China stays quiet amid talk of new financial order

Beijing has not shown interest in calling for a brand new monetary regime to emerge in the midst of the global financial crisis. There are some economists, intellectuals and politicians openly calling for a new world order in terms of finances. While Beijing has been critical of Washington as of late for irresponsible stewardship of the dollar and failing to protect against market volatility. The reason Beijing has been critical is because the status of America will effect the stability China seeks to maintain.

China holds large amounts of U.S. dollars in reserve and does not intend on making substantial changes to their financial system. The Chinese yuan is still not convertible for purely financial transactions, something Thailand wished were the case so that the yuan could beocme the anchor currency in Asia. Right now, there are those who believe China's economy is not yet strong enough for such a move. It could take 10 to 15 years for China to remove its capital controls.

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