As trade frictions and protectionism are weighing on the global economy by disrupting supply chains and fueling inflation, all countries must firmly uphold multilateralism and work collectively to tackle shared global risks and challenges, People's Bank of China (PBOC) Governor Pan Gongsheng said at the 2026 G20 Finance Ministers and Central Bank Governors Meeting.

The second G20 finance meeting of the year was held from August 31 to September 1 in Asheville, North Carolina, under the US G20 presidency. Discussions centered on the global economic outlook and prospects, promoting growth, global imbalances, and sovereign debt of developing countries.

Trade protectionism weighs on global economy

Pan pointed out that trade frictions and protectionism are disrupting supply chains, fueling inflation, and unsettling market expectations. The rise of trade protectionism, the over-politicization of national security issues, and an unpredictable policy environment are major factors behind the worsening global imbalances in recent years. Addressing global imbalances requires structural reforms by all countries — deficit countries should reduce fiscal deficits and raise savings rates, while surplus countries should moderately boost consumption and investment growth.

China has never deliberately pursued a trade surplus. It remains committed to expanding domestic demand and pursuing high-standard opening-up, offering its large market as new opportunities for all parties and contributing to a new round of global economic rebalancing, Pan emphasized.

China's economy on steady footing as structural transformation advances

Pan said China's economy is running generally stable with steady progress, and structural improvements are ongoing. The Chinese government is pressing ahead with economic structural upgrading and transformation, which has been designated a strategic priority in the 15th Five-Year Plan (2026-2030).

During the 15th Five-Year Plan period, China aims to drive growth through several key initiatives, he told the meeting. First, the country will focus on transforming its growth model, pursuing high-quality and sustainable development while investing in both people and infrastructure to boost human capital accumulation. Second, China will prioritize scientific and technological innovation to enhance productivity. Third, efforts will be made to improve the market-oriented, law-based business environment, reduce transaction costs for enterprises, stabilize expectations for market entities, and stimulate market vitality. Support for small and medium-sized enterprises will be strengthened to ensure a level playing field for all types of market players, the PBOC Governor said. Fourth, China will promote inclusive growth by improving the income distribution system and the social security system, narrowing urban-rural and regional development gaps, and balancing efficiency with equity.

Broad consensus: Strengthen policy coordination to address growth obstacles

Participants at the meeting acknowledged that the global economy faces multiple risks and challenges, but remains resilient. To achieve a stable and predictable growth environment, countries should strengthen policy coordination to reduce uncertainty for market entities. All parties support the G20 financial track in strengthening experience-sharing to address obstacles to growth. Participants also called on the G20 to enhance cooperation in supporting developing countries' debt resolution and urged both surplus and deficit countries to work together to ease global imbalances.