China backs IMF scrutiny of advanced economies’ fiscal risks

China has backed stronger International Monetary Fund scrutiny of fiscal risks in major advanced economies, with People’s Bank of China Governor Pan Gongsheng urging closer examination of how those risks spread across borders. Economic Times Markets, citing Reuters and a Chinese central bank statement, reported his remarks on October 19.

Pan spoke at a meeting of the International Monetary and Financial Committee during the IMF and World Bank annual gatherings in Bangkok. He called for more attention to fiscal vulnerabilities and to the financial forces shaping imbalances across the global economy.

Debt pressures and cross-border finance

The report described a broad selloff in global bond markets as borrowing costs rose against a backdrop of persistent fiscal deficits, growing government debt and swings in investor sentiment. It also linked heavy spending on artificial intelligence infrastructure to greater competition for financing, adding pressure to bond markets.

Pan urged the IMF to examine global imbalances more deeply, particularly the role of financial factors such as cross-border capital flows. His emphasis extended beyond national debt positions to the international consequences of financing conditions.

According to the central bank statement cited in the report, Pan also reaffirmed China’s support for the multilateral trading system and its opposition to protectionist measures.

IMF also presses China on its growth model

The IMF’s scrutiny is not confined to advanced economies. Managing Director Kristalina Georgieva had also called on China to move away from export-led growth and strengthen domestic consumption, the report said.

The institution has repeatedly urged Beijing to raise household spending and reduce its reliance on exports and investment to address structural imbalances. Those recommendations sit alongside its broader concerns about sustainable public finances, trade tensions and uneven global growth.