Experts:Global Stability Requires Reform Both Inside and Outside China

Over 500 participants have descended on central Beijing to listen to some of the world's leading academics and members of the government talk about the growing importance of China in today's world.

The forum, organized by the London School of Economics, covered a wide range of topics under the four main themes of economic development, China's role as a diplomatic power, climate change and China's healthcare system.

CRI's Dominic Swire was there and filed this report.

One of the key topics discussed at the LSE Asia Froum was how to restructure China's economy in the wake of the global recession. Liu Mingkang, Chairman of the China Banking Regulatory Commission gave a speech emphasizing the importance of economic reform.

"It remains a crucial task for the Chinese government to carry out further price and tax reforms to transform its economic development approach from growth driven to quality driven, from resource intensive to efficiency driven, from labour intensive to technology driven."

It's not just China that needs to rethink its current method of operating. Stephen Roach, Chairman of International Consultancy Morgan Stanley Asia says the United States, too needs to change the way in which it deals with Beijing. He says

American politicians are often guilty of using China as a scapegoat for many of their country's problems, particularly with regard to trade deficit.

"In 2008 the US had trade deficits with over ninety different countries, ninety! This is a multi lateral problem. It is not a bilateral problem. You can't fix a multilateral problem with an adjustment in a bilateral relative price, you just rearrange the deckchairs on the Titanic."

With regard to China's emergence on the world stage, Professor Odd Arne Westad from the LSE, an expert in Chinese international affairs, drew a comparison with the uncertain times of the early 20th Century when the UK relinquished its position of world dominance to the US.

Nevertheless, speaking to the media on the sidelines of the conference, Professor Westad still found reason to be optimistic about Beijing's relationship with Washington.

"I think the most recent signal from the Chinese government to allow the US naval visit to Hong Kong to go ahead and not put any obstacles in the way of it is very positive, and it shows a Chinese administration that is willing to learn to live with an American administration whose priorities with regard to China are not always obvious."

The forum was the fifth held by the London School of Economics and forms part of the University's strategy of enhancing ties with not just China but the wider Asian region as a whole.

Dominic Swire, CRI news.