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China submits that the actions of the Federal Reserve will be damaging the global recovery and destabilize the world monetary system.

This thin chance that the leaders of the G20 meeting in Seoul last week could agree a credible plan to address rising protectionism currency, trade and capital account compromise.

China says that the actions of the Federal Reserve will be damaging the global recovery and destabilize the monetary system in the world, but is to divert the attention of a complex problem, a substantial part of which is located in Beijing, not Washington, DC.

The financial crisis has shocked the United States and United Kingdom among other indebted nations, a long economic restructuring, in which the destruction of the debt and higher savings are inevitable.

But the global system can only function if saving to the United States is offset by weaker economies in the major creditor countries, including China, which saves a 53pc unprecedented GDP and consumption is a humble 37pc GDP.

In the world after the crisis, therefore, economic restructuring in China by choice is also important that imposed on United States under the five-year plan contrainte.Nouveau China recognized the need of economic rebalancing, but we shouldn't hold our breath for decisive action.

The pragmatic reason is that China's political leadership will be replaced in 2012, coincident, it lies with the presidential election.

In the meantime, licensees will certainly not want the Bull of disruptive change to changing economic and political power of the prosperous coastal cities backcountry economically backward and rural areas and manufacturing exports and consumer industrial investments and new service production industries.

Substantive reason is that China's reform program is demanding more economically and politically controversial as the complete restructuring initiated by Deng Xiaoping reforms after 1978, which put China on the way to become what it is today.

Support the strong economic growth and low domestic savings, China should allow the yuan to increase more significantly, turn to interest rates determined by the market pass income and wealth formation of business to consumer.

It will have to raise wages, especially for the 800 million people who depend on rural activities and increase payments transfer, for example, by extending and deepening the limited pension and health care delivery.

It will have to reform public companies by allowing them to divert the profits retained by payment of dividendes.Et households need reforming other structural factors behind savings, as the prices of real estate, limited access to benefits by unregistered rural migrants working in cities, immature markets and taxes and subsidies that promote the businesses on households.

Can China draw this? answer is less on the economy and more if China's political system is ready to risk the economic and political disruption that is in turn inevitable change processing.

Annual incidents of social unrest is already estimated to approximately 90,000 since 2006.Et it to know whether the low quality of its legal, social and political institutions can facilitate the necessary adjustments in a large economy and modernize quickly.

These issues broadcast to Seoul, but they have more global rebalancing that attempts the Fed to keep the u.s. economy to collapse.

Unlike the 1980s and 1990s, the agenda of the current reform will be a rear test capability to handle changes in domestic China and its impact on the rest of the world.

"Current of China's reform agenda be back testing its ability to change".

George Magnus is the author of ' uprising: Will Emerging Markets Shape or hit the world economy "and advise economic at UBS Investment Bank."

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