China is playing a stabilizing role and acting very responsibly during the period of global financial crisis, a Russian expert has said. China has played the same role during the more deep-seated global economic crisis in 2008-2009, Oleg Timofeyev, associate professor with the Department of Economics and Management at the State University of Management, told Xinhua in a telephone interview.
China is to host a Group of 20 summit in the eastern city of Hangzhou on Sept. 4-5. "The summit is very important, as the Chinese economy continues to demonstrate the highest economic growth rate among the major economies," Timofeyev said. The world economy is in between Scylla and Charybdis (between a rock and a hard place), he said.
In December 2015 the U.S. Federal Reserve raised interest rates, which immediately led to decrease in the major index on U.S. stock exchanges, and consequently the financial markets around the world, said the expert. The financial mechanisms such as the BRICS New Development Bank, Silk Road Fund, Asian Infrastructure Investment Bank initiated by China are working not in full force, he said.
The proposed Shanghai Cooperation Organization Development Bank will strengthen the Chinese new global financial architecture and it will also significantly increase its economic power after the entrance of several new member states, he added.
After Chinese RMB's inclusion in the International Monetary Fund's Special Drawing Rights basket of currencies in November 2015, the RMB exchange rate will become more market-oriented.
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