On the Dash:
- China aims to expand imports and rebalance trade after posting a $1.2 trillion surplus in 2025.
- Foreign direct investment fell 5.7% in January to just over 92 billion yuan after a 9.5% drop in 2025.
- Beijing is expanding incentives across 200 sectors to attract foreign business and ease global concerns.
China’s Premier Li Qiang on Sunday pledged to further open the country’s economy to foreign companies and pursue more balanced trade, following a year of heightened trade tensions with the United States and European Union.
Speaking at the China Development Forum in Beijing, Li said China will import more high-quality foreign goods and work with global partners to promote more balanced trade growth and expand overall global trade.
The remarks come after China reported a record $1.2 trillion trade surplus for 2025, raising concerns among global trading partners about trade imbalances, overcapacity and reliance on Chinese exports.
While Li did not directly address the surplus, his comments suggest Beijing is seeking to ease tensions as it maintains a temporary trade truce with the United States. A planned meeting between U.S. President Donald Trump and Chinese President Xi Jinping was recently delayed due to the Iran war.
China’s central bank governor Pan Gongsheng said global imbalances should be viewed more broadly, noting that while China has the largest goods surplus, it also has the largest services deficit. He added that China does not intend to gain a competitive advantage through currency depreciation.
China is also working to reverse the decline in foreign investment. Foreign direct investment fell 5.7% year over year in January to just over 92 billion yuan ($13.36 billion), following a 9.5% decline across 2025.
To attract more capital, Beijing in December added 200 sectors eligible for foreign investment incentives, including tax breaks and preferential land use, with a focus on advanced manufacturing, modern services, and green and high-tech industries.
Li said foreign companies would be treated the same as domestic firms, aiming to boost confidence among global investors. Commerce Minister Wang Wentao also told multinational executives that China would strengthen intellectual property protections and improve policy transparency.
