China’s Central Bank Criticizes U.S. Tariffs

WASHINGTON (Reuters) – China’s central bank governor criticized the U.S. for threatening global financial stability with its “recent abuse” of tariffs, as both countries seek to de-escalate their trade war.

Governor Pan Gongsheng of the People’s Bank of China stated that the U.S. tariffs have violated the legitimate rights and interests of other countries, undermined the multilateral governance system, and negatively affected the global economic order. This, according to Pan, has led to severe impacts on global markets, threatening financial stability and challenging emerging nations.

He emphasized the need for stronger policy coordination among countries to promote trade liberalization. Despite the tension, China has exempted some U.S. imports from tariffs, signaling a potential easing of the trade conflict, although Beijing dismissed President Donald Trump’s claims about ongoing negotiations.

Pan also mentioned that the central bank will adjust the reserve requirement ratio and policy rate as necessary, aiming to maintain liquidity and lower financing costs for the economy. He stated that China would allow the market to influence exchange rates while keeping the RMB stable at a reasonable level.