China PM calls for greater regulation of global financial markets

China PM calls for greater regulation of global financial markets

[JURIST] Chinese Prime Minister Wen Jiabao [JURIST news archive] called for greater regulation of global financial markets [speech, text] Saturday at the closing of the Seventh Asia-Europe Meeting (ASEM 7) [conference website] in Beijing, China. ASEM 7 is the seventh annual inter-regional meeting [ASEM backgrounder] between the heads of state of various Asian and European states, designed to encourage closer cooperation between Asian and European states concerning political, economic, and social issues. This year's meeting focused on sustainable development, culminating in the Beijing Declaration on Sustainable Development [text, PDF], which outlines approaches for sustainable development with respect to rising commodity prices, climate change, energy security, and social cohesion. In his speech, Wen called for increased financial regulation in order to protect development throughout the world in light of the recent global financial crisis, saying:

We should draw serious lessons from the financial crisis and properly handle three relationships. First, the relationship between financial innovation and regulation. We should advance financial innovation in a steady manner according to needs and possibilities and at the same time strengthen financial regulation. Second, the relationship between virtual and real economy. We should always place importance on the development of real economy and put the economy on a solid and reliable basis. In addition, we should coordinate virtual economy with real economy and enable the former to better serve the latter. Third, the relationship between savings and consumption. We should see to it that consumption and savings are well-coordinated.

AP has more. The Washington Post has additional coverage.

Earlier this month, the US House of Representatives passed a $700 billion financial rescue bill [JURIST report] in an attempt to limit the effects of the crisis on the larger US economy and international markets. The UK and other European governments [JURIST report] have since approved their own rescue packages, involving combinations of nationalization and backup funding for threatened banks.