China to Open Economy, Seek Balanced Trade Amid Surplus & Investment Concerns

Beijing pledged Sunday to further open its economy to foreign firms and pursue more balanced trade relationships, as the world’s second-largest economy navigates a period of trade friction and seeks to attract renewed investment. Premier Li Qiang, speaking at the China Development Forum in Beijing, stated China will import more high-quality foreign goods and work to expand global trade, according to state media reports.

The annual forum, which concludes Monday, serves as a key platform for Beijing to articulate its economic vision and investment opportunities to international business leaders, economists, and academics. It follows the release of data showing China recorded a record $1.2 trillion trade surplus for 2025.

Li’s address comes amid increasing scrutiny from global capitals regarding China’s trade practices and concerns over industrial overcapacity. While the Premier did not directly address the surplus figure, his commitment to more balanced trade suggests an acknowledgement of the potential for the imbalance to strain international relations, particularly as China and the United States navigate a period of tentative trade stability.

Efforts to ease tensions between Washington and Beijing were recently complicated by the postponement of a planned trip to Beijing by U.S. President Donald Trump, due to the escalating conflict in Iran, delaying a potential opportunity for further dialogue.

Alongside Li, Pan Gongsheng, governor of the People’s Bank of China, sought to address concerns surrounding the trade surplus. According to a transcript published by the central bank, Pan argued that a comprehensive analysis of global economic imbalances must consider trade in both goods and services, as well as current and financial accounts. He asserted that China, while maintaining the largest goods surplus globally, also records the largest services deficit. Pan further stated that China has “no need and no intention to gain trade competitive advantage through currency depreciation.”

China is actively working to reverse a recent decline in foreign direct investment (FDI), which fell 5.7% year-on-year to 92 billion yuan ($13.36 billion) in January, following a 9.5% drop throughout 2025. In December, Beijing expanded the list of sectors eligible for foreign investment incentives – including tax breaks and preferential land use policies – to encompass 200 additional areas, with a focus on advanced manufacturing, modern services, and green technologies.

Li emphasized that foreign firms operating in China would be treated on par with domestic companies, fostering a business environment where enterprises from all nations can “develop with confidence and realise their ambitions in China.” Commerce Minister Wang Wentao reinforced this message in a separate meeting with leaders from the U.S. Pharmaceutical industry, assuring them of strengthened intellectual property protection and increased policy transparency.

Apple CEO Tim Cook, delivering a keynote address, affirmed the company’s continued commitment to collaborating with Chinese suppliers to drive industry advancements, according to state media. Senior executives from a range of multinational corporations, including Samsung Electronics, Volkswagen, Broadcom, Siemens, BASF, and Novartis, are also participating in the forum. Representatives from major financial institutions, such as HSBC, UBS, and Standard Chartered, are also in attendance.

Premier Li Qiang also met with friendly organizations from the United States in September 2025, stating that the China-U.S. Relationship is the most vital bilateral relationship in the world and that the two countries should become partners and friends.