You’d think that with the current slowdown in Asia having such a profound effect on the global economy the main players in the eastern continent would be pulling together. Apparently not.
Despite the International Monetary Fund slashing the global economic outlook, the latest reports have indicated that the governor of the People’s Bank of China has pulled out of an instrumental meeting because it is to be held in neighbouring Japan – along with China’s four state-owned banks.
The reason for Zhou Xiachuan’s absence from the IMF and World Bank gatherings, at which he was due to speak, is believed to be the territorial dispute which instigated rioting last month. It is thought that Chinese Finance Minister Xie Xuren may also skip the meetings with Vice-Minister Zhu Guangyao taking his place.
Both China and Japan claim to have rights of ownership over a group of islands in the South China Sea. Although this has been a cause of tension for years, after the latter nation claimed to have purchased the islands an already tenuous situation was exacerbated. The dispute has damaged trade and political relations between the two countries with dramatic drops in exports and tourism. Japanese carmakers in particular have recorded an up to 49 per cent decrease in sales to China. The protests even led to several Japanese companies suspending their operations in China for short term periods.
A spokesman for the IMF was quoted as saying; ‘We were informed two days ago that Governor Zhou’s schedule might require him to cancel his lecture in Tokyo. It has now been confirmed that his deputy Yi Gang will represent him at the IMF-World Bank annual meetings and will deliver his Per Jacobsson lecture’.
According to reliable sources Japan commented on the situation as ‘regrettable’.
As of 13.40:
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