/ world today news/ The new quantitative easing (QE) measures of the European Central Bank (ECB) could cause “competitive devaluation” of currencies around the world, warns the Chinese Ministry of Commerce.
Last week, the ECB announced a program to buy private and public bonds worth 60 billion a month starting in March as a safeguard against deflation in the eurozone. The figure was larger than analysts had expected, and China said it could worsen the situation by leading to competitive devaluation of currencies and increasing the uncertainty of international cross-border capital flows.
The measures will make European exports cheaper and boost market confidence in the short term. The long-term effects remain uncertain, Chinese economists warned.
The European Union is China’s largest trading partner. It is the leader among importers for the Asian country and second in terms of exports. /AFP
Beijing / China
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