China confident to cope with QE spillover effects

China was not worried about the spillover effects of the quantitative easing (QE) moves of some major central banks, but will closely watch their implications for the Chinese economy, said a senior government official.[Special coverage]

"There has been a divergence of monetary policies among important economies. The U.S. Federal Reserve was mulling over an interest rate increase, but central banks of the eurozone and Japan are considering QE measures to bolster economic growth," Xu Shaoshi, minister in charge of the National Development and Reform Commission, China's top economic planner, said at a press conference Thursday.

"It is up to different economies themselves to decide upon their own monetary policies, but they should take heed of the spillover effects to other economies in setting those policies," he told reporters.

China has a large market and the economy has big room for manoeuvre, so "we are not worried about the impact," he added.

China's broad money supply, or M2, is forecast to grow by around 12 percent this year, lower than the target of around 13 percent of 2014, but the actual money supply may be "slightly higher than this projection depending on the needs of economic development," according to a government work report delivered Thursday by Premier Li Keqiang at the parliament's annual session.

Hit by waning exports and weak domestic demand, many economies posted disappointing growth rates last year and many central banks have adopted accommodative monetary policies like QE to boost economic growth.

The eurozone economy expanded by 0.9 percent for all of 2014, still too weak to convincingly signal a full-blown recovery, and the Japanese economy grew by a mere 0.04 percent last year.