# Trade & Exports: China's trade surplus stays near record; is deepening non-US, hedging US truce.

China Snapshot · created by Tristan McInnis · reading v155
Updated: 2026-08-30T03:02:28.058072+00:00
Permanent reading: https://china-snapshot.com/analysis/dossiers/trade/v155.html
AI-assisted interpretation; verify against the cited original sources.

## Current understanding at this revision

China's external surplus remains near record levels and its two-track trade strategy—deepening non-US market ties while hedging the US truce—is being reinforced, not revised, by the latest data and policy moves. 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, Central Asia and the 'Global South.' 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 east and south. Jiangsu has been particularly active: at the Central Asia Import-Export Expo in Almaty (August 2026), Jiangsu firms signed $150mn in intended deals in three days, up 25% year-on-year, with 7,000+ visitors (up 40%); at the Africa (Kenya) Power, Energy and Water Expo, 20 Jiangsu green equipment companies attracted $30mn in intended cooperation [3](https://www.jiangsu.gov.cn/art/2026/8/30/art_84322_11822473.html). Subnational matchmaking is reinforcing this: Shandong and Vietnam's Bac Ninh province held an enterprise conference focused on electronics, semiconductors, logistics and agricultural processing [4](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 business leaders may join Xi Jinping's US trip and the one-year Busan truce extension is 'almost certain'; Wang Yi's meeting with US ambassador David Perdue was about implementing leaders' consensus [5](https://news.google.com/rss/articles/CBMizwFBVV95cUxOZ0VzNktxRWZCRWZJS2JTU3Y5RDIwVU1UVUQyWVBIY3FXWm9HVmN4RmNGTTVmbG01S18tb0RiRHdoVXM0RVNtaG90U0VGenZXeFJvbVIxaVN0YzF5TTI5dFR0U1JHREVNTE5JdG94SHpiVlE3UlhQWWpVTFRXVU02WWc0Y09FZTl4RjlGc3d4NW94ZThFTmR5TFNkQ3dKTnNLN0kwU3gzNU5sSGllWWZZOXBJMnZMTHdZUjdXcUVha243U2IyeFNLcjJ0bU1zd0XSAc8BQVVfeXFMT2MzR2t5SkExX0NVRDIweWp0RWtyb2ZUdUh5MHZoa0tPTVNoMXZnZjJEZ3oxeXBTdjJfYjlSSGJsYllBSk56bFFSOHBsVDFzUWdjeGo1UDZHQzZfVUJ1MEdnSkRENHBrYk9IdTJHUGRTc25VWFp3cUdOWWdsSkM0dV9tYTRfMVZBakdKdWk1S3RxbzRPVFgzamkzUGlFYTBMVlJDMm5Pbm42SzNLQy1GeldmSkc3Y0NBRFpFbjlZcXVCMC03V3Bqb0c2MFFWRVpn?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 [6](https://www.federalregister.gov/documents/2026/08/31/2026-17750/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative)[7](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 [8](https://www.federalregister.gov/documents/2026/08/28/2026-17620/certain-hardwood-plywood-products-from-the-peoples-republic-of-china-final-determinations-of-no)[9](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)[10](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 [11](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' [12](https://www.gansu.gov.cn/gsszf/gsyw/202608/174385463.shtml). Hainan is operationalising its free trade port: a press conference in Changchun on August 29 disclosed that since island-wide customs closure, zero-tariff items have expanded from 21% to 74% of tariff lines, covering 6,600+ product types; the processing value-added domestic-sales exemption has been optimized; and the forbidden/restricted list has been implemented [13](https://www.hainan.gov.cn/hainan/ldhd/202608/d6d8ffbbd8384439a228a19ed2bff205.shtml). Hainan also held a high-tech industry matchmaking event in Shanghai targeting biomedicine and digital economy, linking the port to Yangtze River Delta innovation resources [14](https://www.hainan.gov.cn/hainan/ldhd/202608/b9b3d7383f0541f09b203aab08b837c8.shtml), and a 'Grand Lecture' on building a more open talent mechanism [15](https://www.hainan.gov.cn/hainan/ldhd/202608/9a0706c56396457090d5187b8e585152.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 final determinations are a reminder that trade remedies targeting China remain a permanent feature; whether new markets can absorb redirected volumes is the key uncertainty. On the domestic side, Jiangsu's expansion of local trade-in subsidies to include embodied-intelligence robots, digital cameras and drones is primarily a consumption stimulus, but it could support import demand for high-end components [16](https://www.jiangsu.gov.cn/art/2026/8/30/art_84322_11822476.html) — a secondary effect, not an export-game changer.

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. The concrete numbers from Almaty and Nairobi suggest the diversification track is delivering, but the absolute volumes still fall short of replacing the US market.

## What changed in this reading

New documents add concrete detail on Hainan Free Trade Port's zero-tariff expansion (21% to 74% of tariff lines, 6,600+ items) and Jiangsu's strong trade-mission results in Central Asia and Africa ($150mn intended deals in Almaty, $30mn in Kenya), reinforcing the diversification thesis [13](https://www.hainan.gov.cn/hainan/ldhd/202608/d6d8ffbbd8384439a228a19ed2bff205.shtml)[3](https://www.jiangsu.gov.cn/art/2026/8/30/art_84322_11822473.html). The US final AD/CVD determinations on van-type trailers are now posted [6](https://www.federalregister.gov/documents/2026/08/31/2026-17750/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative)[7](https://www.federalregister.gov/documents/2026/08/31/2026-17749/van-type-trailers-and-subassemblies-thereof-from-the-peoples-republic-of-china-final-affirmative), confirming the prior signal. No shift in the standing assessment; material change is false.

## Open questions

- Will the one-year Busan trade truce extension be formally announced during Xi Jinping's US trip, and will it survive continued US trade-remedy actions?
- Can ASEAN, Central Asia, and African markets absorb the redirected volumes of 'new three' exports at a pace that offsets US tariff losses?
- What final duty rates will be imposed on van-type trailers and subassemblies from China following the final affirmative AD/CVD determinations?
- Will Hainan's expanded zero-tariff list and processing value-added exemption meaningfully boost imports and re-exports through the free trade port?

## 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. [Signing $150 million in 3 days, intended cooperation amount exceeds $30 million; Jiangsu enterprises 'silk...'](https://www.jiangsu.gov.cn/art/2026/8/30/art_84322_11822473.html) — Jiangsu Provincial Government; published 2026-08-30.
4. [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.
5. [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.
6. [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.
7. [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.
8. [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.
9. [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.
10. [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.
11. [APEC meeting sees consensus on coop](https://english.henan.gov.cn/2026/08-29/3408795.html) — Henan Provincial Government; published 2026-08-29.
12. [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.
13. [Hainan held a special press conference on the Free Trade Port in Changchun.](https://www.hainan.gov.cn/hainan/ldhd/202608/d6d8ffbbd8384439a228a19ed2bff205.shtml) — Hainan Provincial Government; published date unknown.
14. [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.
15. [The 3rd Hainan Free Trade Port Grand Lecture of 2026 was held.](https://www.hainan.gov.cn/hainan/ldhd/202608/9a0706c56396457090d5187b8e585152.shtml) — Hainan Provincial Government; published date unknown.
16. [Our province optimizes and adjusts local autonomous trade-in categories, with smart robots and digital cameras included for the first time...](https://www.jiangsu.gov.cn/art/2026/8/30/art_84322_11822476.html) — Jiangsu Provincial Government; published 2026-08-30.

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