Michel Camdessus Central Banking Lecture Series

IMF News, June 24, 2016

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Occasion: 2016 Michel Camdessus Central Banking Lecture, third edition of the lecture series named after Michel Camdessus.
Speaker introduced: Governor Zhou Xiaochuan, the 11th and longest-serving Governor of the People’s Bank of China.
Greeting to Chinese guests: 欢迎 [Huānyíng].

China accounts for about the same share of global output as all other emerging economies combined.
China is home to almost a quarter of the world’s workers.
China has 14 cities with more than 5 million people.
China represents 30 percent of global investment.
China houses 5 of the world’s largest 20 banks by assets.
In the context of global box office, 12 percent of its global takings came from China (reference to Batman vs. Superman).
Historical growth:
- Growth averaged 10 percent since 1985.
- Growth slowed to 9.2 percent at the height of the global financial crisis in 2009.
Recent output addition: Last year alone China added to its GDP the equivalent of a mid-sized economy like Sweden, Poland, or Turkey.

China is described metaphorically as reinforcing its hull and upgrading its rudder to become more nimble.
Monetary reforms:
- Introduced more flexible interest rates.
- Increased role for market forces in the exchange rate.
- Governor Zhou credited with playing a crucial role.
Financial reforms:
- Priority to make China’s financial system more open, safer, and more inclusive.
- A deposit insurance scheme is in the plans.
- Ongoing Financial Stability Assessment Program intended to help strengthen oversight of the increasingly large and interconnected financial system.
Structural shifts:
- Moderately reducing speed, sailing at a more sustainable pace.
- Shifting composition away from investment toward more consumption.
- Movement from manufacturing toward more services and greater public services.
- Environmental policy: In 2017, China will roll out the world’s largest emissions trading system.
International responsibilities: As China’s global role grows, its smoother domestic transition will benefit the global economy but can produce significant ripple effects for smaller economies.

Personal and professional traits emphasized:
- Described as a reformer, central banker, internationalist, and multilateralist.
- Fusion of global vision with characteristic Chinese wisdom; calm demeanor, world-class intellect, energetic personality, wide-ranging interests.
Personal background and interests:
- Avid player of badminton and tennis — sports requiring stamina, agility, speed, precision, and strategic skills.
- Electrical engineer by training.
- Traveled the world; developed an appreciation for Western classical music and opera.
- Co-authored in 1998 (as President of the Construction Bank of China) a book entitled “Journey of Musical Operas.”
Relationship with IMF Managing Director: Described as a friend; long-standing professional respect and admiration.

China portrayed with dual metaphors: a "mega" container ship (by weight in the global economy) and an "elegant speedboat" (by speed of transformation).
Emphasis on deliberate navigation: reinforcing institutional “hull,” upgrading policy “rudder,” and learning to navigate a larger role on the global stage.
Formal welcome: Audience invited to warmly welcome Governor Zhou to deliver the lecture.

Managing Director’s Welcoming Remarks, Michel Camdessus Central Banking Lecture Series, June 24, 2016 — IMF Communications Department