2 days ago
China says exports reflect demand, not bid for world market dominance
BEIJING, July 20 — China is not seeking to dominate global markets, Vice Finance Minister Liao Min said on Friday while defending the country's trade practices during a G-20 gathering near Durban, South Africa.
He said most of China's production serves domestic demand, with exports only responding to overseas needs and not part of a wider strategy to flood foreign markets, Bloomberg reported.
Liao said China's recent economic performance, including 5.3 per cent growth in the first half of the year, contributes stability at a time when global markets face uncertainty.
'China's certainty and stability are the greatest contributions it makes to the world today,' Liao said, stressing the country's shift toward a consumption-led economy.
He noted that 86.4 per cent of China's growth came from domestic demand and that consumption alone drove an average of 56.2 per cent of GDP gains over the past four years.
The government is continuing to promote consumption through measures such as 300 billion yuan in special sovereign bonds aimed at boosting sales of electronics, home appliances and cars.
China recorded a goods-trade surplus of about US$586 billion (RM2.5 trillion) in the first half of 2025, partly due to exporters accelerating shipments amid fears of new US tariffs.
While this export momentum may slow later in the year, economists believe China could still post a record annual surplus exceeding US$1 trillion.
Liao argued that China's current-account surplus stood at 2.2 per cent last year, a figure he called globally reasonable and not indicative of excessive trade dominance.
US Treasury Secretary Scott Bessent has accused China of extreme trade imbalances and suggested the country is trying to export its way out of a property crisis.
Liao rejected overcapacity claims as oversimplified, saying large market share in some sectors does not prove China is distorting global trade.
He also voiced strong support for multilateralism and praised the G-20 finance ministers' joint communique, calling it a sign of continued global cooperation despite trade tensions.
