President Xi Jinping\u2019s China is back out front telling foreign companies to come in, sell more, build more, and worry less.<\/p>\n
On Sunday at the China Development Forum in Beijing, Premier Li Qiang said China would push for more balanced trade with global partners after a year of tariff fights and trade tension, especially with the United States and the European Union.<\/p>\n
This of course comes just after China reported a record $1.2 trillion trade surplus for 2025, even as governments across the world have been complaining about the country\u2019s trade model, specifically its industrial overcapacity, and how much they depend on Chinese supply in key sectors.<\/p>\n
Meanwhile, America\u2019s Donald Trump last week postponed a planned trip to Beijing to meet President Xi Jinping because of the Iran war, delaying an attempt to cool tensions between the world\u2019s two biggest economies during what is only a temporary trade truce.<\/p>\n
China will be using imports, equal treatment, and market access to calm trade pressure<\/p>\n
The annual two-day forum, which ends on Monday, is one of Beijing\u2019s main stages for selling its economic story to foreign business leaders, Chinese officials, economists, and academics.<\/p>\n
Pan also pointed out that in December, Jinping added 200 sectors to a list eligible for foreign investment incentives, which include tax breaks and preferential land use, and the targeted areas were advanced manufacturing, modern services, green industries, and other high-tech sectors.<\/p>\n
Interestingly though, China\u2019s foreign direct investment fell 5.7% year on year in January to just over 92 billion yuan, or about $13.36 billion, a plunge that actually followed a broader 9.5% decline across 2025. So Beijing<\/a> is not just talking about openness because it sounds nice. It is doing it because foreign money has been pulling back.<\/p>\n China is defending its trade balance as it re-examines yuan goals and national reserve cuts<\/p>\n At the same forum, central bank governor Pan Gongsheng tried to lower the heat around the trade surplus. In a speech later published by the People\u2019s Bank of China, Pan said:-<\/p>\n \u201cAnalysing global economic imbalances requires looking not only at trade in goods but also services, and not only at the current account but also the financial account.\u201d<\/p>\n Pan added that China has the world\u2019s largest goods surplus, but also the largest services deficit.<\/p>\n Pan also said China has \u201cno need and no intention\u201d to gain a trade edge through currency depreciation, saying China\u2019s economy is forecast to reach 175 trillion yuan, or roughly $25.39 trillion, by 2030.<\/p>\n At the same time, a new report from Renmin University\u2019s International Monetary Institute reopened debate over how much foreign exchange firepower China really needs as it tries to push the yuan more deeply into global use.<\/p>\n The report, written by Sun Jiaqi and issued on Friday, said China<\/a>, which has held the world\u2019s largest forex reserves since February 2006, should consider cutting those holdings to a \u201cmoderately ample\u201d level.<\/p>\n