Chinese Premier urges G20 policy coordination

SHANGHAI -- Chinese Premier Li Keqiang on Friday called for closer macroeconomic policy coordination among G20 members against global economic headwinds.

"When formulating macroeconomic policies, G20 members need to keep in mind not just their own growth. They also need to look after the spillover effects of their policies," said Li in a video message to the G20 Finance Ministers and Central Bank Governors Meeting that opened Friday in Shanghai.

"We need to increase communication and coordination, and work together to secure the stability of the international financial market," said the premier.

Quantitative easing will hardly remove structural obstacles to growth and instead it may lead to more negative externalities, he said.

"Our focus should rather remain on structural reforms. What is desirable is innovation, deregulation, more competition, and greater openness," said Li.

The premier also said global economic and financial governance should be improved.

"We hope G20 members will continue to advance reforms in international financial institutions, improve the global monetary system, and deepen cross-border taxation cooperation," said Li.