China was the focus of an unprecedented number of trade disputes at the World Trade Organization (WTO) in the previous year, as its robust export growth inundated global markets and attracted complaints from its trade partners. Beijing faced 198 trade investigation cases at the WTO in 2024, according to research conducted by Lu Feng, an economics professor at Peking University. This figure is double the amount recorded the previous year and represents nearly half of all disputes filed at the international trade organization.
Chinese authorities have relied on the significant increase in exports to support growth in the world’s second-largest economy, which has been combating weak domestic demand due to a prolonged downturn in the property sector. Consequently, the country’s global trade surplus nearly reached a record $1 trillion in 2024.
Lu emphasized that a more balanced Chinese economy could be beneficial for both China and its international relations. Analysts have suggested that trade tensions elsewhere, particularly in developed nations, were likely to be exacerbated by the tariff pressures imposed by U.S. President Donald Trump on China. The tariffs have led to the redirection of Chinese goods to other markets.
Since taking office in January, Trump has imposed additional tariffs of 20 percent on all Chinese goods, with plans to announce reciprocal tariffs against U.S. trade partners on April 2. China has responded by targeting roughly $36 billion worth of U.S. goods, including agricultural products, cars, and energy.
François Chimits, an economist at the Mercator Institute for China Studies, noted that increased trade barriers from the U.S. and Japan have forced the European Union to absorb more of China’s excess production. The European Commission initiated 21 trade investigations into Chinese products in 2024, up from nine the previous year, targeting items such as steel cylinders, plywood, candles, and decorative paper.
Over half of the trade cases against China last year were initiated by developing countries, illustrating that Western countries’ concerns over Chinese overproduction are widespread. Data showed that emerging economies initiated 117 cases, including 37 from India, 19 from Brazil, and nine from Turkey.
Even some of China’s closer partners have been troubled, as evidenced by Russia imposing “recycling fees” on Chinese car imports, which have dominated the local market in response to Western sanctions on Moscow. Pakistan, a major recipient of Chinese financial aid, initiated five trade cases in 2024, investigating increased imports of items like printing paper and chemical products.
Pakistan’s Finance Minister, Muhammad Aurangzeb, indicated that the ties between the two nations extend far beyond trade, and he is confident the disputes will be resolved. He also highlighted that China is assisting Pakistan in developing special economic zones to boost exports, even though many Chinese-funded projects in Pakistan face delays and cost overruns.
Chimits stated that President Xi Jinping’s emphasis on expanding high-tech industrial capacity presents a long-term challenge for China’s trade partners. The sheer size of China necessitates consideration of the global impact of its economic imbalances.
In recent months, Chinese officials have pledged measures to stimulate consumer spending, though analysts indicate these plans lack specifics. Peng Sen, a former high-ranking official at China’s planning agency, pointed out that a major policy shift is required to transition the country towards consumption-driven growth, as historical policies have preferred production and investment over consumption, resulting in suppressed consumer spending.
