China Defends Massive Export Surge: ’This Isn’t a Global Domination Play’

Beijing pushes back on trade hegemony claims as export numbers hit historic highs.

Subheader: The Dragon's Delivery Dilemma

Chinese officials dismiss accusations of economic imperialism while container ships leave ports at record pace. 'We're just really good at making things,' claims Commerce Ministry spokesperson—conveniently ignoring state subsidies propping up industries.

Subheader: Trade Winds Blow East

Western analysts remain skeptical as Chinese exports continue swallowing market share. 'Totally organic growth,' insists Beijing—right before announcing another round of export tax rebates. Meanwhile, Wall Street banks quietly increase yuan holdings (just in case).

Closer: Whether it's strategic expansion or just capitalist efficiency with socialist characteristics, one thing's clear—the world's shopping carts are stamped 'Made in China.' And if you believe this isn't about geopolitical leverage, we've got some Evergrande bonds to sell you.

Exports push surplus, but not strategy

Even though exports helped drive recent quarterly growth, Liao insisted that’s not part of a grand plan to take over global trade. China logged a $586 billion trade surplus in the first half of the year, partly because exporters rushed to ship goods ahead of new tariffs. Liao said some of that momentum might cool, but economists still expect the annual surplus to pass $1 trillion.

He pointed to long-term data showing that domestic consumption is doing the heavy lifting. In the last four years, household and local demand accounted for 86.4% of GDP growth, with consumption alone making up 56.2%. That’s up from the 2016–2020 average by over eight percentage points.

Liao said, “We are steadily advancing toward an economic model driven by consumption, while at the same time maintaining a relatively balanced foreign trade.”

Some officials in the U.S. aren’t buying that message. Treasury Secretary Scott Bessent recently told Congress that China’s manufacturing-goods surplus is almost 2% of global GDP, about twice what Japan had at its 1990s peak. He claimed Beijing was “trying to export their way out” of its real estate crisis, and labeled China “the most imbalanced economy in the history of the world.”

Beijing boosts local spending to shift model

Liao didn’t respond directly to Bessent’s remarks. But he pushed back hard on the idea that high production means overcapacity. “Just because China holds a large market share in certain products doesn’t mean it should be accused of overcapacity,” he said. “Such claims are oversimplifications and fail to capture the full reality.”

To support that shift toward consumption, the Chinese government has gone all in on stimulus. They doubled the issuance of ultra-long sovereign bonds, pumping 300 billion yuan ($41.8 billion) into the economy.

Most of that was spent in the first half of the year, encouraging purchases of electronics, home goods, and cars. Liao said this MOVE supported sales worth nearly ten times the subsidy amount.

At the same time, Beijing plans to expand service industries and develop the green and digital sectors to push more people into better-paying jobs. That, they hope, will increase buying power across the country. Liao also said they’re boosting social safety nets like pensions to keep consumer spending stable over time.

Critics still point to China’s current-account surplus, which stood at 2.2% last year. But Liao insisted that figure is reasonable by global standards and doesn’t signal overreach. “The share of its shipments worldwide is not excessively high,” he said.

The timing of all this matters. Trump’s trade war continues to push uncertainty into the system, and China is scrambling to keep internal demand strong. The country’s efforts to lock in economic transformation are happening just as global forecasts are getting slashed.

There’s also the politics. Liao has been a major player in trade negotiations with the U.S., helping broker two separate truces, one in Geneva and another in London, earlier this year. His comments came just before a fresh round of talks between both countries is expected.

At the end of the G-20 meeting, the group released a joint statement calling for more global coordination. Liao supported it and said it shows countries can still find common ground. “It sends a strong message that countries are committed to better communication, closer coordination and working together in a spirit of unity,” he told Bloomberg.

He added that China still supports multilateralism and wants the G-20 to play a stronger role during this shaky moment in the global economy. “At a time when the global economy is facing so much uncertainty and so many challenges, the G-20 should play an even greater role,” Liao said.

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