Central Bank Governor: China never deliberately pursues trade surplus

The G20 will hold its second meeting of finance ministers and central bank governors this year in Asheville, USA from August 31 to September 1, 2026. The meeting discussed topics such as the global economic situation and prospects, promoting economic growth, global imbalances, and sovereign debt of developing countries. Pan Gongsheng, the Governor of the People's Bank of China, attended the meeting and delivered a speech.

China never deliberately pursues a trade surplus

Pan Gongsheng pointed out in his speech at the conference that the rise of trade protectionism, the generalization of national security issues, and the unpredictable policy environment are important reasons for the intensification of global imbalances in recent years. Resolving global imbalances requires countries to promote their own structural reforms. Deficit countries reduce their fiscal deficits, increase their savings rates, while surplus countries moderately promote consumption and investment growth. At the same time, we must adhere to multilateralism and strengthen international cooperation. Addressing global imbalances should focus on medium-term commitments. All countries should formulate medium - and long-term policies and programmes, make clear commitments and firmly implement them, and avoid "turning over Shaobing (Baked cake in griddle)" back and forth.

The Chinese government insists on and continues to promote the transformation and upgrading of the economic structure, and regards this as a strategic focus of the 15th Five Year Plan. China has never deliberately pursued a trade surplus, but insists on expanding domestic demand and high-level opening up to the outside world, providing new opportunities for all parties through the Chinese market and contributing to the new round of global economic dynamic balance.

China has no intention of gaining trade competitive advantage through currency depreciation

Pan Gongsheng mentioned in his speech that in recent years, with the transformation and upgrading of export structure, the bargaining power and exchange rate risk management ability of enterprises have been continuously enhanced, and the sensitivity of China's trade to exchange rates has significantly decreased. At the same time, foreign trade enterprises are increasingly using exchange rate hedging tools, and the proportion of RMB in trade settlements is constantly increasing, further reducing the sensitivity of trade to exchange rate fluctuations. China has no need or intention of gaining trade competitive advantage through currency depreciation.

China implements a managed floating exchange rate system, insisting on the decisive role of the market in the formation of exchange rates, while preventing market "herd behavior" and self reinforcing irrational expectations.