The governor of the People's Bank of China, Zhou Xiaochuan, told the China Securities Journal on June 5 that the removal of stimulus measures is mainly dependent on China's domestic conditions.

"The timing to withdraw the stimulus package has to be decided by the domestic conditions of each country," Zhou said during the meeting of the G20 finance ministers and central bank governors held in Busan, South Korea.

He added, "Each country's economy is closely connected with the world economy and so all countries need to have an overall assessment of the world economy when making changes to their own economic policies."

When talking about China's withdrawal of its stimulus package, Zhou said, "Many stimulus measures were taken to tackle domestic issues. So the timing to withdraw such measures will mainly be decided by domestic conditions."

He also expressed confidence that the European Union and the European Central Bank could overcome the debt crisis and that the debt crisis will not have a big influence on China's exports.

Israel, Australia, Norway and Canada have raised their interest rates recently which, combined with the outburst of the European debt crisis, has further complicated the global economic recovery. So whether it's time for China to increase its interest rates has become a widely debated issue.

Although China's economy is externally oriented, as a country of 1.3 billion people, China has to consider domestic factors in deciding its monetary policies. International factors will also affect China's monetary policies, but such external factors are often less important than domestic factors, Zhou said at a press conference during the second round of the China-U.S. Strategic and Economic Dialogue

Zhou said every country is considering its own way of how to pay the stimulus costs and that a universal answer to this issue does not exist. So each country should find its own answer according to its practical conditions and the conditions of its financial institutions.