WASHINGTON, April 22: Treasury Secretary John Snow said on Friday that ensuring global economic stability and balanced growth patterns was becoming more dependent on China and other countries besides the United States.

Following a meeting of the Group of Seven economic powers, Snow said the global economy was “in the best shape we’ve seen in a long, long time,” but that imbalances posed a threat.

Snow’s comments came as the G7 finance ministers and central bankers gathered in Washington issued a statement with an unusual reference to China and other emerging economies with big trade surpluses, calling on them to take steps toward exchange rate flexibility “for necessary adjustments.”

The potentially dangerous global imbalances are seen in the massive trade surplus being run up by China — which Beijing’s critics argue is the product of a distorted currency regime.

“The counterpart to the large US current account deficit is large imbalances elsewhere throughout the world,” Snow said.

“Thus, reducing global imbalances is a shared responsibility requiring complementary actions by a large number of economies.”

Snow stressed the same themes discussed during this week’s US visit by Chinese President Hu Jintao, who pledged to take steps to increase the flexibility of the yuan and boost imports but offered no specific measures or timetable.

The US posted a deficit last year of over $200 billion with China, roughly one-fourth of its total trade gap, while China’s currency reserves soared to over $800 billion.

Snow acknowledged that China is too big to ignore and must play a role in correcting the imbalances.

Asked about the reference to China in the G7 statement, Snow said, “It’s natural that since China is such a huge part of the global economy that it would be a focal point.”

On the imbalances, Snow said that “emerging economies, especially China, and oil exporters are increasingly relevant to this discussion.”

He added: “Those with large current account surpluses need to play a far more active role in managing global imbalances by adopting policies that allow for greater exchange rate flexibility, promote sustained increases in domestic consumption, and accelerate the pace of financial sector reform.”

Despite the problems, Snow said the finance chiefs focused on a global economy that is in unusually good health.

“The G7 met at a time when the global economy is performing in a strong, sound way,” he said.—AFP