The chairman of the China Banking Regulatory Commission said the US and other developed countries have not done enough to stop protectionism and resolve the problem of toxic assets, the Wall Street Journal reported. Liu Mingkang said a global recovery would not occur until problems in the global banking sector were dealt with. "Toxic assets must be immediately resolved world-wide. Absent a radical carving off of toxic assets in one go, the picture will never be good," Liu said. While he cautioned against reading too much into signs of economic improvement in China, Liu said that the country’s banking system is "sound and solid." The US Department of Treasury hopes to boost recapitalization in the banking sector by establishing public-private partnerships to buy toxic assets from banks.