Cameron Urges Reform in China

U.K. Prime Minister David Cameron called for China to contribute toward global rebalancing and advance human and political rights at home in a keynote speech in Beijing.

Speaking at Peking University at the end of a 36-hour trip to China, Mr. Cameron said China needed to move toward stronger domestic demand and a more flexible exchange rate as part of a global economic rebalancing that needs to be pushed ahead at this week’s meeting of leaders from the Group of 20 industrial and developing nations.

“The truth is that some countries with current-account surpluses have been saving too much … while others, like mine, with deficits have been saving too little,” he said. “We need a more balanced pattern of global demand and supply, a more balanced pattern of global saving and investment.”

Mr. Cameron said “China is already talking about moving towards increased domestic consumption, better health care and welfare … and in time, introducing greater market flexibility into its exchange rate.” The U.K. prime minister said “this cannot be completed overnight but it must happen.”

Mr. Cameron said he hoped the G-20 would agree this week on a common approach and a time frame for handling the problem of global imbalances at the meeting in South Korea.

“Changes in the structure of our economies will take time,” he said. “What is important is that the major economies of the world have a shared vision of the path of this change: what actions countries should avoid; what actions countries need to take and, crucially, over what period it should happen.”

In his remarks, which were followed by a brief question-and-answer session, Mr. Cameron touched on major international issues including the conflict in Sudan, the political situation in Myanmar and climate change. He said China has a “vital” role to play in preventing Iran attaining nuclear weapons.

Mr. Cameron also pushed Beijing on human rights issues, although he insisted his remarks were “not a lecture.” He said China stands to gain from greater political freedoms and securing the rule of law. And he said the British public has “sincere and deeply held concerns” over human rights in China. “We don’t raise the issues to make us look good,” he said.

Earlier Wednesday, Mr. Cameron met with Chinese President Hu Jintao on the second day of his major trade mission to China. The meeting, at the Great Hall of the People, focused on this week’s G-20 summit as well as international issues like Iran and Afghanistan.

Opening the meeting, where Mr. Cameron was accompanied by U.K. Business Secretary Vince Cable, Education Secretary Michael Gove and Energy Secretary Chris Huhne, Mr. Hu said he was “struck” by Mr. Cameron’s “commitment to the China-U.K. relationship.”

Noting Mr. Cameron is the youngest U.K. prime minister in almost 200 years, Mr. Hu described the U.K. ministerial team as “full of drive and energy.”

“I am sure that under your leadership, the China-U.K. relationship will see greater development,” the 67-year-old Mr. Hu said. Earlier this week, the U.K. and China announced the sealing of education and economic agreements. The trip also has seen a string of business deals done by U.K. firms, the largest of which was a $1.2 billion order from China Eastern Airlines for engines from Rolls-Royce Group PLC.

Mr. Cameron led the U.K.’s largest-ever business delegation to China this week in a bid to boost Britain’s exports to the Asian economy and improve other ties.

He met with Chinese Premier Wen Jiabao Tuesday. It is understood Mr. Cameron raised the issue of jailed dissident Liu Xiabao to Wen at a banquet later that day.