Economy March 22, 2026

China Pledges Greater Market Access and More Balanced Trade After Record Surplus

Beijing vows to welcome foreign firms, boost imports of high-quality goods and shore up foreign investment amid global concerns over trade imbalances

By Sofia Navarro
China Pledges Greater Market Access and More Balanced Trade After Record Surplus

At the China Development Forum in Beijing, Premier Li Qiang said China will further open its economy to foreign companies, expand imports of high-quality goods and work with partners to promote balanced trade, remarks that follow a record $1.2 trillion trade surplus for 2025. Central bank governor Pan Gongsheng and other senior officials sought to address international concerns about imbalances and to encourage foreign direct investment after recent declines.

Key Points

  • Premier Li Qiang pledged to further open China's economy to foreign firms, increase imports of high-quality foreign goods and promote balanced trade development.
  • Central bank governor Pan Gongsheng highlighted the need to assess global imbalances across goods, services, current and financial accounts, noting China has the largest goods surplus and largest services deficit and denying any intent to use currency depreciation for trade advantage.
  • Beijing is trying to stem a decline in foreign direct investment after FDI fell 5.7% year-on-year to just over 92 billion yuan in January, and has added 200 sectors to incentive lists focused on advanced manufacturing, modern services and green and high-tech industries.

BEIJING - Chinese Premier Li Qiang used the platform of the China Development Forum to reiterate Beijing's intention to open markets further to foreign firms and to pursue a more balanced pattern of trade with global partners. Speaking at the annual two-day forum in Beijing, Li said China would "import more high-quality foreign goods" and would cooperate with other parties to "promote optimised and balanced trade development and expand the global trade pie," according to state media.

The China Development Forum, which runs for two days and concludes on Monday, is a regular venue for Chinese authorities to set out their economic strategy and highlight investment openings to foreign business leaders, officials, academics and economists.

Li's remarks arrive against the backdrop of a record trade surplus for China - the world’s second-largest economy reported a $1.2 trillion trade surplus for 2025 - and at a time when trade tensions and tariff disputes with the United States and the European Union have been prominent.

Officials acknowledged the diplomatic sensitivity of large imbalances. While Li did not explicitly reference the surplus in his remarks, his commitments to boosting imports and balancing trade signal an awareness that such imbalances could affect international relations, particularly as China and the United States have reached a temporary truce on trade.

Last week, U.S. President Donald Trump postponed a planned trip to Beijing to meet Chinese President Xi Jinping because of the Iran war. The postponement delayed an effort to ease tensions between the two largest economies by deferring a high-profile visit.

In a separate address at the forum, People's Bank of China Governor Pan Gongsheng sought to contextualise concerns about imbalances. "Analysing 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," Pan said, according to a transcript of his speech published by the central bank. He added that China is the country with the largest goods surplus but also the largest services deficit.

Pan also addressed currency-related concerns directly, stating that China "has no need and no intention to gain trade competitive advantage through currency depreciation," a comment aimed at calming international unease over exchange-rate-driven competitiveness.


Efforts to revive foreign investment

Chinese leaders are also pursuing measures to reverse a recent drop in foreign direct investment. FDI fell 5.7% year-on-year to just over 92 billion yuan ($13.36 billion) in January, following a 9.5% decline over the course of 2025.

To attract foreign capital, Beijing expanded the list of sectors eligible for foreign investment incentives in December, adding 200 sectors that now qualify for measures such as tax breaks and preferential land use. The additions target advanced manufacturing, modern services and green and high-tech industries.

Li emphasised parity of treatment, saying foreign firms would be treated the same as domestic enterprises, and that companies from all countries should be able to operate in China with confidence and realise their ambitions.

In meetings on the sidelines of the forum, Commerce Minister Wang Wentao told representatives of a U.S. pharmaceutical trade group and executives from five major multinational drugmakers that China would strengthen intellectual property protection and improve policy transparency.


Corporate participation and attendee list

Senior executives from a range of multinational firms attended the forum, reflecting corporate interest in China despite geopolitical friction. Apple Chief Executive Tim Cook delivered a keynote in which he said the company would continue to work with Chinese suppliers to further advance the industry, state media reported.

Executives from Samsung Electronics, Volkswagen, Broadcom Inc, Siemens, BASF and Novartis were among those present, while major financial institutions including HSBC Holdings, UBS Group and Standard Chartered also sent representatives.

Exchange-rate data cited at the forum equated $1 to 6.8857 Chinese yuan renminbi.

The statements by top government and central bank officials at the forum outline Beijing's immediate policy messaging: reaffirm openness to foreign companies, address trade imbalance concerns by pointing to broader accounts and services, and take steps to stabilise and attract foreign investment in targeted sectors. Officials and visiting executives left the forum with reiterated commitments but also with clear signals that China recognises the international sensitivities around its trade position.

Risks

  • Persistent concerns among global capitals about China's trade practices and industrial overcapacity could strain diplomatic and trade relations - a risk to export-oriented manufacturing and global supply chains.
  • Declining foreign direct investment may slow technology transfer and capital inflows into targeted sectors such as advanced manufacturing, modern services and green high-tech industries.
  • Geopolitical disruptions, such as the Iran war which led to the postponement of a high-level U.S.-China summit, can delay efforts to ease trade tensions and affect investor sentiment across multiple sectors.

More from Economy

Persistent Middle East conflict and energy shock weigh on fragile equities rally Mar 22, 2026 Israel Orders Destruction of Bridges Over Litani River, Increases Home Demolitions Near Lebanon Border Mar 22, 2026 Paper Wealth Favors Eurozone, Financial Wealth Tilts Toward U.S., UBS Says Mar 22, 2026 Oil Surge Seen as Immediate Margin Threat to Consumer Stocks Mar 22, 2026 Beijing Defends Record Goods Surplus as Officials Promise More Market Access Mar 22, 2026