Economics
Jun 9, 2026
Miao Yanliang
Whereas China’s trade surplus used to be absorbed largely by the central bank and channeled into official reserves, it is now being redeployed by private actors in search of yield. This indicates China’s progress on financial deepening and underscores markets' increasingly central role in shaping the economy.
KYOTO—China’s export engine remains remarkably powerful. The country ended 2025 with the world’s largest-ever merchandise-trade surplus—$1.2 trillion—underscoring its enduring industrial competitiveness. But that money is not going where it used to go.
