China’s Ministry of Commerce released its position on the issue of so-called "overcapacity" on July 28. According to Jin10, the ministry said China has never deliberately pursued a trade surplus.
The ministry said China’s export growth comes from economies of scale and improved innovation, as well as demand from other countries’ green transition and industrialization. It said China’s exports to Europe are mainly concentrated in photovoltaic products, new energy vehicles, lithium batteries, and chemical products, and that this reflects demand for energy products driven by the green transition, as well as higher production costs for Europe’s chemical industry and others due to the energy crisis.
The ministry also said China has never deliberately pursued a larger share of labor-intensive product exports, with the share of such exports falling to 15.1% in 2025 from 20.7% in 2012. According to Jin10, it said foreign-invested companies accounted for 27% of China’s exports and 16% of China’s surplus in 2025, while surplus and profit growth were both faster than those of domestic companies.
The ministry said that although China has a large goods trade surplus, it also runs deficits in services trade and investment income, and that its current account surplus was about 3.7% of GDP, within the internationally recognized reasonable range.
STOCKS | China Says It Does Not Deliberately Pursue Trade Surplus
2026-07-28 05:04:07
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