PBOC Governor: US-China Trade Imbalance Is Problem of Both Sides
A two-day meeting of US and Chinese representatives on trade issues was over last week. The United States put forward a long list of requirements regarding trade to the Chinese side, beginning from the immediate reduction of the trade imbalance by $100 billion a year before the end of support for producers from China.
The US insists that China reduce the bilateral trade deficit by at least $200 billion by the end of 2020. Last year, the US deficit with China was $375 billion. President Donald Trump has repeatedly stated that he wants China to cut this figure by $100 billion a year.
Chairman of the People's Bank of China (PBOC) said that China's huge trade imbalance with the United States is a structural and long-term problem, and it should be viewed with rationality. In his speech, Yi Gang also called for joint efforts of the US and China to resolve the trade dispute.
As for the monetary policy of the central bank of China, the Governor of the PBOC confirmed China's commitment to its reasonable and neutral monetary policy. Yi Gang also said that PBOC does not interfere with the foreign exchange market for almost a year, and the authorities are committed to the market exchange rate reform.