China must lift its yuan to push up consumption

China's eye-popper of a trade surplus is a sign of its export resilience but its economy suffers from weak internal demand. It should slowly let its currency strengthen to enlarge imports

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Rarely does China's stated national priority align so well with what the world wants of the People's Republic. Yet, Beijing is not really letting it happen—to the world's dismay and its own people's loss.

This needs to change, starting with China letting its yuan appreciate a whole lot more than the 3% it has risen against the dollar since the start of 2025. As reported this week, China's trade surplus topped $1.1 trillion over the first 11 months of this calendar year—a record figure. No doubt, this is a sign of China's export resilience. Despite a near 20% decline in exports so far this year to the world's largest market, thanks to US President Donald Trump's 47% tariff on imports from China, its shipments continue to make waves as its merchandise storms other markets. Clearly, Trump's shakeup of global trade has not deprived the country of its status as the world’s factory. Other countries, however, have grown anxious as they watch their domestic industries lose market share both at home and abroad to cheap Chinese goods.