China’s trade surplus reached almost $1 trillion last year, with exports exceeding imports on a massive scale. The country’s vast exports, which include everything from cars to solar panels, have been booming as its domestic economy struggles. This has offset some of the harm from a housing market crash that has scarred businesses and consumers.
The export-driven growth has drawn criticism from countries around the world, with industrialized and developing nations alike imposing tariffs to slow the tide. China has retaliated in kind, bringing the world closer to a trade war that could further destabilize the global economy.
President-elect Donald Trump has threatened to take action against China’s state-owned banks, which he says are investing excessively in factory capacity. However, many importers find that China remains the most competitive place to buy goods.
The widening of China’s trade surplus accounted for up to half the entire country’s economic growth last year. Investment in new factories for exports represented much of the rest of the growth. With its massive manufacturing capabilities, China now produces about a third of the world’s manufactured goods.
The question is whether China can maintain its lead if other countries raise tariffs. Yet many importers find that China remains the most competitive place to buy goods due to its low costs and efficient production processes.
Source: https://www.nytimes.com/2025/01/12/business/china-trade-surplus.html