Chinese Central Bank Commits to Financial Opening, Warns of Anti-Globalist Sentiment

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A senior official from the Chinese central bank has warned of the international resurgence of anti-globalist sentiment, while stating that further opening of the financial sector will play a “huge role” in China’s future economic development.

“In recent years populism has reared its head, trade frictions have intensified, and anti-globalisation ideology has returned,” said Liu Guiping (刘桂平), deputy-governor of the People’s Bank of China (PBOC).

“In actuality this reflects a ‘zero-sum mentality’ or even a ‘negative sum mentality,’ of those unable to resolve domestic structural issues, and who attempt to shift conflicts internationally.”

Liu made the remarks on 28 November in Beijing at the “2020 China Financial Forum Academic Annual Forum” (2020中国金融学会学术年会暨中国金融论坛年会).

The PBOC deputy-governor hailed the beneficial impacts of free trade and financial opening upon the modern Chinese economy.

“The implementation of reform and opening proves that the more open a sector, the more competitive it is, and the less open a sector, the more likely it is to be backwards or to accumulate risk.

“Expansion of financial sector opening will inject new vigour into the Chinese finance sector, and be of benefit to raising its overall competitiveness, and achieving healthier, higher-level growth.

“[It] will play a huge role in the establishment of new growth conditions.”

Liu highlighted three focal points for Chinese economic and financial policy moving ahead:

  1. Driving systemised and systemic opening of the financial sector.
  2. Driving the interconnection of financial market opening and infrastructure.
  3. Cautiously advancing internationalisation of the renminbi.

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