G20's deference for China's economic policies irks Japan
Source: Reuters
China dodged criticism of its economic management at a G20 meeting it hosted on the weekend, even winning plaudits for yuan transparency, much to the frustration of Japanese officials who are calling for more reforms from Beijing.
It was a marked contrast to a February G20 gathering of finance heads in Shanghai, when Chinese policymakers were on the defensive about the risk of another devaluation of the yuan.
While the world's second-largest economy has slowed and the yuan has fallen to 5-1/2 year lows against the dollar over the past five months, G20 finance ministers and central bank chiefs appeared more concerned about the fallout from Britain's June vote to leave Europe.
"We have been very polite with China," said a European official at the meeting in the southwestern Chinese city of Chengdu, adding Tokyo failed to keep its concerns about China's economic performance - a major risk for Japan - on the table.
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"China's growth problems and exchange rate decline have not been much of an issue here. Japan with its concerns has been left a bit alone, no one wanted to join in," the official said.
Japan has already failed this year to win support from its industrialized peers to curtail a strengthening yen, which has soared to 2-1/2 year highs against the dollar even as the economy faltered and exports fell.
"Japan remains concerned about China's economy and we will call on the U.S. and Europe not to shift attention away from China," a Japanese official said, but added that Tokyo had decided to "be quiet" on currency during the meeting.