Question

the implications of such huge trade surplus for China?​

Answer 1

With so much foreign currency flowing into China (mostly USD), the government keeps significant dollar reserves to maintain an undervalued Renminbi (RMB). This duel effect makes exports cheaper and imports more expensive—reducing the demand for foreign goods, and leading to China's trade surplus.

Answer 2

Answer:

Trade Balance = Total Value of Exports - Total Value of Imports

A trade surplus occurs when the result of the above calculation is positive. A trade surplus represents a net inflow of domestic currency from foreign markets. It is the opposite of a trade deficit, which represents a net outflow, and occurs when the result of the above calculation is negative. In the United States, trade balances are reported monthly by the Bureau of Economic Analysis.