Although opening-up is an essential part of China's reforms, it also needs to take on a more global sheen and focus on "shaping the global agenda". While this calls for an increased role for China in global affairs, it also involves establishing strategic targets globally and getting support from all stakeholders.

There are three major areas where global collaboration is needed and in which China can help set the agenda.

The first involves smart and sustainable urban development or production and consumption patterns. The rapid urbanization now underway in China is an important activity that can provide answers to this problem.

The second area where China can pitch in is by continuing its efforts to transform its ageing population into assets and by restructuring the economic system in such a manner that cultural contributions from older people are recognized and valued more than material luxuries.

China can also lead an international initiative to guide accelerated technological development, in areas such as nanotechnology, so that it benefits citizens around the world and not just a few companies.

Such an approach to opening-up is essential and it is more than likely that these measures will find support at the Third Plenum in Beijing.

From a historic perspective it is important that China live in a new era and not in the past. The global economy is much more integrated today, both in terms of information exchanges, investments and economic activity and also in the flow of natural resources.

Although bilateral relations have been the pivots of global ties in the past, it is becoming clear that a cluster approach, one that involves several nations, is more ideal to address today's challenges. The role of major transnational companies is also becoming much more important today. This role has become so powerful that governments need to collaborate to ensure that economic development is guided by long-term concerns and not quarterly profits.

It is important to remember that roots of the current international system were sown by a few nations after World War II. This system is becoming increasingly outdated and new ideas are needed.

China can make an important contribution to global economic and trade rules by teaming up with other countries, especially emerging ones, to develop and implement concrete proposals on new global governance systems.

Such a system must also shed the old industrial, centralized, growth paradigm and instead seek harmonious development and protection of nature. More focus on arts and sciences is required, while there should be less emphasis on increasing material consumption. A culture where collaboration is more important than competition, and network clusters rather than individuals are recognized, will clearly be an engine of innovation.

At the same time, China's major domestic challenges should also be seen as important opportunities. China's desire to move from a resource-heavy growth economy to a knowledge-intensive and high-quality economy requires it to set clear targets for economic development and ensure that vested interests in resource-intensive and polluting industries do not influence major policy decisions.

Targets for urban investments are also needed to support the development of smart resources, using the latest green technology and micro-financing tools. This will help create environmentally smart cities and avoid speculative bubbles.

For China, the most important thing is to ensure that the flow of ideas is not compromised by short-term economic self-interest. Most of the challenges that China faces require open and dynamic discussion among all stakeholders and avoiding rumor and false information.