When I said "no other way around it" I meant trade surplus must be balanced by outward investment, an arithmetic fact. I didn't mean they can't run a trade defi

When I said "no other way around it" I meant trade surplus must be balanced by outward investment, an arithmetic fact. I didn't mean they can't run a trade deficit. As for why they don't have a trade deficit: to run a trade deficit domestic investment rate needs to exceed savings rate. They have a high savings rate. They are already accused of doing too much domestic investment to prop up the economy so an even higher investment rate is not a solution. They can try to lower the savings rate by increasing welfare spending. As for why it may not want a trade deficit: China can't borrow in its own currency from foreigners like US, that is Chinese RMB is not a major reserve currency. To fund trade deficits with USD denominated market borrowing would expose its economy to mood swings of foreign investors.