Chinese mining companies in Ecuador and Peru recognize the social, environmental, and political issues which occur with significant development, and is giving back to the community by building bridges, roads, health clinics, sewers, and water systems.

Quantitative easing may in part explain the destabilizing effects that the global economy is facing, with cheap credit continuing to fueling the expectation of ever-rising prices. The 2015 Chinese crash was a direct product of the U.S. financial crisis of 2008, which was itself the result of a bubble in financial, insurance, and real estate assets.

If China’s economic growth is still under a big downward pressure and China’s central bank further imposes an easy monetary policy, the RMB will go through an increasing pressure of depreciation. Therefore, the inclusion of China’s currency in the SDR basket would be a double-edge sword.

The IMF’s decision to formally include the renminbi as one of five hard currencies in its SDR basket, and the half-decade or so of liberalizing reforms leading into it, is likely to be recorded by economic historians with the corresponding level of attention that is devoted to the establishment of the Federal Reserve System almost-exactly a century ago.

Chinese leadership’s recent engagements points to their persistent pursuit of its vision of connectivity named One Belt One Road (OBOR). New areas are now being added to the list.

SDR status is only a fresh starting point for transforming China from a big financial entity into a strong financial powerhouse. By adding a currency from the developing world, the SDR much better reflects the functions of emerging economies in global economic and financial affairs.

As China’s renminbi has been included in the IMF elite currencies and the Fed has started its rate hikes, conventional wisdom sees the RMB weakening and U.S. dollar strengthening as simple long-term trends. The realities are far more complex, however.

As the labor supply declines and labor cost increases, China must strengthen the supply front to really create new supply and efficiency dividends through reform. Reform on the supply front requires the improvement of capital-formation efficiency for the next five years.

The International Monetary Fund’s recent decision to add the Chinese renminbi to the basket of currencies that determine the value of its reserve asset, the Special Drawing Right, has captured headlines around the world. But the SDR itself has not exactly dominated discussions – much less transactions – since its creation in 1969. So does the decision really matter?

China’s new developmental strategy of “innovative, coordinated, green, open and sharing” economic growth is echoed in the theme for the G20 Hangzhou Summit, demonstrating that a new world economic growth strategy is gradually taking shape. Efforts will be focused on four elements: innovation, improvement upon global governance, promotion of international trade and investment as well as inclusive and concerted development.