countries, to simplifying mutual settlement and loan services among the BRIC
countries, to reducing dependence on the USD and on the EUR and to effectively
guaranteeing fundflow and trade contacts among its member countries. With
participation in and preparation for establishing a BRICs cooperation mechanism,
China is improving its capability for agenda setting, reform goals, policy proposals,
etc. in globalfinancial governance, as well as for gradually narrowing its gap with
the EU regarding its capacity for globalfinancial governance.
7.2.2 Areas Involved in China-EU Exchanges in Global
Financial Governance Since the Crisis
7.2.2.1 Reform of the International Currency System
Given the special status of the USD in the international currency system, the USA
has continually shifted its burden of the crisis onto foreign countries through the
USD during the crisis. The depreciation of the USD and the quantitative easing
policy invited extensive criticism in this period. China also started voicing its
opinions about issues concerning the reform of the international currency system.
Zhou Xiaochuan, Governor of China’s Central Bank, published an article entitled
Thinking about Reform of the International Currency Systemon the official website
of the Central Bank in March, 2009, in which he proposed an ideal goal for
reforming the international currency system: create an international reserve cur-
rency decoupled from the sovereign country and capable of maintaining a long-term
stable currency value. Zhou Xiaochuan believed that the reestablishment of a new
and widely-accepted reserve currency with a stable valuation benchmark may take a
long time; however, in the short run, the international community, especially the
IMF, should at least admit and squarely face the risks resulting from the existing
system, continuously monitor and evaluate it, and at the appropriate time, give early
warning. Although China’s initiative for an international currency system seemed to
be slightly insubstantial and hasty and it lacked specific operation suggestions, it
drew attention from other stakeholders, including the EU, and received a positive
response. During the 2011 Cannes Summit, the EU also initiated discussions about
reforming the international currency system and made a declaration beneficial for
strengthening the RMB. For example, theDeclaration of the G20 Cannes Summit
made it clear that the composition of the Special Drawing Rights (SDR) should
continue reflecting the roles of the various currencies in the global trade and
financial system. The composition of the Special Drawing Rights should be eval-
uated on the basis of existing criteria, and the IMF was required to further clarify
these criteria. In order to reflect changes in the roles of currencies and character-
istics over time, the composition of the Special Drawing Rights would be
7 China-EU Relations in the Context of Global Financial Governance 147