Discussion Paper

China’s Trade Dominance and the Role of Industrial Policies


Abstract: China's trade surplus surged to a record $1.2 trillion in 2025, exceeding 6% of its GDP, marking a new milestone in its integration into, and dominance of, the global trading system. This development has attracted heightened attention from policymakers and analysts, not only because of the sheer size of the surplus, but also because of growing concerns about the distribution of global manufacturing, the persistence of global external imbalances, and the role of industrial policy interventions in shaping trade outcomes.

https://doi.org/10.17016/2380-7172.4018

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2026-03-23

Number: 2026-03-23