China to keep closer watch on capital flows

25 Jun, 2008

China will increase efforts to check capital flows related to exports and imports to help the country fend off any attack by global speculators, a senior foreign exchange regulator said in remarks published on Tuesday.
International capital flows and the changing world economy after the US subprime crisis have increased difficulties for China, the official Financial News quoted Hu Xiaolian, chief of the State Administration of Foreign Exchange, as saying. "We are facing greater challenges in avoiding impacts from global short-term speculative capital and ensuring national economic and financial security," she said.
Visiting the trading centres of Dalian, Suzhou and Wuhan, Hu told local officials to check export- and import-related payments and increase controls on short-term foreign debts.

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