Whether the renminbi is added to the SDR basket this October, a gradual transformation of the global system to accommodate China seems all but inevitable.

Although China's economy has expanded at a staggering pace over the last three decades, its growth model is now widely agreed to be exhausted. Many economists endorse a shift to consumption-driven growth propelled by gains in efficiciency.

The economic slowdown in China belies its untapped potential. The question is whether Beijing will take advantage of the cost shocks to implement necessary structural reforms.