# Trade & Exports: Near-record surplus: China doubles down on non-US export markets

China Snapshot · created by Tristan McInnis · reading v154
Updated: 2026-08-29T14:28:59.010129+00:00
Permanent reading: https://china-snapshot.com/analysis/dossiers/trade/v154.html
AI-assisted interpretation; verify against the cited original sources.

## Current understanding at this revision

China's external surplus remains near record and the two-track strategy — deepening trade with non-US markets while hedging the US truce — is being reinforced, not revised, by the latest data and policy signals. SAFE data for July 2026 show goods and services exports of $424.2bn, imports of $333.0bn and a surplus of $91.2bn, with the goods balance alone at $110.3bn and services still in deficit at $19.1bn [1](https://www.safe.gov.cn/safe/2026/0828/27815.html). Goods exports remain the entire engine of the external surplus.

The composition of that engine explains the policy push toward ASEAN and 'Global South' markets. MOFCOM reports China remains Kyrgyzstan's largest trading partner, with bilateral trade of $11.7bn in January–July 2026 driven by electric vehicles, lithium batteries, photovoltaics and mechanical-electrical goods [2](https://english.www.gov.cn/news/202608/28/content_WS6a9144e0c6d00ca5f9a0cd5f.html). The same 'new three' products that trigger overcapacity complaints in Western markets are being redirected to Central Asia and other non-US destinations. Subnational matchmaking is reinforcing this: Shandong and Vietnam's Bac Ninh province held an enterprise conference focused on electronics, semiconductors, logistics and agricultural processing [3](http://www.shandong.gov.cn/art/2026/8/27/art_97902_745540.html).

On the US track, the détente is real but shallow. SCMP reports Chinese executives may join Xi Jinping's US trip and that the one-year Busan truce extension is 'almost certain'; Wang Yi's meeting with US ambassador David Perdue was about implementing leaders' consensus [4](https://news.google.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?oc=5). Yet the US trade-remedy machine continues: on Aug 31 the Federal Register posted final affirmative AD and CVD determinations on van-type trailers and subassemblies from China [5](https://www.federalregister.gov/documents/2026/08/31/2026-17750/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative)[6](https://www.federalregister.gov/documents/2026/08/31/2026-17749/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative), following Aug 28 no-shipment findings on hardwood plywood, a court-related amendment to carbon steel butt-weld pipe fittings, and postponement of preliminary PTMEG determinations [7](https://www.federalregister.gov/documents/2026/08/28/2026-17620/certain-hardwood-plywood-products-from-the-peoples-republic-of-china-final-determinations-of-no)[8](https://www.federalregister.gov/documents/2026/08/28/2026-17621/certain-carbon-steel-butt-weld-pipe-fittings-from-the-peoples-republic-of-china-notice-of-court)[9](https://www.federalregister.gov/documents/2026/08/28/2026-17638/polytetramethylene-ether-glycol-from-the-peoples-republic-of-china-the-republic-of-korea-taiwan-and). Tariff policy remains erratic, so Beijing cannot treat the truce as durable.

The multilateral and provincial tracks are offsetting this. The Third APEC Senior Officials' Meeting in Dalian produced consensus on practical cooperation in anti-corruption, oceans and fisheries, food security, health and energy, and chair Chen Xu said preparations for the APEC Economic Leaders' Meeting in Shenzhen in November are entering a new and important stage [10](https://english.henan.gov.cn/2026/08-29/3408795.html). Gansu's Provincial Party Committee held a special study session on deep integration into BRI construction and building an 'open strong province' [11](https://www.gansu.gov.cn/gsszf/gsyw/202608/174385463.shtml). Hainan is operationalising its free trade port: Feng Fei pressed Haikou Customs to accelerate zero-tariff and processing-value-added domestic-sales exemption policies after the island-wide customs closure [12](https://www.hainan.gov.cn/hainan/ldhd/202608/6f6e1859469e41e6b0adb93c5cf60b82.shtml), and Hainan held a high-tech industry matchmaking event in Shanghai targeting biomedicine and digital economy, linking the port to Yangtze River Delta innovation resources [13](https://www.hainan.gov.cn/hainan/ldhd/202608/b9b3d7383f0541f09b203aab08b837c8.shtml).

The limit is that the surplus itself fuels the backlash. The more China's goods exports grow, the more anti-dumping and countervailing actions accumulate across multiple markets, not only the US. The new van-trailer determinations are a reminder that trade remedies targeting China remain a permanent feature; whether new markets can absorb redirected volumes is the key uncertainty.

