Doing Business in China

In a joint statement, G8 leaders cautioned that "significant risks remain to economic and financial stability" while "exit strategies" from pro-growth packages should be unwound only "once recovery is assured".

Major powers leaders met in L'Aquila, a mountain town wrecked by April's earthquake and a fitting backdrop to talks on a world economy in deep recession.

The Group of Eight -- United States, Germany, Japan, France, Britain, Italy, Canada and Russia -- badly underestimated the economic problems facing them when they met last year and were much more cautious this time around.

"All were of the view that the crisis is a long way from being over. With luck, we have reached the bottom," German Chancellor Angela Merkel told reporters.

"Stable and sustained long-term growth will require a smooth unwinding of the existing imbalances in current accounts," the statement said.
 
China complains that dollar domination has exacerbated the global crisis and worries that the bill for U.S. recovery poses an inflation risk for China's dollar assets, an estimated 70 percent of its official currency reserves.
 
Analysts said the decision not to refer to this directly could remove a destabilising factor on currency markets.