China vows to import more - vice premier says Beijing never sought trade surplus

China will not deliberately pursue a trade surplus and plans to expand imports to "act as the world's market," Vice Premier He Lifeng told the World Economic Forum in Davos, signaling a public shift in Beijing's economic messaging that could reshape global trade dynamics.

He's comments framed China as a buyer of last resort for global producers at a time when sluggish demand in many advanced economies has weighed on exports. The pledge addresses longstanding complaints from trading partners that Beijing's growth model prioritized export competitiveness and currency advantages. By casting China as an active importer, He sought to recast that narrative around demand-led growth at home.

The remarks carry weight because China is a global economic anchor: it is the world's second-largest economy and home to roughly 1.4 billion consumers. Even modest increases in China's import intensity can have outsized effects on commodity prices, factory orders and corporate earnings across exporters from Germany to Brazil. Market participants in Davos immediately interpreted the signal as Beijing preparing to lean on domestic demand and targeted buying to support global supply chains.

Economists note the commitment fits a longer-running policy pivot toward domestic consumption and services in Beijing's playbook. Over the past decade, Chinese leaders have repeatedly set targets to rebalance growth away from investment and exports and toward household spending. Structural factors - rapid urbanization, an ageing population and higher household wealth - give China the capacity to absorb more foreign goods and services, but translating political pledges into sustained import growth will require concrete measures.

Policy options Beijing could deploy include lowering tariffs, expanding government procurement of foreign technology and commodities, easing non-tariff barriers, and increasing services liberalization to unlock imports of tourism, education and professional services. Currency policy could also play a role; a more flexible yuan that avoids sharp appreciation would make increased import volumes more manageable without imposing a sudden shock on domestic producers.

For markets, the immediate implications are twofold. First, exporters tied to resource-intensive sectors could see demand strengthen if China increases purchases of energy, metals and agricultural commodities. Second, manufacturers of consumer goods and capital equipment in the European Union, Southeast Asia and Latin America stand to gain from any sustained rise in Chinese imports. Financial markets will monitor Chinese customs and trade data for concrete verification of the pledge; short-term asset moves are likely to hinge on the scale and sectoral composition of any import increase.

However, several constraints temper the optimism. China’s domestic industry remains highly competitive in many sectors, and protectionist sentiment has risen globally, which could limit the political appetite for large-scale openings. Additionally, weak external demand in key markets and slower global growth could blunt the impact of Beijing's import push.

Ultimately, He’s Davos remarks signal Beijing’s intent to use its market power more deliberately as a global stabilizer. The critical test will be whether the administration follows through with measurable policy changes and whether those changes translate into higher import volumes that materially alter global trade flows and reduce friction with trade partners over imbalances.