflects how deeply the world's fourth-biggest economy has become integrated in the global financial system. While its gross domestic product expanded at 10.1 percent in the second quarter from a year earlier, its exports have been hit by a collapse in demand from the U.S. and Europe.
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>China's reduction shows increased anxiety about the impact of the credit crisis on its own economy. The CSI 300 Index of stocks fell 3.8 percent yesterday for a 62 percent slump this year</b>.
Premier Wen Jiabao said on Sept. 27 that his nation wants to participate in a global solution.
``All countries should take proactive measures'' to deal with the financial crisis, and prevent it from spreading, he said in a televised speech to a conference.
``We share the same interest and goal in facing this crisis,'' the People's Bank of China said a week later, after the U.S. approved a $700 billion rescue plan for its financial system. ``All countries should take the responsibility to cooperate.''
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>China's huge holdings of U.S. debt means it must bear a large proportion of the ``burden of sorting things out'' in the U.S., Yu said. ``China is very worried about the safety of its assets.''</b>
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