François Villeroy de Galhau: Europe and China - a key economic relationship under the pressure of great uncertainty and growing imbalances

Dear Governor Pan Gongsheng, 
Dear colleagues of the People's Bank of China, 
Da Jia Hao,  

It is a great honor and pleasure to address you today in Beijing, in your great country of China, while we meet regularly in Basel or in Washington. And today, at a moment when the global economy is undergoing profound transformations and experiencing high levels of uncertainty. Geopolitical tensions, fragmentation risks, energy and climate challenges, are reshaping the international economic landscape and testing the resilience of our economies and financial systems. In such an unpredictable environment, the relationship between Europe – including France – and China is of particular importance. Furthering our cooperation in key areas will unquestionably be a major source of growth and stability for the global economy. 

Hence, allow me today to discuss with you two major and related topics shaping the global economy: first, the evolving relationship between Europe and China (I), and second, the widening of global imbalances and the need for coordinated action to preserve global economic and financial stability (II).

I. EU-China economic relations have brought mutual benefits, but now require greater resilience and balance  

The EU and China are major players in the global economy, and our economic exchanges are among the most developed in the world. Taken together, our economies represent around one third of global GDP and one third of global trade flows (excluding intra-zone trade). Over the past decades, economic and financial ties between Europe and China have deepened.