China has reportedly manipulated its trade data to depict a smaller current account surplus compared to Europe, as stated in a report by the Council on Foreign Relations (CFR). The report points out that the data accepted by the IMF is deceptive, showing Europe with a larger surplus than China in 2024. However, China’s reported current account surplus has actually increased significantly since then, reaching around $750 billion.
The CFR report highlights that the IMF and OECD publications have used incomplete data, failing to consider the significant rise in China’s current account surplus. Notably, China’s net exports have substantially contributed to its growth, with a notable surplus in the auto sector. The report also mentions that the euro area’s surplus has decreased, excluding Ireland’s inflated surplus due to profit shifting by American companies like Apple and Microsoft.
Furthermore, the report emphasizes the need for international organizations to analyze China’s trade and investment imbalances more comprehensively. It suggests that adjustments should be made to accurately compare China’s surplus with that of Germany. The report calls for a more detailed assessment by major international bodies like the IMF and OECD to reflect the true economic dynamics accurately.
