China: Resonable and orderly exit of stimulus policies needed

With signs the world economy is turning the corner, the question of how long large-scale economic stimulus measures should be maintained is becoming an issue. China says a reasonable and orderly exit is needed.

Economic figures in the world's major countries are starting to show positive signs. That led to the question of how to exit large-scale government stimulus packages becoming a hot topic at the G20 summit in Pittsburgh last month. All G20 member countries have pledged to maintain relatively loose fiscal and monetary policies to ensure their economies recover in the near future. It means that different countries may launch exit mechanisms at different times. Australia's central bank, for example, has already raised its interest rate.

China has issued a 4 trillion yuan stimulus package, helping its economy recover quickly. Despite some side effects such as real estate speculation and the risk of hot money, the country has pledged to maintain a proactive fiscal policy and relatively loose monetary policy. That's because the world economy remains weak and recovery needs to be consolidated. China is calling for coordinated economic action among nations.

The International Monetary Fund has also said cooperation needs to be strengthened when world leaders plan to end their stimulus measures. But the IMF has pointed out it's still too early to launch exit policies.