China "Not Ready" for Leadership RoleFrom a speech by David Daokui Li, given to the Lowy Institute.
China is not ready for global economic leadership, says a former Chinese central banker, David Daokui Li.
Professor Li, one of China's most outspoken economists, said his country could not play a leading role in the global economic governance structure in a way that the West wants it to.
The emerging superpower's simmering domestic tensions will keep Beijing busy and inwardly focused. ''China has to focus on its domestic issues and they are getting increasingly complicated,'' Professor Li said in a speech at the Lowy Institute. ''Domestic social, political and economic stabilities are vital for the regime.
''As a big stakeholder and beneficiary of the current system, it is not in China's interest to radically change the existing arrangement.'' For example, Professor Li said, Beijing had no intention of jeopardising its $US3.3 trillion foreign reserves. Despite the fact that China has been making great strides in education and international engagement, there were not enough talents capable of leading global organisations.
He said China's contribution to the evolving global system would be slow and cautious.
''China's approach will be gradualist, trying to win time to adapt to the evolution of the international monetary system.''
Professor Li had argued in a recent Wall Street Journal opinion piece titled ''Put world in World Bank'' that the next president of the bank should be from the emerging market economies.
''When I wrote that article, I knew my proposal will not be accepted and Dr Kim's election was a foregone conclusion. However, I still wanted to make an argument about the necessary change down the road,'' he said.
On the issue of foreign investment, Professor Li urged both Australian and Chinese to be more patient and open-minded.
''We have to know each other better. Australian government and business need to understand better the inner workings of the Chinese economy. People need to understand companies like Huawei better instead of relying on stereotype.''
He hinted that the nominally Communist China was shedding its red colour fast: ''Things have changed in essence in China and maybe not in name.''
Very sensible guy. I agree your point. China will not go invade a country for the fun of it or for oil That's a good speech. Tell them what they want to hear and buy more time.
Being #1 or #2 is a western head game thing. Just don't fall prey to the demands from the west
to privatized state owned enterprises. Especially the banks and resource companies.
There is no reason to change course when you are, by far, the fastest growing economy in the world.
Especially these days. If the western 'experts' were really experts then why is the western economy
in shambles? ;P