IMF chief praises China’s deepening reform, opening-up

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‍International Monetary Fund (IMF) Managing Director Christine Lagarde Tuesday congratulated China on its achievements in the past four decades, and praised China's efforts towards deepening reform and opening-up.

“I congratulate you, President Xi, for this new era that you have identified, for the openness that you have celebrated and advocated, for the innovation and inclusiveness that you have encouraged,” Lagarde said at the opening ceremony of the Boao Forum for Asia (BFA).

“And you have not only been saying that in general terms, you've been very specific, opening sectors: banking, insurance, automotive, removing caps, reducing barriers, providing a more business friendly environment. You've advocated openness," Lagarde added.

She also stressed that it is through the protection of intellectual property for all China and foreign companies alike that this progress will actually come through.

“Happy next 40 years after this first success in the last 40," said Lagarde who looks forward to more great successes coming from China's reform and opening-up in the future.

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Three gaps in Asia

“It is through trade that innovation will continue to be shared, and that Asia from being a net importer of technology will also become a net exporter of technology,” Lagarde continued.

Asia is an important region in the world as it contributes two thirds of global growth and is forecast to grow at 3.9 percent this year and next. However, Lagarde suggested that Asian countries should close digital, regulatory and innovation gaps, to better serve their openness.

Lagarde said Asia, relative to the rest of the world, has probably the smallest digital gap, but if this gap can be closed, one full percentage of GDP on a per capita basis can be added in the region.

The IMF chief also suggested the regulatory gap should be closed, because it can actually lead to systemic risks especially amid blossoming fin-tech in Asia.

She also pointed out that trade can work as a key to promoting the sharing of innovation and new technologies.