China says IMF race ‘open’ as Lagarde visits

Mukherjee on Tuesday after meeting Lagarde had said that the choice of an IMF chief should be based on “merit” and “competence”.

China,India and other emerging nations have baulked at Europe’s traditional lock on the top job at the Washington-based IMF,calling the arrangement outdated,so their support is seen as key to the success of Lagarde’s bid.

After arriving in China on Wednesday,Lagarde launched a marathon day of talks,meeting Yang,central bank governor Zhou Xiaochuan and Vice Premier Wang Qishan,China’s top official on financial affairs,a French embassy official said.

The French minister,a 55-year-old former international lawyer,was also to hold a dinner meeting with the country’s Finance Minister Xie Xuren.

“We had a good discussion. She explained to me the purpose of her candidacy. I listened very carefully,” Yang told reporters after his meeting with Lagarde at a government compound in Beijing where foreign dignitaries are often hosted.

“It’s an open field now. There are quite a few people campaigning,” he said in English. “China of course gives serious thought to this very important issue.”

Earlier,Lagarde said,“It was very important for me to come and explain the purpose of my candidacy to the Chinese authorities.” Lagarde is seen as the frontrunner to replace Dominique Strauss-Kahn,who resigned last month after his arrest on sexual assault charges.

Two weeks ago,France’s chief government spokesman Francois Baroin said China — the world’s second-largest economy — was “favourable to the candidacy of Christine Lagarde”,but did not offer any evidence to back up his statement. China’s foreign ministry subsequently said the choice of a new IMF chief should be based on “openness,transparency and merit,and better represent emerging markets and better reflect changes in the world economic structure”.

Lagarde — who has already visited Brazil — has pledged to reform the IMF to give emerging and developing countries more power.