Pan Gongsheng outlines China's role in global economic rebalancing
People's Bank of China Governor Pan Gongsheng addressed the 2026 China Development Forum, outlining China's contributions to global economic rebalancing and its pursuit of high-quality domestic development. He detailed three rounds of global rebalancing and China's structural adjustments.
China's three-stage rebalancing act
Pan Gongsheng outlined China's significant participation in three major rounds of global economic rebalancing since the turn of the century.
Following its WTO accession (2001-2007), China's low-cost integration expanded global supply and eased inflation.
During the 2008-2017 period, China's vigorous expansion of domestic demand and imports fueled global growth, consistently contributing around 30 percent to the world economy.
Post-COVID-19, China maintained stable supply chains, aiding global price stability amidst rising protectionism.
Domestically, consumption's contribution to economic growth increased from 37 percent in 2010 to 52 percent in 2025, while the current account surplus declined from 10 percent of GDP in 2007 to below 2 percent on average over the past decade, reflecting profound structural adjustments.
Innovation, market power, and green shift
Governor Pan detailed the drivers of China's industrial competitiveness: decades of reform, a super-large market, complete supply chains, and a skilled workforce, supported by over 10 percent annual R&D growth.
He refuted claims of unreasonable government subsidies, emphasizing fair competition measures.
Pan also outlined China's shift towards a high-quality, sustainable growth model, prioritizing domestic demand, sci-tech innovation, and green transformation, aiming for carbon neutrality by 2060.
These efforts are embedded in the 15th Five-Year Plan.
Steadfast support for a complex transition
The People's Bank of China's commitment to an appropriately accommodative monetary policy is crucial for navigating China's ambitious structural transformation.
While balancing multiple objectives, this supportive stance provides essential stability for domestic growth and global rebalancing efforts.
However, the inherent flaws of the international monetary system and rising protectionism present significant external challenges to these domestic endeavors.