Sustainable growth path: China needs to do more to rebalance its economy

The government in Beijing has been far too hesitant in carrying out essential reform, and is now facing the consequences of that delay

Global economic trends over the past year were shaped by one force above all: United States (US) President Donald Trump’s decision to rework trade policy by focusing on tariffs. But if he intended to force China, the world’s export superpower, into retreating from global markets, then he has failed. The country’s trade surplus crossed a record $1 trillion in the first 11 months of 2025. If anything, economic planners in Beijing should have hoped for a little more effect of the tariffs than they actually felt. As it stands, however, the year has seen China’s dependence on export as a