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WB chief calls for close relations between US and China

(Xinhua)
Updated: 2009-04-22 11:51

World Bank President Robert Zoellick said on Tuesday that the United States and China should work closely to cope with the current crisis.

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"We try to point it out that in addition to getting out of this economic downturn, its important for the United States and China to work cooperatively on mutual structural reforms," Zoellick responded to a question raised by Xinhua.

According to Zoellick, the root cause of broader global payment imbalances is structural: overconsumption in the United States and oversaving in China.

Thus, the United States must boost savings and investment while China increases consumption, not just capacity, he noted.

In a recent article published by The Washington Post, Zoellick and Justin Yifu Lin, chief economist and senior vice president for the World Bank, also called for a strong G2 between the two powers.

"Without a strong G-2, the G-20 will disappoint," they said.