Protectionism threatens global recovery

Chinese central bank official warned that rising trade and investment protectionism is one of the major threats to the economic recovery.

A top Chinese central bank official warned Sunday that rising trade and investment protectionism remains one of the major threats to the global economic recovery.

"We have noticed that major risks threatening (the) global economic recovery still remain," Li Dongrong, an assistant governor of the People's Bank of China, said in a speech at Kuwait Financial Forum.

These included "rising trade and investment protectionism, prolonged dysfunction of the financial system and inadequate coordination in macro-economic policies," he said.

Dongrong stressed the most pressing task of the international community was to "strengthen global cooperation, prevent protectionism of all kinds and support stabilisation of financial markets and economic growth."

"China, as always, will cooperate closely with the various parties to establish a new world financial order that is fair, just and inclusive," he said.

Dongrong said despite recent positive indicators pointing to a global economic recovery, it was "not yet solid due to multiple uncertainties at home and abroad.

"We will continue to implement an active fiscal policy and relatively loose monetary policy and improve the stimulus package to incorporate short-term policy measures into long-term restructuring efforts," he said.