Premier Li Qiang pledged to address worries trade partners have over China’s large surplus, underscoring Beijing’s concern the issue could disrupt relations with more nations during a fragile truce with the US over the issue.
“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 said in a keynote speech at the China Development Forum in Beijing on Sunday.
“We will also further widen market access for the services sector and increase imports of medical and health care products, digital technologies and low carbon services to provide more business opportunities for foreign companies,” he added.
China racked up a record trade surplus of $1.2 trillion last year and exports continued to surge in the first two months of the year, exacerbating worry in many countries around the world about the future of their own industries.
The US and China engaged in a major trade war in 2025 that has been put on pause with a one-year truce reached by President Donald Trump and Chinese leader Xi Jinping in October. In December, French President Emmanuel Macron warned that the European Union may be forced to take “strong measures” against China, including potential tariffs, if Beijing fails to address its widening trade imbalance with the bloc.
Authorities in Beijing have taken some steps to address the rising trade tensions, including by reducing export tax rebates for hundreds of products such as solar cells and batteries.
China’s manufacturing strength comes with the economy troubled by weak domestic consumption. The nation’s industries including solar are also struggling with overcapacity and intense price competition.
Beijing has made progress in curbing so‑called involution‑style competition, Li said.
The Iran War is also increasing risks for China’s economy. Higher fuel and raw material costs could further squeeze profit margins for manufacturers.
China has already set its most modest annual growth target since 1991. Beijing appears to be taking steps to fortify the economy, with government spending off to its fastest start to any year since 2022.
https://www.msn.com/en-us/money/markets/china-s-premier-vows-to-back-balanced-trade-as-exports-surge/ar-AA1Z8bm5
