Li vows new round of opening-up

BOC named as first in US for RMB clearing; qualified foreign banks invited to participate

China still has a long way to go to reach modernization and needs to pursue development through deepening reform, further opening-up and safe-guarding a peaceful environment, Premier Li Keqiang said on Sept 21 at UN headquarters in New York.

Li said his nation has become the first nation to submit a report to the United Nations on how it is implementing the 2030 Agenda for Sustainable Development, a blueprint endorsed last year for ending poverty and hunger, promoting equality and protecting the environment by 2030.

Premier Li Keqiang talks to people in the fields of finance, media and think tanks in New York on Sept 20. Huang Jingwen / Xinhua

While addressing the general debate of the UN General Assembly, whose theme is "The Sustainable Development Goals: A Universal Push to Transform Our World", the premier vowed that China will carry out a new round of opening-up and other work to achieve mutually beneficial cooperation.

Li said that for the sustainable goals to be attained, current norms regarding the international order and relations must be maintained. These norms, formed in the wake of World War II, have ensured peace in the world for more than 70 years, he said.

"They have been proved effective and must be safeguarded with resolve," he said.

The premier also said the world economy's sluggish growth must be reversed, or sustainable development will have no foundation.

Meanwhile, Bank of China has become the first renminbi clearing operator in the United States, after the announcement by Li that China had decided to designate a domestic bank for the clearing business in New York.

Li made the announcement on Sept 20 while speaking to the Economic Club of New York.

He did not name the bank at the time, but did say foreign banks in the city that met the eligibility requirements are welcome to become RMB clearing banks.

Afterward, the People's Bank of China, the central bank, said Bank of China had been designated as the RMB clearing bank in the US, according to a news release.

In September last year, China and the US agreed to further boost cooperation on RMB business.

At the conclusion of the eighth China-US Strategic and Economic Dialogue in Beijing in June, both countries announced they would further develop RMB trading and clearing capabilities in the US.

According to the Society for Worldwide Interbank Financial Telecommunication, Hong Kong is the biggest offshore RMB clearing center, followed by London and Singapore.

China has promoted a "going global" campaign for the RMB for years, says Guo Tianyong, director of the Chinese banking industry research center at Central University of Finance and Economics in Beijing.

The US is a key market for the currency's transactions because many enterprises and individuals need to exchange for renminbi, Guo adds.

The going global campaign needs the participation of eligible foreign banks, which have larger numbers of clients and market share in the US than domestic banks, and their participation will help expand the use of the currency internationally, Guo says.

Meanwhile, Li said he had heard some complaints from foreign companies about continuing to face restricted access to the Chinese market.

"Some sectors in the Chinese economy have not become mature. But the process of them becoming more mature is also a process for them to further open up," he said.

Hong Xiao contributed to this story.

Contact the writers at huyongqi@chinadaily.com.cn

(China Daily Africa Weekly 09/23/2016 page27)