China: 'bigger role in global economy'

China will play a bigger role in the global economy in the next 10 years by increasing its share of the global gross domestic product from its current 10 percent to about 15 percent in 2020, said Goldman Sachs on Monday.

Jim O'Neill, chairman of Goldman Sachs Asset Management, said China's GDP is estimated to be 8 percent next year, compared with the United States' 2.5 percent and the United Kingdom's 1.8 percent.

Eight growth markets — China, India, Russia, Brazil, Indonesia, Turkey, Korea and Mexico — had about 26 percent of the 2011 global GDP share. The number will grow to about 35 percent in 2020, according to O'Neill.

Over the past decade, China's GDP grew from $1,290 billion in 2001 to $7,300 billion last year with a 10.1 percent annual growth rate.

"From late 2009 to late 2011, the country's economic policy has tightened a lot, because its biggest policy challenge is reducing inflation," O'Neill said. "It is now focused on more quality economy growth rather than GDP. In the past six months there have been some capital outflows from China, which partially reflects investors concerns about the economic slowing down there."

As China becomes a more developed economy, the yuan will become more volatile than it used to be, according to O'Neill.