Chinese President Hu JintaoChina prevailed upon the G-20 to water down a resolution to correct global economic imbalances, even as India's Finance Minister Pranab Mukherjee raised concerns about rising commodity and energy prices.
The final G-20 communiqué that was issued after two days of hard bargaining was a compromise worked out between the member countries. On China's insistence, it excluded key issues like foreign exchange reserves and fiscal deficit.
"There were differences, therefore in this communiqué, it was agreed that we will try to identify and complete the process (of selecting indicators) by April," Mukherjee reported after the meeting of finance ministers and central bank governors.
Mukherjee, spearheading the Indian team at G-20, said that about 500 tax information exchange agreements have been signed between different countries across the globe, a development that will help fight the menace of tax evasion and track ill-gotten money.
China is sitting on huge forex reserves and does not want these to be included as a parameter for tracking and correcting structural flaws to reduce global trade imbalances.
China has $2.8 trillion worth forex reserves and is accused by the U.S. of manipulating the yuan.