Old world economy gets new clearance instrument

Instilling confidence in the international community about China is a tall order amid gloomy, if not nerve-racking, reports about the global economy and repeated rumors about the country's imminent economic collapse. But Premier Li Keqiang did exactly that on the sidelines of the United Nations General Assembly annual meeting in New York. He told his audience what they needed to know - the till now successful dogged pursuit of the country's transition toward sustainable development.

His endeavor comes against the backdrop of the tremendous economic power China has gained in the past decade and the greater role it has started playing on the world stage, which can be seen in the International Monetary Fund's recent decision to include the renminbi in its Special Drawing Rights currency basket, making it an international negotiable instrument.

More significantly, Li also announced the establishment of the first international clearing service for the renminbi in New York. Bank of China's branch in the Big Apple was authorized on Tuesday to provide renminbi clearing services in the United States.