G20 Summit

Baroness Stuart of Edgbaston Excerpts

Monday 15th November 2010 Commons Chamber

[The Prime Minister]

My hon. Friend gives me an extremely good script. My agenda at such gatherings is to stand up for Britain’s national interests. Above all, as a trading nation, that is about keeping the markets of the world open, and making sure that British business can create wealth and jobs around the world. That is the agenda we should have. When we are trying to get our economy growing at home, it is very important that we focus on those things that most help us back here in Britain.

[Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)]

I listened carefully to what the Prime Minister had to say about competitive devaluation and rebalancing the Chinese economy. Will he say precisely what the Chinese agreed to do about the renminbi, and what he thinks is the most desirable action?

[The Prime Minister]

There are two points, the first of which is on what is in the communiqué. Everybody signed up to avoiding competitive devaluations and moving towards market-led exchange rate systems. I accept that those are words, but they are positive. The fact is that China and America are discussing their differences and issues in a multilateral agenda. The second point is that it is in the interests of China itself, and indeed in its five-year plan, to see a growth of domestic demand as the next driver of its economy. That is good news for Britain, America and the deficit countries, but it is also in China’s own national interest. We should try to flag that up whenever we talk to the Chinese about that.