The finance chiefs of the United States and China—two of the world’s biggest economies—will not be attending the culminating meeting in Cebu City next week of the Asia-Pacific Economic Cooperation (Apec) finance ministers’ process.
Finance officials told a press briefing Wednesday that Jack Lew, the US treasury secretary, and Lou Jiwei, China’s finance minister, will not attend the 22nd Apec Finance Ministers’ Meeting on Sept. 10 to 11.
Lew, who is Jewish, will be unable to attend the meeting because it coincides with a Jewish religious holiday. Jews observe the Jewish New Year, Rosh Hashanah, starting at sunset on Sept. 13 until nightfall of Sept. 15.
As for Lou, DOF officials said he had begged off, saying he had to attend to “domestic issues.”
Last month, China devalued its tightly controlled currency, dragging regional currencies weaker. Beijing devalued the yuan to boost its flagging exports amid weak global demand. A weaker currency stands to benefit China’s export sector, as products become cheaper alongside a weaker yuan.
In a statement last week, Philippine Finance Secretary Cesar V. Purisima warned against “using exchange rate to shore up weak growth.”
“[W]e must be mindful of the trade-offs involved in using the exchange rate as a trade tool to boost competitiveness,” he said, pointing out that that would bring “unintended consequences.”
“For one, it may trigger competitive devaluations across the region as other currencies adopt similarly interventionist measures to reprice their currencies,” Purisima noted.
The DOF nonetheless maintained that all of Apec’s 21 member-economies will be represented at the Cebu meeting, as deputies would be sent in the stead of absent finance chiefs.
DOF officials also noted that in other previous Apec finance ministers’ meetings, not all ministers were present.
To date, at least nine finance heads have confirmed attendance, including Purisima, as well as the ministers of Australia, Brunei, Hong Kong and Taiwan.
This year’s host, the Philippines, is hopeful that Apec finance leaders will approve its proposed Cebu Action Plan at the end of the two-day meet.
The four-pillared Cebu Action Plan is aimed at integrating the region’s financial sector while enhancing resiliency, fiscal transparency and infrastructure development under a 10-year roadmap.
“Given volatilities, member-economies will have a greater appreciation of the Cebu Action Plan,” said Finance Assistant Secretary Maria Edita Z. Tan.—Ben O. de Vera