On China's Trillion Dollar Trade Surplus | Xu Mingqi

"[China should] expand imports of products not related to national security by selectively lowering import tariffs and licensing thresholds for certain goods."

Today’s edition opens with an introduction by Max J. Zenglein, Asia-Pacific Senior Economist and Centre Leader, Asia Economy, Strategy and Finance, at The Conference Board of Asia. He is also Chair of Sinification’s board of trustees. Max was previously Chief Economist at the Mercator Institute for China Studies (MERICS). His research focuses on economic systems, industrial policy, labour markets, and the evolving dynamics of globalisation and economic security. Max is one of those people without whose support my professional path would have taken a very different turn, and to whom I remain deeply indebted. — Thomas

2025 marked another year of a record trade surplus, driven by surging exports and weak imports. For some, the surplus reflects China’s manufacturing competitiveness and is seen as vital to securing national interests amid a rapidly shifting geopolitical backdrop. For others, it points to domestic imbalances and subdued consumption, which in turn risk triggering backlash fro…