(MENAFN - Khaleej Times) There are words of appreciation and advice for Beijing.
The International Monetary Fund believes that the world's second largest economy can do a better job in beating recession and funnelling growth if it took stringent reforms as a matter of policy and not exigency.
Christine Lagarde, the IMF chief, by cautioning China that it should rewrite a new decorum of interaction other than relying on excessive exports and investment has simply made it clear that the West looks up to it as an interdependent trading partner and not merely as a patron in economic affairs. The impression that yuan could qualify as a global reserve currency is an acknowledgement of the fact that the communist giant has come a long way, and international lenders have realised its potential in all totality.
The yuan-dollar row, which has been there for long, is in need of being addressed. The IMF boss prescription could, at least, provide with a way out wherein both China and the United States could come to terms and strike a mechanism to appreciate the value of yuan.
This reconciliation of sorts will be a landmark development and come as an opportunity in providing the communist-cum-socialist giant a peep into the capitalist horizons. At the same time it will help China come out of its own ad hocism and concentrate on opening up its domestic sector for competition and foreign entrepreneurs.
Christine, on her trip to China and India, has indeed made an earnest attempt to woo the two major economies of the world. Her perception that China's active participation in world economy is indispensable for growth and development is the way to go ahead. Beijing now has to fine-tune its argument, and not let Christine's advice end up in archives.