PBOC Governor Pan Gongsheng Attends G20 FMCBG Meeting: China to Maintain a Moderately Accommodative Monetary Policy

On August 31 and September 1, 2026, the second Finance Ministers and Central Bank Governors (FMCBG) meeting of this year under the Group of Twenty (G20) was held in Asheville, the United States. The meeting discussed topics including the global economic outlook and prospects, promoting economic growth, global imbalances, and the sovereign debt of developing countries. Pan Gongsheng, Governor of the People's Bank of China (PBOC), attended the meeting and delivered remarks.

Participants held that global economic growth still faces multiple risks and challenges while remaining resilient. To foster a stable and predictable environment for growth, countries should strengthen policy coordination and reduce the uncertainty facing market participants. Participants supported stronger mutual learning through the G20 finance track to address obstacles to economic growth. Participants also called on the G20 to enhance cooperation in supporting developing countries in resolving debt issues, and urged surplus and deficit countries to work together to ease global imbalances.

Governor Pan pointed out that trade frictions and protectionism are dragging on the global economy by affecting supply chains, pushing up inflation, and disrupting market expectations. All parties should firmly uphold multilateralism, make full use of the G20 finance track, strengthen macroeconomic policy coordination, and jointly tackle global risks and challenges. The resolution of sovereign debt issues should adhere to the principle of common action and fair burden-sharing. The G20 should play a leading role in ensuring that all parties effectively implement the principle of comparability of treatment under the Common Framework. Economic growth is the fundamental way to resolve the debt problems of developing countries and restore debt sustainability. Internationally, rising trade protectionism, the proliferation of national security concerns, and unpredictable policy environments are important causes of the aggravation of global imbalances in recent years. Addressing global imbalances requires all countries to advance their own structural reforms: deficit countries should reduce fiscal deficits and raise their national saving rates, while surplus countries should appropriately boost consumption and investment growth. At the same time, multilateralism and international cooperation should be upheld. Addressing global imbalances should focus on medium-term commitments, and all countries should formulate medium- and long-term policy plans with clear commitments that are firmly implemented, avoiding repeated policy reversals.

Governor Pan stated that China's economy is running generally stable and improving, with continuous structural optimization and steady new progress in high-quality development. Financial markets are operating smoothly, and the fundamentals and supporting conditions for the economy's long-term sound growth remain unchanged. The Chinese government adheres to and continues advancing the transformation and upgrading of its economic structure, making this a strategic priority of the 15th Five-Year Plan. China has never deliberately pursued a trade surplus. It remains committed to expanding domestic demand and to high-standard opening up, providing new opportunities for all parties through China's vast market and contributing to a new round of dynamic global economic equilibrium. The People's Bank of China will continue to advance the transformation of its monetary policy framework, improve the interest rate system, and continue to implement a moderately accommodative monetary policy, fostering a sound monetary and financial environment for the steady growth of China's economy and the smooth functioning of its financial markets.