Russia, China: Global recovery weakening
At Asian-Pacific summit in Vladivostok, Russia turns its attention to Asia to spur its trade prospects. China's Hu promises $157 billion domestic stimulus.
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Chinese President Hu Jintao said Beijing would do all it could to strengthen the 21-member Asia-Pacific Economic Cooperation (APEC) and boost prospects of a global recovery by rebalancing its economy,Asia's biggest.
Russian President Vladimir Putin said trade barriers must be smashed down. He is hosting the event on a small island linked to the Pacific port of Vladivostok by a spectacular new bridge, a symbol of Moscow's pivotal turn to Asia away from debt-stricken Europe.
"It's important to build bridges, not walls. We must continue striving for greater integration," Putin told APEC leaders seated at a round table in a room with a view of the $1 billion cable-stayed bridge, the largest of its kind.
"The global economic recovery is faltering. We can overcome the negative trends only by increasing the volume of trade in goods and services and enhancing the flow of capital."
China's Hu told business leaders before the summit the world economy was being hampered by "destabilising factors and uncertainties" and the crisis that hit in 2008-09 was far from over. Beijing would play its role, he said, in strengthening the recovery.
"We will work to maintain the balance between keeping steady and robust growth, adjusting the economic structure and managing inflation expectations," he said.
Hu spelled out plans for China, whose economic growth has slowed as Europe's debt crisis worsened, to pump $157 billion into infrastructure investments in agriculture, energy, railways and roads. Hu, who steps down as China's leader in the autumn after a Communist Party congress, promised continuity and stability for the economy.
Putin, who has just begun a new six-year term as president, said on Friday Russia would be a stable energy supplier and a gateway to Europe for Asian countries, and also pledged to develop his country's transportation network.
Gazprom, Russia's state-controlled gas export monopoly, signed an agreement with Japan to develop plans for a $7 billion liquefied natural gas plant on Russia's Pacific coast, underscoring Moscow's eastward shift.
RUSSIA LOOKS EAST
The relative strength of China's economy, by far the largest in Asia and second in the world to the United States, is key to Russia's decision to look to the Pacific Rim as it seeks to develop its economy andEurope battles economic problems.
APEC, which includes the United States, Japan, South Korea, Indonesia and Canada, groups countries which account for 40 percent of the world's population, 54 percent of its economic output and 44 percent of trade.
APEC members are broadly showing relatively strong growth, but boosting trade and growth is vital for the group as it tries to remove the trade barriers that hinder investment.
"It is absolutely clear that the most important region for economic growth this decade - and probably the next decade - will be the Pacific," said Mexican President Felipe Calderon.