The US Senate has adopted long-awaited reforms to give emerging economies a greater say in how the International Monetary Fund (IMF) is managed.
China's voting rights will rise to 6%, from 3.8% and IMF resources will double to about $660bn. This is the biggest shake-up since the IMF and the World Bank were set up to manage the post-World War Two economy. The IMF reforms were agreed by its 188 members in the aftermath of the world financial crisis in 2010.
As China's voting rights rise, the US will see its share drop from 16.7% to 16.5%. The US also retains its veto power. India's voting rights will rise to 2.6% from the current 2.3%. The biggest losers are European economies which will see their voting rights diminished. But Republicans in the US Congress had been concerned at the diminishing US influence.
IMF chief Christine Lagarde hailed the US adoption as a "a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability".
And China's Central Bank said the reform "will improve the representation and voice of emerging markets and developing countries in the IMF and is conducive to protecting the IMF's credibility, legitimacy and effectiveness".
Last month, the IMF decided to include China's currency, the Renminbi, as a reserve currency, alongside the US dollar, the euro, the yen and the British pound.