Market Update: China vows more open economy, national treatment for foreign firms – Full Analysis

Published Sun, Mar 22, 2026 · 11:46 AM

[BEIJING] Chinese Premier Li Qiang pledged to address worries trade partners have over China’s large surplus, underscoring Beijing’s concern that the issue could disrupt relations with more nations during a fragile truce with the US.

“We take our trading partners’ concerns seriously, and we are ready to work with all parties to promote the sound and balanced development of trade,” the premier said in a keynote speech at the China Development Forum in Beijing on Sunday (Mar 22).

“We will also further widen market access for the services sector and increase imports of medical and healthcare products, digital technologies and low-carbon services to provide more business opportunities for foreign companies.”

The annual two-day forum, which concludes on Monday, serves as a platform for Beijing to promote its economic trajectory and investment opportunities to foreign business leaders, Chinese officials, economists and academics.

Senior executives attending include those from Apple, Samsung, Volkswagen, chipmaker Broadcom, industrial conglomerate Siemens, chemical producer BASF and pharmaceuticals firm Novartis. No Japanese company executives were listed on the guest list on the forum’s website.

Li said China would import more high-quality goods and work with trading partners to promote balanced trade development and expand the global trade pie, describing China as committed to being a “cornerstone of certainty” and “harbour of stability” for the world economy.

He also said opening up and technological progress were needed to create new markets. 

Li’s comments came as the Iran war increases risks for China’s economy, which started the year with a surprising uptick in domestic consumption and investment. In recent weeks, the conflict in the Middle East has upended energy markets and disrupted trade.

Higher fuel and raw material costs could further squeeze profit margins for manufacturers already under pressure from cut-throat competition.

China has made progress in curbing so‑called involution‑style competition, Li said. 

The country racked up a record trade surplus of US$1.2 trillion in 2025; exports continued to surge in the first two months of the year, exacerbating concerns in many countries around the world about the future of their own industries. 

The US and China engaged in a major trade war in 2025 that has been put on pause with a one-year truce reached by US President Donald Trump and his Chinese counterpart, Xi Jinping, in October.

In December, French President Emmanuel Macron warned that the European Union may be forced to take “strong measures” against China, including potential tariffs, if Beijing fails to address its widening trade imbalance with the bloc.

Authorities in Beijing have taken some steps to address the rising trade tensions, including by reducing export tax rebates for hundreds of products such as solar cells and batteries.

China’s manufacturing strength comes with the economy troubled by weak domestic consumption. The nation’s industries, including solar, are also struggling with overcapacity and intense price competition.

The Iran war is also increasing risks for China’s economy. Higher fuel and raw material costs could further squeeze profit margins for manufacturers.

The country has already set its most modest annual growth target since 1991. Beijing appears to be taking steps to fortify the economy, with government spending off to its fastest start to any year since 2022. BLOOMBERG, REUTERS