David Daokui Li: The US Has a Moral Obligation to the World Economy

David Daokui Li, Director of the Center for China in the World Economy and Dean of the Schwarzman Scholars at Tsinghua University, said during the 2015 Boao Forum on 29th March that US should live up to its global responsibility amid the post-crisis era.

Li believes that although the status of US dollar in the world market is declining, it is still the most important international currency. The previous crisis originated from the US eight years ago, and now their economy has stabilized thanks to the flow of overseas capital. Considering this, from a moral and economic point of view, the US needs to understand the responsibility and significance that it has in the world economy.

Speaking on China's current issues, Li pointed out that the biggest problem is the excessive short-term lending rate which makes it very hard for the real economy to get loans from banks. However, the good news for China is that due to recent reforms, China has more tools for making monetary policies.