Rather than simply surging ahead of the rest of the world, in this view, Beijing’s policies are actively holding back other developing countries and jeopardizing wealthier competitors. China’s $3-trillion pile of currency reserves, its unwillingness to purchase imports and especially its artificially low currency-exchange rate have sent much of the rest of the world spiralling into instability, in this view.
“That can’t go on too long,” French Finance Minister Christine Lagarde, the host of the summit, said of China. “As is often the case with big imbalances, a system collapses.”
China’s growth, propelled by its cheap currency, is overheating dangerously and restricting the ability of other countries to compete and grow, Bank of Canada governor Mark Carney warned in an interview.
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