China 'needs to take active role'

By Fu Jing (China Daily)
Updated: 2008-10-29 09:30

He suggested that a new global monitoring and arbitration system should be put in place to keep track of cross-border capital flows.

"The system could work as a warning and arbitration system to deal with wrongdoings in global credit flow," Tang said.

Guo, who once served as deputy governor of the nation's central bank, said China's potential role in the new financial order was a result of the economic strength it gained during the past three decades; with its GDP growing at an average of 9.8 percent annually and foreign reserves reaching $1.9 trillion.

Guo said China should actively embrace the opportunity and take the lead in rebuilding the international currency system.

"In some way, China has already become the world's biggest capital exporter and it should have a say in the system."

Tang agreed with Guo, but he added: "We should bear the interests of other developing countries in mind when negotiating with developed countries."

"This is about the new order: it's a system to ensure financial security and protect everyone's interests," said Tang.

Li Jiange, chairman of China International Capital Corporation (CICC) struck an optimistic note.

"In times of crisis there are many doubters and pessimists, and this mood is contagious," said Li, a former vice-president of the Development Research Center of the State Council.

He said the crisis resulted from financial derivative tools, which caused many economic bubbles.

"But we cannot criticize international financial cooperation and innovation, which has, for example, promoted the development of the high-tech industry."

Li said the international community, including China, should work hard to find ways to avoid financial risk in future cooperation and global credit transactions.

"Financial innovation will not be stopped, but there should be a way to root out risks," Li pointed out.

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