BEIJING, Oct. 26 (Xinhua) -- BEIJING, Oct. 26 (Xinhua) -- China would strengthen international coordination on tax policies, said Chinese Finance Minister Xie Xuren at the Third International Tax Dialogue (ITD) Global Conference which opened in Beijing Monday.

    Xie said the Chinese government would "actively engage in tax policy dialogues and practical coordination with relevant countries, regions and international organizations."

    He said China understood the importance of tax as a key macroeconomic instrument. "Over the past year of global financial recession, China has launched structural tax reductions which helped the economy to recover," he said.

    The International Monetary Fund (IMF) deputy managing director Takatoshi Kato said it was time to consider what role should tax policies play in financial improvement.

    "International cooperation and coordination will be critical," he said.

    Secretary General of the Organization for Economic Co-operation and Development (OECD) Angel Gurria said tax played a crucial role in aligning financial regulations and incentives across the financial sector to ensure appropriate supervision and risk management.

    The ITD is a collaborative arrangement involving European Commission (EC), Inner-American Development Bank (IDB), IMF, OECD, United Kingdom Department for International Development (UK-DFID) and World Bank Group to encourage and facilitate discussion of tax matters among national tax officials, international organizations and a range of other key stakeholders.

    The ITD conference was first launched in 2005 and is held every two years. Theme for this year's meeting which would end Wednesday is "Financial Institutions and Instruments - Tax Challenges and Solutions."