China Pledges to Expand Market Access as Merchandise Trade Surplus Hits Record High

LootboxPhobia · 2026-03-22T12:29:11+00:00

People's Bank of China Governor Pan Gongsheng defended China's trade surplus at the forum, calling it a stabilizing force for global financial markets. He pointed out that the current account surplus is redistributed through outbound investment, while also mentioning that Goldman Sachs raised its forecast for the surplus. Despite external concerns, Pan emphasized that the services sector deficit helps balance the manufacturing position.

LootboxPhobia

2026-03-22 12:29:11

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Investing.com - People’s Bank of China Governor Pan Gongsheng firmly defends the country’s growing trade surplus, calling it a stabilizing force in the global financial markets.

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Speaking at the China Development Forum in Beijing, Pan Gongsheng stated that China’s current account surplus has been effectively redistributed globally through strategic outward investments by Chinese companies and financial institutions.

At the time of these remarks, China’s exports surged over 20% in the first two months of 2026, sparking concerns among international trade partners about the impact of low-cost export goods on local industries.

Trade Imbalance and Macroeconomic Stability

This imbalance has reached historic levels, with last year’s merchandise trade surplus hitting a record $1.2 trillion.

Goldman Sachs (NYSE: GS) recently revised its forecast for China’s current account surplus in 2026 from 4.1% of GDP to 4.3%, with preliminary data showing a record quarterly surplus of $242 billion.

Pan Gongsheng attributed these distortions partly to “non-economic factors,” including preemptive purchases triggered by U.S. tariffs and restrictive export controls, claiming these factors have distorted expectations among global businesses and households.

To ease mounting global tensions, Premier Li Qiang at the same forum promised to expand market access for the service sector and increase imports of high-value goods such as medical products.

China maintains the world’s largest merchandise trade surplus, but Pan Gongsheng specifically pointed out that China also has the largest service trade deficit, which Beijing sees as a necessary balance to its manufacturing dominance.

Investors remain focused on whether China’s concessions will be enough to prevent Western economies, facing a flood of Chinese industrial output, from adopting a new wave of protectionist measures.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.

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