China’s export shock is pushing the global economy to a breaking point, and the U.S. may have to clean up the mess, former trade official says

Former U.S. Trade Representative Michael Froman warns that China's cheap and overwhelming exports are pushing the global economy to a breaking point, with the U.S. potentially having to clean up the resulting mess. The Chinese growth model is running out of road, with global GDP growth at 3.1% and China's trade surplus expanding more than 20% in early 2026.

China's trade surplus in 2025 was the largest in recorded history, growing three times faster than global goods trade. The flood of Chinese exports has sparked pushback, with the U.S. and European Union imposing trade barriers. China's state subsidies and mandates have encouraged excess production and cutthroat price wars, resulting in nearly a third of industrial firms operating at a loss.

As China nears the point where it runs out of customers, global fallout and potential economic crisis loom.