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By Philippe Legrain ADD COMMENTS

For years, the US has lectured China on how it should run its economy. Now, the tables are turned.

US Treasury Secretary Hank Paulson went to Beijing to urge the Chinese government not to let its currency weaken.

The Chinese hit back in style. Zhou Xiaochuan, governor of the Chinese central bank, urged the US to
rebalance its economy.

“Over-consumption and a high reliance on credit
is the cause of the US financial crisis,” he said. “As the largest and
most important economy in the world, the US should take the initiative
to adjust its policies, raise its savings ratio appropriately and
reduce its trade and fiscal deficits.”

The balance of power in the world economy is shifting faster than most people realise.

Posted 05 Dec 2008 in Blog

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