China needs a coordinated policy package of currency appreciation, tariff cuts and elevated labour benefits to rebalance its massive trade surplus, outspoken former Chongqing mayor Huang Qifan said on Tuesday.
Speaking at this year’s Tsinghua PBCSF Global Finance Forum in Chengdu, the capital of the southwestern province of Sichuan, Huang described China’s 2025 record-breaking US$1.2 trillion merchandise trade surplus as “shocking”.
That momentum has shown no signs of slowing. China’s goods trade surplus stood at US$347.7 billion in the first four months of this year.
“We could see another US$1.2 trillion surplus this year,” Huang warned.
To address the trade imbalance, Huang proposed several measures, including a gradual appreciation of the yuan by 15 to 20 per cent over the next decade, but he stressed that the appreciation must be steady and incremental.
Such a move, he argued, would actively boost imports while raising export costs to cool down the surplus.
Beyond balancing trade, a stronger currency is also crucial for China’s long-term growth targets, he added.
