BEIJING -- China is expected to embrace more market-based reforms domestically and assume a greater leadership role globally, an economist with the Peterson Institute for International Economics said on Wednesday.

With its increasing economic dominance, China should articulate its vision for the global economic system and take the lead in solving global issues, said Arvind Subramanian, a senior fellow at the Washington-based institute and former assistant director of the International Monetary Fund (IMF)'s research department.

If China maintains its rapid economic growth, it will be "unambiguously good news" for the world, Subramanian said while attending a seminar at the National School of Development at Peking University.

China will have to respond to its partners' concerns while maintaining growth, creating a "win-win situation" for all parties involved, Subramanian said.

"China's economic dominance is not only more imminent, but also larger in magnitude and broader in scope than currently believed," Subramanian said.

He predicted that with further development, by 2030, China could reach a level of dominance nearly equal to that of the United States.

"Preserving an open economic system will require China to lead, and (will require) its economic partners to empower, not contain, China," Subramanian said.

The rise of China's currency, the yuan, means that China should have an "articulate voice" in global organizations like the IMF, Subramanian said.

"China must take the lead by contributing, and in return obtain power equivalent to the U.S and Europe," Subramanian said.

Subramanian also warned that China should solve its domestic problems and confront challenges resulting from global financial instability,rebounding protectionism and the rising cost of climate change.