JNN 08.11.10 China has blasted a US decision to inject hundreds of billions of dollars into the US banking system amid growing tensions between Washington and Beijing.
Zhu said the move would bring greater volatility to markets worldwide and lead to excessive flows of capital into emerging markets.
“The US has not fully taken into consideration the shock of excessive capital flows to the financial stability of emerging markets,” Zhu told reporters in Beijing on Monday.
Last week, the US Federal Reserve announced plans to pump $600 billion into its economy by the end of June 2011.
Experts say the move is an attempt to boost America’s sluggish economy.
The move is expected to force down interest rates for homeowners and businesses.
Supporters of the plan say weakening the US dollar could also help make American goods more competitive overseas.
Nations from Brazil to Germany have criticized the US policy, saying it will push their currencies higher and make their exports less competitive.
Relations between Beijing and Washington have been deteriorating over a number of issues, including currency debates and the Pentagon’s arms sales to Taiwan.
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