(Bloomberg) -- China’s central bank Governor Yi Gang said the nation is seeking to solve trade tensions with the U.S. constructively and will continue to open up its services industry, especially the finance sector.
The risks from the trade conflict are “significant,” hurting global growth and causing uncertainty in financial markets, Yi said at a Group of 30 international banking seminar held on the sidelines of the International Monetary Fund and World Bank’s annual meetings in Bali on Sunday.
“The trade tensions have been a problem because it causes negative expectations, it creates uncertainties so people are nervous,” he said. “There are tremendous uncertainties ahead of us.”
Yi said China will step up reforms and open up its economy further, while working to improve the protection of intellectual property rights. He said China’s current-account surplus has been narrowing over the years and there are parts of trade between China and the U.S. that aren’t being reflected in the data, such as U.S. subsidiary companies that produce and sell in China.
Yi reiterated that China’s monetary policy is prudent with a neutral bias, and it has "plenty room" to adjust policy if needed.
--With assistance from Michelle Jamrisko.
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