China and Current International Monetary System Reform

As China is the largest developing country, has the largest foreign exchange reserves and is the third largest trading country in the world, the operation and changes of the international monetary system invariably affect its vital interests. China and many developing countries are inactive participants of the existing international monetary system, and the 2008 global financial crisis inflicted severe damage on China's development. Therefore, China should actively participate in the building of a new international monetary system to ensure that the new system will be in the interest of its development. The global economic growth calls for a new international economic and financial order. With China's growing economic strength, increasing openness in trade and finance as well as the steady improvement of its financial environment, conditions have emerged for the renminbi to become a regional or international currency. Indeed, it can be expected that the renminbi will sooner or later become an important currency in the international monetary system; and China will more actively participate in the reform of the international financial system and make its due contribution to the stable growth of the global economy (Li Ruogu, 2008).