Chinese Premier Li Qiang began his first local inspection of the year in Guangdong, calling for expanded imports and more balanced trade growth after China’s trade surplus exceeded US$1 trillion, signalling Beijing’s intent to ease global trade tensions. SMU Associate Professor of Finance Fu Fangjian noted that despite conciliatory signals, China’s trade surplus is likely to keep expanding due to the strong competitiveness of its “new three” exports, with policy space mainly limited to cutting export subsidies and increasing imports from Europe. Assoc Prof Fu said the trip underscores Beijing’s dual push to stabilise external trade relations while doubling down on domestic demand, technological upgrading and private sector support.
