China’s central bank governor, Pan Gongsheng, has issued a stark warning about the impact of U.S. tariffs on developing countries, emphasizing that such measures threaten global economic stability and growth.
At the 51st Meeting of the International Monetary and Financial Committee (IMFC) in Washington, D.C., Pan highlighted the fragility of the current global economic recovery. He pointed out that the “recent abuse of tariffs by the United States has severely violated the legitimate rights and interests of other countries,” undermining the multilateral trading system.
Pan stressed that these tariff policies have not only caused significant fluctuations in global financial markets, especially in advanced economies, but have also posed grave challenges to emerging market economies and developing countries. “It is urgent for countries to strengthen macroeconomic policy coordination,” he urged, calling for support of a more open, inclusive, and balanced economic globalization.
China, according to Pan, is committed to upholding true multilateralism. “We are advocates for economic globalization and free trade,” he stated, reaffirming China’s role as a defender and supporter of the World Trade Organization (WTO). He also emphasized China’s willingness to deepen cooperation with the International Monetary Fund (IMF) to safeguard global economic and financial stability.
A significant part of Pan’s remarks focused on the urgency of advancing IMF quota reform. He described the realignment of quota shares as critical for enhancing the IMF’s legitimacy and effectiveness. “We call on all parties to complete their domestic procedures without delay,” he said, referring to the promised quota increase in the 16th General Review of Quotas (GRQ). He also urged for accelerated preparations for the 17th GRQ to achieve meaningful realignment as soon as possible.
Meanwhile, Chinese Finance Minister Lan Fo’an, attending the World Bank’s 111th meeting of the Development Committee, echoed similar concerns. He noted that protectionist trade policies pose significant risks to global poverty reduction and development efforts. “China calls on international organizations like the World Bank to advocate principles such as non-discrimination and free trade,” Lan said, emphasizing the need to uphold an open and cooperative international environment.
Lan highlighted China’s significant contribution to global economic growth, remaining around 30% in recent years. Amid complex external challenges, he assured that China would adopt more proactive and effective macroeconomic policies to achieve its annual growth targets, continuing to provide stability and momentum to the global economy.
“Adhering to our fundamental national policy of reform and opening-up, China has granted zero-tariff treatment to products from all least-developed countries with which we have diplomatic relations,” Lan added. He expressed China’s willingness to further open its doors, sharing its vast market to achieve mutual benefit and win-win outcomes.
The calls from China’s top financial officials underscore the pressing need for global cooperation to address economic challenges. As trade tensions and protectionist policies threaten global stability, China positions itself as a staunch supporter of multilateralism and open trade, urging collective efforts to safeguard the future of the global economy.
