China's high-quality development drives global economic rebalancing
People's Bank of China Governor Pan Gongsheng outlined China's high-quality development strategy and its contribution to global economic rebalancing at the 2026 China Development Forum. He addressed global economic imbalances, China's industrial competitiveness, and the nation's economic transformation.
China's three rounds of global rebalancing
Since the beginning of this century, the global economy has undergone three major rounds of dynamic balancing, with China actively participating and contributing.
After its WTO accession (2001-2007), China's low-cost advantage expanded global supply and eased inflation.
Following the 2008 financial crisis (2008-2017), China's domestic demand expansion fueled global growth and averted deflation, contributing around 30 percent to global economic growth.
Post-COVID-19, China maintained stable supply chains, aiding global price stability amidst rising inflation and protectionism.
Domestically, consumption's contribution to growth rose from 37 percent in 2010 to 52 percent in 2025, while the current account surplus declined to below 2 percent of GDP.
Driving growth through innovation and green transition
China is actively transforming its economic growth model for quality and sustainability.
The 15th Five-Year Plan targets 4.5-5 percent growth, prioritizing domestic demand, consumption, and services sector development.
Strategic focus areas include sci-tech innovation, with R&D expenditure ranking second globally.
Green transformation is accelerating, building the world's largest renewable energy system and targeting carbon peak by 2030 and neutrality by 2060.
Improved economic governance balances government and market roles, fostering a unified national market.
Industrial competitiveness is driven by its super-large market, complete industrial chains, abundant skilled labor, and sustained R&D investment.
Balancing growth with global stability
The PBOC's accommodative monetary policy supports China's structural transformation, balancing real economy needs with financial stability.
The managed floating exchange rate, with RMB appreciation, clearly rejects currency depreciation for trade competitiveness.
This positions China as a responsible actor in global rebalancing, prioritizing long-term stability over short-term gains.