Guan Tao, chief economist of Huafu Securities, said at the 2026 Tsinghua Wudaokou Chief Economist Forum held in Beijing on Saturday that China fed back its trade surpluses to the rest of the world through capital outflows and foreign investment. Currently, China's outward direct investment asset balance accounts for 30% of total foreign assets, which is close to the share of its foreign exchange reserves in foreign financial assets. Instead of hoarding the money earned from the trade surplus, China invested this money to support local construction.

Zhitongcaijing · 2d ago
Guan Tao, chief economist of Huafu Securities, said at the 2026 Tsinghua Wudaokou Chief Economist Forum held in Beijing on Saturday that China fed back its trade surpluses to the rest of the world through capital outflows and foreign investment. Currently, China's outward direct investment asset balance accounts for 30% of total foreign assets, which is close to the share of its foreign exchange reserves in foreign financial assets. Instead of hoarding the money earned from the trade surplus, China invested this money to support local construction.