World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala has urged China to rebalance its economic strategy away from heavy reliance on exports, warning that the country’s record trade surplus risks fuelling new waves of global protectionism.
Speaking at the Munich Security Conference on Feb 13, she said the export-driven model that supported China’s rapid expansion for decades may no longer be viable in a changing global trade environment.
Okonjo-Iweala noted that China’s $1.2 trillion trade surplus last year was unlikely to remain sustainable, arguing that global markets cannot indefinitely absorb such large imbalances. She said Beijing had benefited greatly from the multilateral trading system but now faces pressure to strengthen domestic demand and adjust its growth trajectory.
China’s trade performance comes against a backdrop of renewed geopolitical friction. Exports to the United States declined amid tensions following President Donald Trump’s return to office, although shipments to other regions increased, pushing total exports up by 5.5% in 2025 while imports stayed largely flat.
The world’s second-largest economy grew by about 5% during the year, one of its slower expansion rates in recent decades, weighed down by weak consumption and persistent problems in the property sector.
Trade relations remain fragile despite an October truce between Trump and Chinese President Xi Jinping. In January, Washington signalled plans to impose tariffs on countries trading with Iran, a move that could affect Chinese commerce. Beijing has indicated it will respond to protect its economic interests.
Concerns about widening trade imbalances have also emerged in Europe, where policymakers have encouraged China to stimulate internal demand to reduce dependence on overseas markets.
The issue is expected to feature prominently at the WTO’s next ministerial conference in Cameroon in late March, as global leaders assess rising trade tensions and the future direction of the international trading system.
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