“Given the substantial size of China’s trade surplus, it is fully capable of absorbing current capital outflows,” Ding Shuang, Standard Chartered’s chief economist for Greater China and North Asia, said at a media briefing on Monday.“The bigger the surplus, the more outflows China can allow, leading to more headroom for broader capital account opening.”This leeway is supported by China’s resilient export engine, Ding noted, which has continued to surge this year despite disruption to the global economy caused by conflict in the Middle East, generating robust foreign exchange inflows. And the country is well-positioned to maintain this edge, he added.“China’s research and development investment, as well as policies promoting industrial-tech integration, will continue to enhance its global competitiveness over the long term, allowing the nation to sustain a substantial trade surplus,” Ding said.“The sizeable trade and current account surplus, in turn, will bolster policymakers’ confidence to further open up the capital account.”In the first half of the year, China’s exports jumped 17.6 per cent while imports rose 26.6 per cent, according to Customs data. In June alone, the trade surplus expanded to US$125.62 billion, up from US$105.43 billion in May.