China Perspectives
China channels trade surplus into outbound investment, economist says
Updated: Sep 22, 2026
By Jiang Xueqing and Zhu Jingyi
chinadaily.com.cn
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China has channeled its trade surplus back to the rest of the world through capital outflows and foreign investment, said Guan Tao, chief economist at Huafu Securities.
Today, China's outstanding outbound direct investment assets account for 30 percent of its total foreign assets, which is close to the proportion of its foreign reserve assets, Guan said at the 2026 Tsinghua PBCSF Chief Economists Forum in Beijing on Saturday.
"In other words, China has not simply accumulated the proceeds from its trade surplus. It has put those funds to work through overseas investment, supporting local development in countries around the world," he said.
Zheng Zihang contributed to this story.
Contact the writers at jiangxueqing@chinadaily.com.cn