Outlook: expect continued high export volumes and a large surplus, with the US truce extended but shallow, and a growing emphasis on APEC, BRI and free trade ports. The risks are a slow accretion of barriers and insufficient absorptive capacity in alternative markets, not a near-term collapse in exports.

## What changed in this reading

New documents confirm the standing assessment — July BOP data, US final AD/CVD determinations, and APEC progress all match the prior brief. Only minor additions: Hainan holds a Shanghai high-tech matchmaking event, and Macao Customs promotes three deputy commissioners; neither shifts the outlook.

## Open questions

- Will the Busan trade truce extension be formally ratified and for the full year?
- Can ASEAN and Central Asian markets absorb redirected 'new three' volumes without triggering their own trade remedies?
- Will US trade remedies continue to multiply independently of the tariff truce?

## Evidence

1. [State Administration of Foreign Exchange Releases Data on China's International Balance of Payments Goods and Services Trade for July 2026](https://www.safe.gov.cn/safe/2026/0828/27815.html) — SAFE; published date unknown.
2. [China remains Kyrgyzstan's largest trading partner: commerce ministry](https://english.www.gov.cn/news/202608/28/content_WS6a9144e0c6d00ca5f9a0cd5f.html) — State Council (EN); published date unknown.
3. [2026 Shandong-Vietnam Economic and Trade Cooperation and Enterprise Matchmaking Conference held](http://www.shandong.gov.cn/art/2026/8/27/art_97902_745540.html) — Shandong Provincial Government; published 2026-08-27.
4. [Exclusive | Chinese execs may join Xi’s US trip, as trade truce extension ‘almost certain’](https://news.google.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?oc=5) — South China Morning Post; published 2026-08-27.
5. [Van-Type Trailers and Subassemblies Thereof From the People's Republic of China: Final Affirmative Determination of Sales at Less Than Fair Value](https://www.federalregister.gov/documents/2026/08/31/2026-17750/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative) — US Federal Register; published 2026-08-31.
6. [Van-Type Trailers and Subassemblies Thereof From the People's Republic of China: Final Affirmative Countervailing Duty Determination](https://www.federalregister.gov/documents/2026/08/31/2026-17749/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative) — US Federal Register; published 2026-08-31.
7. [Certain Hardwood Plywood Products From the People's Republic of China: Final Determinations of No Shipments in the Antidumping and Countervailing Duty Administrative Reviews; 2024, 2020-2021](https://www.federalregister.gov/documents/2026/08/28/2026-17620/certain-hardwood-plywood-products-from-the-peoples-republic-of-china-final-determinations-of-no) — US Federal Register; published 2026-08-28.
8. [Certain Carbon Steel Butt-Weld Pipe Fittings From the People's Republic of China: Notice of Court Decision Not in Harmony With Final Covered Merchandise Determination and Notice of Amended Covered Merchandise Determination Pursuant to Court Decision](https://www.federalregister.gov/documents/2026/08/28/2026-17621/certain-carbon-steel-butt-weld-pipe-fittings-from-the-peoples-republic-of-china-notice-of-court) — US Federal Register; published 2026-08-28.
9. [Polytetramethylene Ether Glycol From the People's Republic of China, the Republic of Korea, Taiwan, and the Socialist Republic of Vietnam: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations](https://www.federalregister.gov/documents/2026/08/28/2026-17638/polytetramethylene-ether-glycol-from-the-peoples-republic-of-china-the-republic-of-korea-taiwan-and) — US Federal Register; published 2026-08-28.
10. [APEC meeting sees consensus on coop](https://english.henan.gov.cn/2026/08-29/3408795.html) — Henan Provincial Government; published 2026-08-29.
11. [Provincial Party Committee Theoretical Study Center Group holds special study (expanded) meeting](https://www.gansu.gov.cn/gsszf/gsyw/202608/174385463.shtml) — Gansu Provincial Government; published date unknown.
12. [Feng Fei conducts investigation at Haikou Customs.](https://www.hainan.gov.cn/hainan/ldhd/202608/6f6e1859469e41e6b0adb93c5cf60b82.shtml) — Hainan Provincial Government; published date unknown.
13. [Hainan Free Trade Port high-tech industry development matchmaking event held in Shanghai](https://www.hainan.gov.cn/hainan/ldhd/202608/b9b3d7383f0541f09b203aab08b837c8.shtml) — Hainan Provincial Government; published date unknown.

Revision dates describe China Snapshot readings, not policy effective dates. Citation overlap is not causation or a measure of importance.