The quantitative easing policy is helpful in strengthening external demand and increasing exports to Europe, and Europe is one of China’s main trade partners, Pan Gongsheng, deputy governor of People’s Bank of China, said at a news conference on Jan 23.

Meanwhile, it will strengthen the value of US dollar and increase the pressure on yuan to depreciate against the dollar, Pan said.

The global capital flows will face readjustment, Pan said, adding that capital outflows from the European countries may come into the US market.

But he added that more uncertainties in the capital market will be seen in the near future.

China’s central bank understands the action of the European Central Bank, Pan said, expressing the hope that both sides should strengthen communication about policy coordination.