China should play a key role in addressing global imbalances amid growing calls that emerging countries should shift their export-dependent growth models into domestic demand-centered growth, a U.S. economist said Thursday.
The global economy is sputtering, mainly driven by sluggishness in major economies. Emerging countries, which recovered quickly from the 2008 global financial crisis, have faced criticism from some advanced nations which argue their export-driven growth contributes to global imbalances.
Stephen S. Roach, a research fellow at Yale University, said that global imbalances should be addressed, led by major developing economies through efforts to shift their growth models into those focusing on boosting private consumption.
"China holds the key to this daunting transformation not only since it is the second-largest economy in the world, but also because it has become an increasingly critical driver of pan-Asian GDP growth," said Roach told a forum in Seoul.
Roach is the former chairman of Morgan Stanley Asia and is widely known for his pessimistic view about the economy.
He added that U.S.-led China bashing will be problematic in the post-crisis world as one of the biggest wild cards.
Roach said anti-China protectionism will hardly be minimized after the upcoming U.S. presidential election and China's leadership transition as the U.S. labor market is likely to remain weak for years to come.
"Global healing can only occur if nation states avoid trade frictions and protectionist temptations and focus, instead, on their own long overdue rebalancing agendas." (Yonhap News)
