China-US pledge $20 billion trade aid
06-12-2008
China and the US have pledged US$20 billion to help finance global trade, as part of efforts to boost the faltering world economy. The money will be made available to importers, including those in developing countries, who have found it difficult to get credit to buy goods. Earlier, China called on the US to save more, blaming its excessive consumption for the financial crisis. "We are both committed to strengthening the global economy," Henry Paulson, the US Treasury Secretary said, at the end of high level talks on the world economy. Importers around the world have struggled to get credit to buy goods as banks have tightened their lending. This has been a further drag on economic growth, as factories find their customers are short of cash to buy their goods. The money will be made available through the countries' export-import banks. But, though symbolically important, correspondents say that the sum involved - US$12 billion of which will be provided by the US and US$8 billion by China - is relatively small and unlikely to make a huge difference.
