PBOC Vows To Respond To US ‘Containment,’ Echoing Xi’s Call
The People’s Bank of China said it will respond in an appropriate way to US measures to contain China, echoing a call from President Xi Jinping to defend the economy against external threats.
(Bloomberg) -- The People’s Bank of China said it will respond in an appropriate way to US measures to contain China, echoing a call from President Xi Jinping to defend the economy against external threats.
The central bank will “appropriately respond to the containment and suppression of the US and other Western countries,” it said in a statement released Wednesday following a meeting to study Xi’s speeches during the National People’s Congress session, which concluded Monday.
The statement repeated Xi’s rare direct criticism of the US last week, in which he said policies by the US and others have led to “unprecedented and severe challenges” for China’s economy.
The PBOC didn’t elaborate on what measures it could take. In Xi’s speech last week, he called on the private sector to play a stronger role in innovation and self-reliance in advanced technologies in order to bolster the economy against rising restrictions from the US.
In a separate statement on Wednesday, the State Administration of Foreign Exchange, the nation’s foreign exchange regulator, pledged to push forward the opening up of China’s capital accounts and prevent “risks of external shocks.”
Government ministries and agencies usually hold meetings after major Communist Party events in order to show their backing for the policies announced. In his first State Council meeting since becoming premier, Li Qiang said Tuesday the State Council, the nation’s cabinet, is “first and foremost a political organ” and urged the participants to implement Xi’s instructions while endorsing his supreme leadership.
The central bank also vowed to “manage the pace of credit extension well,” ensure credit growth stays “reasonable” and do its best to stabilize growth, employment and prices, according to the statement. The meeting was chaired by PBOC party secretary Guo Shuqing and attended by Governor Yi Gang, who was reappointed to his post over the weekend.
With global financial markets in turmoil following the collapse of Silicon Valley Bank, the PBOC vowed to strengthen the financial system to ensure stability and improve contingency plans. It also reaffirmed a pledge to step up support for private and small companies and push for the property market’s stable and healthy development.
Earlier on Wednesday, the PBOC injected the biggest amount of cash to its banking system in more than two years via medium-term loans to meet surging demand for credit.
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