China should be willing to loosen trade and investment restrictions if it seeks to play a leading role in globalization, International Monetary Fund First Deputy Managing Director David Lipton said.
Speaking at the Asian Financial Forum in Hong Kong Monday, Lipton acknowledged that China’s leadership has been a “voice of reason” in terms of preserving the current system of rules-based international trade, but the nation also had more to do.
“We believe that effective and credible leadership in support of globalization also requires a willingness to recognize and address one’s own shortcomings,” Lipton said. That means “protecting intellectual property rights and reducing the distortions of industrial policy, overcapacity, and policies that favor state enterprises.”
