China’s rising trade surplus and its global implications

China’s trade surplus has reached a record 1% of world GDP and looks set to rise further. It’s been driven, in part, by a surge in China’s exports – China has gained export market share across both low- and high-tech sectors, and with both advanced and emerging economies. Many emerging economies in Asia have preserved global market share by expanding exports to other destinations, helped by integration into Chinese supply chains. But manufacturers in advanced economies (mainly in Europe and to some extent Japan) have come under pressure, contributing to weak GDP growth and growing geopolitical tensions.