IMF – China: Cooperation to Maintain Global Stability and Prosperity

Director of the International Monetary Fund: “Accelerating the economic reform process will allow China to grow much faster than in the status quo scenario”

Kristalina Georgieva

Chinese Premier Li Qiang received Kristalina Georgieva, Managing Director of the International Monetary Fund, in Beijing on Monday, May 25. He expressed hope that the IMF would continue to “play a positive role in defending economic globalization, free trade, and promoting an open global economy.” Referring to China’s economic situation, Li said that from the beginning of this year, its economic growth has “continuously consolidated and strengthened, laying a solid foundation for achieving annual socio-economic development goals.”

In talks with the PRC Premier, Georgieva emphasized that “reforms are necessary to achieve high-quality growth and further strengthen the IMF’s engagement with China.”

For his part, Li expressed hope for more involvement of global businesses in the Chinese economy thanks to the IMF’s “active stance.” “Our economy,” the Premier emphasized, “has advantages in terms of institutions, markets, industries, human resources, and innovation. Its long-term positive foundations have not changed and will not change. We have the confidence and ability to support healthy and sustainable economic development.”

Prior to her meeting with Li Qiang, the IMF Managing Director attended the China Development Forum. Speaking at it, Georgieva said Beijing “must make a decisive choice between policies that have worked in the past or updating them to help usher in a new era of high-quality growth.”

Georgieva called for accelerated economic reforms in the world’s second largest economy. “According to our analysis, with a comprehensive package of market reforms, China can grow much faster than in a status quo scenario. This continued growth would be equivalent to a 20-percent expansion of the real economy over the next 15 years. In today’s environment, this would be equivalent to a $3.5 trillion increase in the Chinese economy,” the IMF chief said.