China criticises US dollar

City A.M. Reporter
CHINESE President Hu Jintao yesterday called the US-dollar-dominated international currency system a “product of the past”.

He added that it would be a “fairly long process” to make China’s own currency an international one.

He also said “the liquidity of the US dollar should be kept at a reasonable and stable level”. China has argued that the Federal Reserve’s November decision to buy $600bn (£378m) in US government bonds would undermine the greenback’s value and lead to competitive currency devaluations by other countries. China is the largest holder of US debt.

The Chinese president responded to complaints that China does not always treat foreign companies registered in China fairly. “Their innovation, production and business operations in China enjoy the same treatment as Chinese enterprises,” he said.