Zhou Xiaochuan: International coordination and cooperation still need to be strengthened in areas such as climate change

GateUser-bd883c58 · 2026-04-03T08:13:31+00:00

At the Boao Asia Forum, former People's Bank of China Governor Zhou Xiaochuan pointed out that globalization has increased the demand for coordination of monetary policies among countries. He emphasized that the issue of global imbalances requires multilateral solutions and suggested using the IMF framework to address this problem, rather than U.S. tax measures. He believes that global imbalances are diverse in form, making coordination increasingly important but also more complex.

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2026-04-03 08:13:31

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March 25, 2026 (China Youth Daily Client, Hainan Boao) — “In the past, monetary policy was a country’s internal policy, and there was not a particularly strong need for policy coordination globally. However, as globalization continues to deepen, the situation has undergone significant changes.” Today, at the Boao Forum for Asia 2026 Annual Conference sub-forum titled “Strengthening Regional Linkage and Safeguarding Financial Security and Stability,” Zhou Xiaochuan, former governor of the People’s Bank of China, said that rising needs for monetary-policy coordination among countries stem from three factors: countries’ economies are increasingly interconnected and interdependent; the scale of cross-border capital flows continues to expand; to respond to financial crises; and to address global or regional economic imbalances.

But he also said that in recent years, some regional conflicts have intensified tensions among major powers, and increased countries’ attention to domestic interests rather than to the need for international coordination.

“At such a stage, I think coordination is an important issue, but it is more difficult to handle than in the past.” Regarding the areas that still have strong needs for international coordination, Zhou Xiaochuan mentioned four: climate change, payment systems, debt issues, and global imbalances.

On March 25, Zhou Xiaochuan, former governor of the People’s Bank of China, attended and spoke at the Boao Forum for Asia 2026 Annual Conference sub-forum titled “Strengthening Regional Linkage and Safeguarding Financial Security and Stability.” Photo provided by the organizer

As for global imbalances, he further analyzed that imbalances can take different forms, including imbalances in investment and imbalances in capital flows. “We need a multilateral way of addressing this, not only (taking) bilateral or regional measures.” He also noted that the United States is in a situation of such global imbalance in fact, but the United States has chosen not to use exchange-rate mechanisms or similar mechanisms to address imbalances; instead, it uses taxes to address them. “But tax issues are a tricky matter. I think we should use IMF (International Monetary Fund) framework measures to address the problem of imbalances,” he said.

Source: China Youth Daily Client

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