As of 2025, the goods trade deficit between the European Union and China has doubled since 2020, while it is 3.6 times greater in Germany. One driver of this imbalance may be Chinese currency manipulation, which has allowed Chinese firms to undercut the prices of European retailers.

Fact of the Week: Chinese Currency Manipulation May Be Driving the Trade Surplus Between China and Europe

China’s trade surplus has grown from $993 billion in 2024 to $1.08 trillion in the first 11 months of 2025, making it the first country in recorded history to reach the $1 trillion milestone.

Fact of the Week: China’s Trade Surplus in Goods Surpassed $1 Trillion in the First 11 Months of 2025

Fact of the Week: China's Trade Surplus in Goods Surpassed $1 Trillion in the First 11 Months of 2025

The fall in the value-added of foreign inputs as a share of China’s gross exports reflects an increased reliance on domestic production of intermediate goods and services and a shift toward production for domestic consumption.

Fact of the Week: Foreign-Produced Content of Chinese Exports Fell From 21.9 Percent in 2008 to 17.2 Percent in 2018

A recent article suggests that while the tariffs may have decreased Chinese imports to the United States, Chinese imports also increased in other major U.S. trading partners.

Fact of the Week: China’s Share of US Goods Imports Has Fallen by 8 Percentage Points Since the 2018–2019 Tariff Hikes

Fact of the Week: China's Share of US Goods Imports Has Fallen by 8 Percentage Points Since the 2018–2019 Tariff Hikes

A study finds that over 99 percent of a sample of 5,260 listed Chinese firms received government subsidies totaling €35.3 billion in 2022, double the amount from 2015.

Fact of the Week: More Than 99 Percent of Listed Firms in China Receive Direct Subsidies From the Chinese Government

The ICE U.S. Dollar Index, which measures the value of the dollar against a basket of other global currencies, increased 19.6 percent over the last 12 months and is at its highest level since May 2002. 

Fact of the Week: The US Dollar Is Up Almost 20% Relative to Other Major Currencies Over the Last Year

Recent years have seen China increase its spending on basic and applied research, which is likely to drive its innovation going forward and could be a large factor behind an eventual Chinese leadership role in global innovation.

Fact of the Week: Chinese R&D Spending Rose More Than 10 Percent in 2019

In the decade since the global financial crisis, the Chinese government has moved aggressively to stimulate capital investment that will strengthen its competitive position, both domestically and in global markets.

Fact of the Week: Chinese Government-backed Investment Funds Aim to Control $1.7 Trillion

Until the last decade, major nations primarily provided financing to domestic exporters only as a lender of last resort. Since then, official medium- and long-term export crediting has more than doubled from $55 billion in 2008 to $129 billion in 2018.

Fact of the Week: The Chinese Yuan Is 25 Percent Undervalued

Related

Fact of the Week: Chinese Currency Manipulation May Be Driving the Trade Surplus Between China and Europe

Fact of the Week: China’s Trade Surplus in Goods Surpassed $1 Trillion in the First 11 Months of 2025

Fact of the Week: Foreign-Produced Content of Chinese Exports Fell From 21.9 Percent in 2008 to 17.2 Percent in 2018