Global Financial Stability at Risk Amid US-China Trade Tensions

Amidst US-China trade tensions, China's central bank governor criticized the US for destabilizing global finance through tariff abuse. Pan Gongsheng called for increased policy coordination and trade liberalization. China signals potential thawing in trade frictions but maintains a firm stance on economic policies and exchange rate management.

In a pointed critique, the governor of China's central bank, Pan Gongsheng, has accused the United States of jeopardizing global financial stability through its 'recent abuse' of tariffs. Speaking at the close of the International Monetary Fund's steering committee meeting, Pan's comments reflect growing unease over the protracted trade war between the two largest economies.

The US's tariff measures have not only violated international rights but have also disrupted the global economic framework, Pan underscored. He emphasized the need for collective efforts to reinforce policy coordination and push forward trade liberalization to counteract recent financial market volatility and its threat to emerging markets.

China has responded by exempting several US imports from high tariffs, hinting at a possible thaw in relations despite US President Donald Trump's claims of ongoing negotiations. In line with domestic and international economic shifts, China's central bank will adjust its reserve requirements and policy rates, aiming to ensure market stability and affordable financing for the real economy, Pan stated.

(With inputs from agencies.)