Chinese Premier Li Qiang announced plans to further open China’s economy to foreign investment and pursue more balanced trade relationships, particularly with the United States and the European Union. The pledges came during the China Development Forum in Beijing, a two-day event concluding Monday, and follow a year marked by trade friction and tariff disputes.
Economic Context and Trade Surplus
The forum provides a platform for Beijing to present its economic vision and investment opportunities. This year’s event follows the announcement of a record $1.2 trillion trade surplus for China in 2025. Premier Li stated China will import more high-quality foreign goods and work to expand global trade.
Even as the speech did not directly address the surplus, the pledges suggest an awareness of potential disruptions to international relations. A planned meeting between US President Donald Trump and Chinese President Xi Jinping was postponed last week due to the situation surrounding the Iran war, delaying efforts to reduce tensions between the two nations.
Addressing Imbalances and Investment
China’s central bank governor, Pan Gongsheng, also addressed concerns about the trade surplus, noting that analysis should consider both trade in goods and services, as well as current and financial accounts. He affirmed that China has no intention of seeking a trade advantage through currency depreciation.
China is actively working to reverse a decline in foreign direct investment, which fell 5.7 percent year-on-year to just over 92bn yuan ($13.36bn) in January, following a 9.5 percent drop in 2025. In December, 200 sectors were added to a list eligible for foreign investment incentives, including tax breaks and preferential land leverage, with a focus on advanced manufacturing, modern services, and green technologies.
Premier Li stated that foreign firms will be treated the same as domestic ones. Commerce Minister Wang Wentao also pledged to strengthen intellectual property protection and improve policy transparency, speaking to leaders from the US pharmaceutical industry. Apple CEO Tim Cook affirmed the company’s continued collaboration with Chinese suppliers.
Executives from Samsung Electronics, Volkswagen, Broadcom Inc, Siemens, BASF, and Novartis were among those attending the forum, as were representatives from HSBC, UBS Group, and Standard Chartered.
Frequently Asked Questions
What is the China Development Forum?
The China Development Forum is an annual two-day event that allows Beijing to lay out its economic vision and investment opportunities to foreign business leaders, Chinese officials, economists and academics.
What was China’s trade surplus in 2025?
China reported a record $1.2 trillion trade surplus for 2025.
What steps is China taking to attract foreign investment?
China added 200 sectors to a list eligible for foreign investment incentives, including tax breaks and preferential land use, and pledged to treat foreign firms the same as domestic ones.
As China seeks to balance its trade relationships and attract foreign investment, what impact will these pledges have on global economic dynamics?
