BEIJING: China plans to expand exports and imports next year as part of efforts to promote “sustainable” trade, a senior economic official said on
Saturday, state broadcaster CCTV reported.
The trillion-dollar trade surplus posted by the world’s second-largest economy is stirring tensions with Beijing’s trade partners and drawing criticism from the International Monetary Fund and other observers who say its production-focused economic growth model is unsustainable.
“We must adhere to opening up, promote win-win cooperation across multiple sectors, expand exports while also increasing imports to drive sustainable development of foreign trade,” Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission, told an economic conference.
China will encourage service exports in 2026, Han said, pledging measures to boost household incomes, raise basic pensions and remove “unreasonable” restrictions in the consumption sector.
China trade surplus tops USD1trn for first time on non-US growth
He restated the government’s call to rein in deflationary price wars, dubbed “involution”, where firms engage in excessive, low-return rivalry that erodes profits.
The IMF this week urged Beijing to make the “brave choice” to curb exports and boost consumer demand.
“China is simply too big to generate much (more) growth from exports, and continuing to depend on export-led growth risks furthering global trade tensions,” IMF Managing Director Kristalina Georgieva told a press conference on Wednesday.
Economists warn that the entrenched imbalance between production and consumption in the Chinese economy threatens its long-term growth for the sake of maintaining a high short-term pace.
Chinese leaders promised on Thursday to keep a “proactive” fiscal policy next year to spur both consumption and investment, with analysts expecting Beijing to target growth of around 5%.
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