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China's Trade Surplus Soars, Sparks RMB Concerns

12/22/2025

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Story summary
  • China’s trade surplus reached $1.08 trillion in the first 11 months of 2025, up 22.1% from the previous year.
  • This surge raises concerns about the renminbi (RMB) undervaluation and sustainability.
  • Economists say a stronger RMB could boost imports and affect global competitors.
  • Analysts note that traditional neoclassical exchange-rate models may overlook capital flows and financial cycles.
  • Recent trends indicate the RMB depreciation reflects broader financial dynamics rather than trade fundamentals.