China's trade surplus stems from global manufacturing role, not currency policy: Tsinghua economist

China's trade surplus is a natural result of the global division of labor and cannot be attributed simply to an undervalued renminbi exchange rate or government subsidies, said Ju Jiandong, chair professor at Tsinghua University PBC School of Finance.

"China's manufacturing sector does not just produce for China, but for the entire world," Ju said at the 2026 Tsinghua PBCSF Chief Economists Forum recently held in Beijing.

In theory, the global division of labor itself does not need to be corrected, Ju said. However, he noted that the United States and Europe are facing mounting pressure on their manufacturing sectors, with security concerns playing an important role in shaping their responses.

To help boost domestic consumption and investment, Ju proposed that China's central government borrow from overseas by issuing about 10 trillion yuan ($1.49 trillion) worth of renminbi-denominated government bonds.

Zhu Jingyi and Zheng Zihang contributed to this story.