China Aims for Balanced Trade Amid Record Surplus

During the China Development Forum held in Beijing on March 22, 2026, Premier Li Qiang addressed concerns regarding China's significant trade surplus, which reached a record $1.2 trillion in 2025. Li emphasized the importance of maintaining strong trade relationships, particularly during a fragile truce with the United States in their ongoing tariff dispute. "We take our trading partners’ concerns seriously and we are ready to work with all parties to promote the sound and balanced development of trade," Li stated. He also announced plans to increase imports of medical and healthcare products, digital technologies, and low-carbon services to create more business opportunities for foreign companies.

China vows more open economy, national treatment for foreign firmsBloomberg

The backdrop of Li's remarks includes a major trade war between the US and China that began in 2025 but was temporarily paused following a one-year truce agreed upon by US President Donald Trump and Chinese President Xi Jinping in October. French President Emmanuel Macron has warned that the European Union may impose "strong measures," including potential tariffs, if China does not address its widening trade imbalance with EU nations. In response to rising trade tensions, Chinese authorities have begun reducing export tax rebates for various products, including solar cells and batteries.

China vows more open economy, national treatment for foreign firmsBloomberg

Despite the robust export figures, China's economy faces challenges, including weak domestic consumption and overcapacity in several industries, particularly solar energy. The International Monetary Fund's Deputy Managing Director, Dan Katz, suggested that China could enhance domestic demand by increasing household incomes and shifting resources from industrial subsidies to social safety net programs. This shift could help stabilize the property sector and encourage consumer spending.

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Critics argue that while China is taking steps to address trade concerns, more substantial reforms are necessary to ensure balanced trade development. The ongoing conflict in the Middle East, particularly the Iran war, poses additional risks to China's economic stability, potentially leading to increased costs for fuel and raw materials, which could further squeeze profit margins for manufacturers.

China vows more open economy, national treatment for foreign firms

Li Qiang reiterated China's commitment to being a "cornerstone of certainty" and a "harbour of stability" for the global economy. He highlighted the need for technological progress and market openness to foster new economic opportunities. Meanwhile, the People’s Bank of China Governor Pan Gongsheng defended the trade surplus, stating that it supports global economic growth and financial stability.

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As China navigates these complex trade dynamics, it is expected to continue implementing measures aimed at balancing trade and addressing international concerns. The government is also likely to focus on fortifying the economy through increased spending, which has seen its fastest start since 2022.

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• “We take our trading partners’ concerns seriously and we are ready to work with all parties to promote the sound and balanced development of trade,” — Li Qiang, Premier of China

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• “has underpinned global economic growth and financial stability.” — Pan Gongsheng, Governor of the People’s Bank of China

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