Chinese Vice Premier Li Keqiang has called on countries to forge partnerships that are more balanced and equal while putting in place secure fiscal and financial systems to achieve global economic recovery and sustainable growth.

China will deepen the reform of its fiscal and taxation systems to boost economic growth and accelerate the change of its economic development pattern, Li, who is also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, said at the third meeting of the International Forum of Sovereign Wealth Funds in Beijing on May 12.

Given the complex and changing situation in the wake of the global financial crisis, the international community should reflect on how to achieve the all-round recovery and sustainable development of the world economy by seizing opportunities and coping with challenges, Li said. Efforts to promote the stable and rapid growth of developing countries are conducive to expanding world markets and laying a solid groundwork for world economic development. The world community should view the development of emerging economies from a tolerant, cooperative and win-win perspective and work together to find solutions to unbalanced development.

Economic globalization is essential to the prosperity of all countries, he said. Countries should open up markets, oppose protectionism in all forms, push for progress in the Doha Round of free trade negotiations and promote strong, sustainable and balanced growth of the world economy.

A healthy and orderly financial market helps improve the efficiency of the real economy and boost its development, Li said. Problems in the financial market such as a high leverage ratio and asset price bubbles, however, could harm both the financial system and the real economy. Financial innovation and development should always serve the interests of the real economy.

Since the underlying impact of the global financial crisis has yet to be addressed, countries should work in concert to deepen fiscal and financial reforms, he said. They should also set a reasonable limit to fiscal deficits and debts, improve the international monetary system and phase out fiscal and financial risks. Countries issuing major reserve currencies should take into consideration the impact of their macroeconomic policies on both domestic and world economies curb unregulated international capital flows and prevent global inflation.

Under the newly adopted 12th Five-Year Plan (2011-15), China would conduct strategic economic restructuring for long-term, stable and rapid growth, Li said. Making innovations in existing systems is essential to fulfilling goals put forward in the plan. China will speed up the reform of its fiscal and taxation systems to make them more conducive to the transition of the country's economic development pattern. It will deepen the reform of its financial system as well. It will improve its currency exchange rate system by allowing the market to determine the exchange rate of the Chinese currency. It will also strengthen and improve financial supervision as part of its efforts to develop a modern financial system. At the same time, China will open itself wider to the outside world to give impetus to its development, reform and innovation efforts.

While tackling the global financial crisis, sovereign wealth funds played a positive role in stabilizing global financial markets and restoring confidence, Li said. The Chinese Government will continue to support the market-based operations and investment of its sovereign wealth fund. All countries should join hands to create an open, equal and non-discriminatory environment for financial firms' investment activities.

Representatives from leading sovereign wealth funds, investment banks and financial institutions, prominent scholars as well as international organization and government delegates attended this year's International Forum of Sovereign Wealth Funds, which was hosted by the China Investment Corp., China's sovereign wealth fund. The forum was inaugurated by 26 sovereign wealth funds from around the world.