BEIJING - China's efforts to rigorously reform and open up its financial sector will help contain risks in the global system.

Academics and analysts have warned of the dangers ahead against the backdrop of a weak recovery from the financial crisis, and policy uncertainties in the United States and Europe.

Although US Federal Reserve Chairman Janet Yellen has suggested that we might not experience another financial crisis "in our lifetimes", it is still too early to declare victory.

There exist risks for the US in pursuing a clean-up of its financial balance sheet. Efforts to shore up the banking sector in parts of Europe are still lagging behind.

"With the developed economies still on a slow-growth trend, Western countries should strictly prevent their financial markets from systemic risks," said Bao Jianyun, a professor on the world economy at the Renmin University of China.

At the same time, leading Western policymakers are starting to shift from crisis firefighting to domestic growth. For instance, US president Donald Trump's administration is proposing to roll back many of the post-crisis financial regulations.

"The president's new deregulation plan may benefit his country in the short term but would add risks to the international financial system," said Ou Minggang, director of international finance research center at China Foreign Affairs University.

A major risk facing Europe is the withdrawal of monetary stimulus by the European Central Bank for the eurozone. There are also concerns about possible Brexit scenarios when the United Kingdom leaves the European Union in 2019.

"These uncertainties have resulted in confidence risks, especially after protectionist moves by some countries to close their doors to overseas trade and investment," Bao warned.

As the trend of protectionism spreads from developed countries to developing ones, Bao regarded China as the backbone of global financial stability, with its rising stature in the world economy.

"China has now become the main driver of globalization," Bao said. "China's financial openness and stability attach itself an indispensable role in the global financial system."

The country is committed to improving its investment and market environment and accelerating policies to open up to the outside world, according to a Monday meeting of China's Central Leading Group on Finance and Economic Affairs.

"With the internationalization of the Chinese currency, the world's second largest economy will further open up its financial markets to provide more public goods on the global market, partly replacing prior functions of Western powers," Bao said.

China sees guarding against systemic risks as the main theme of financial work.

To illustrate that point, it was agreed that the State Council would set up a committee to oversee financial stability and development at the National Financial Work Conference which finished on Saturday.

"China is attaching great importance to financial stability and promoting work to enhance the country's competitiveness," said Bao, stressing that financial stability has a strategic importance for the country.

Xinhua