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US-China trade truce ‘better than expected’ but issues remain, says governor of Chinese central bank
- Yi Gang, of the People’s Bank of China, was speaking at an event in Helsinki organised by the Bank of Finland
- He said he will remain cautious, but thinks the world’s two largest economies can solve their problems ‘one by one’
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People’s Bank of China Governor Yi Gang said the result of the G20 meeting over the weekend was “a little bit better” than expected, but stressed that difficulties remain ahead in solving trade tensions with the US.
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At an event on Monday in Helsinki, Yi said he will remain cautious in the future because difficulties remain in structural and fundamental issues, though the road map for trade talks agreed by Presidents Donald Trump and Xi Jinping in Osaka is constructive.
“But as long as the two largest economies have more or less normal trade relationship, we can continue the negotiation, we can solve problems one by one, and we can address each side’s priority concerns better and keep the trade relationship more or less at the working level,” Yi said.
On the domestic economy and policy settings, Yi said the central bank’s interest rates are at a comfortable level, economic growth is close to its potential and the current policy stance is enough to deal with different situations. Yi’s comments signal that policymakers won’t necessarily adopt broader easing measures if the risks from the trade war remain constrained.
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