People’s Bank of China Governor Pan Gongsheng called for joint action by deficit and surplus economies to address global imbalances, arguing that exchange rate adjustment alone cannot resolve them. In meetings held during the International Monetary Fund and World Bank Annual Meetings with European Commissioner for Economy and Productivity Valdis Dombrovskis, European Central Bank President Christine Lagarde and Eurogroup President Kyriakos Pierrakakis, Pan said exchange rates reflect factors including economic growth, monetary policy, financial markets, geopolitics and unexpected risk events, and do not have a simple linear relationship with current account positions. Pan said China would continue expanding domestic demand and shifting its growth model under the 15th Five-Year Plan, combining investment in physical assets with investment in people, developing services and advancing structural reforms. Both sides supported closer macroeconomic policy coordination and monetary and financial cooperation, including through the China-EU Financial Working Group and the annual central bank governors’ meeting mechanism established in 2025. The European representatives said the EU would increase investment, deepen internal market integration and raise productivity and long-term competitiveness.
People’s Bank of China Governor Pan Gongsheng urges shared action beyond exchange rate adjustment to address global imbalances
People’s Bank of China Governor Pan Gongsheng told senior EU officials that deficit and surplus economies must jointly address global imbalances rather than rely on exchange rate adjustment. China plans to expand domestic demand and pursue structural reforms, while both sides backed closer policy coordination through existing China-EU financial and central bank mechanisms.