Beijing: China is preparing to increase exports and imports by 2026, aiming for 'sustainable' trade. China's state-run CCTV reported on Saturday that a top Chinese economic official said the country plans to expand exports and imports next year as part of efforts to promote 'sustainable' trade.
According to Thai News Agency, China's trillion-dollar trade surplus, in the world's second-largest economy, is creating tension with its trading partners and drawing criticism from the International Monetary Fund (IMF) and other observers who say China's production-oriented economic growth model is unsustainable. Han Wenxiu, deputy director of the Central Financial and Economic Affairs Commission, stated at an economic conference that China must adhere to openness, promote mutually beneficial cooperation in multiple sectors, expand exports, and simultaneously increase imports to drive sustainable development of foreign trade.
Han stated that China will support service exports in 2026, and pledged to implement measures to boost household income, increase basic pensions, and remove unreasonable restrictions on consumption. He also reiterated the government's call to control price competition that leads to deflation (deflationary price wars), also known as "involution," where companies enter into excessive and low-return competition, resulting in reduced profits.
This week, the IMF urged China to make "bold choices" by controlling exports and stimulating consumer demand. IMF Managing Director Kristalina Georgieva said at a press conference on Wednesday that China is too large to generate further growth from exports, and continued reliance on export-led growth could risk escalating global trade tensions.
Economists warn that deep-seated imbalances between production and consumption in the Chinese economy are threatening long-term growth while maintaining high short-term growth trajectories. Chinese leaders pledged on Thursday to pursue a "proactive" fiscal policy next year to stimulate both consumption and investment. Analysts expect Beijing to target growth of around 5.813 percent.