China's Economy Grew by 4.5% Amid High Trade Surplus
China's foreign trade surplus for January–September reached $938 billion amid weak domestic demand.
In July–September, China's GDP grew by 4.5% year-on-year. This was higher than the April–June pace, when the economy increased by 4.3%.
A prolonged downturn in the real estate market has reduced household wealth and prompted residents to save more. Increased U.S. tariffs have limited some bilateral trade, after which China has more actively sought markets in Southeast Asia, Latin America, and Europe.
A trade deficit of over $1.1 billion per day led to an agreement with Beijing to roughly halve imports of Chinese hybrid vehicles over the next few years.
Cornell University economist Eswar Prasad believes that due to its sustained and significant trade surplus, China has transformed from a driver of global economic growth into a factor restraining it. The Governor of the People's Bank of China, Pan Gongsheng, stated that countries with trade deficits and surpluses must work together to eliminate trade imbalances.
