Lagarde says not surprised to see Beijing-Based IMF

(ECNS) – The International Monetary Fund's (IMF) manager director said that she wouldn't be surprised if one of these days IMF was headquartered in Beijing, but a Chinese expert on global economics said that it's very unlikely to occur at present, China National Radio reported.

Christine Lagarde said in London this week that the headquarters may one day leave Washington for Beijing, aligning with China's growing influence on the world economy, according to Bloomberg.

Chen Fengying, director of the World Economy Institute of China's Institute of Contemporary International Relations, said the US wouldn't allow it to happen, and Western countries still considered the world economy's center to be in the US or other developed regions.

Chen said Lagarde was voicing her discontent over the US's indifference to IMF reform with her comment. "The US owns 17 percent of the voting shares of the fund. But any resolution cannot get passed without 85 percent of votes from 188 member countries. If the US government doesn't support IMF, it can't make any reforms," she added.

Chen said this is because the US power is declining, and it pays more attention to domestic affairs rather than international responsibility.

The expert didn't rule out the possibility that IMF headquarters would shift to China in the future, and she hoped it would be located in Shanghai, as the city will grow into an international financial hub.

Despite her cautiousness, Chinese citizens are more optimistic about the possibility. One said Beijing can bear the responsibility because the yuan is strong. And another said Beijing, as China's financial center, is at the top of the list to undertake a new international function.