China recorded an unprecedented $1.2 trillion trade surplus in 2025, marking a significant shift in how this wealth is impacting global financial markets. Unlike previous periods where such surpluses largely accumulated in state-controlled foreign exchange reserves, a substantial portion — approximately two-thirds — of these foreign assets is now flowing into global markets through Chinese companies, individuals, and state-linked lenders operating outside traditional official channels. Data from China's currency market regulator indicates that the non-official sector's holdings of assets abroad soared by over $1 trillion in the first three quarters of 2025 alone, more than doubling the average annual growth seen in the past decade. This capital has been actively deployed, resulting in an estimated $535 billion surge in Chinese private purchases of overseas securities, including US stocks, European bonds, and mutual funds, through September 2025. This figure significantly outpaced direct investments made for establishing overseas factories or expanding staff, highlighting a more pervasive integration of Chinese capital into global financial infrastructure. Economists warn that this quiet migration of capital introduces new systemic risks, including the potential for sudden capital reversals, particularly if the yuan experiences rapid appreciation or if domestic conditions in China lead to fund repatriation. This trend is ushering in an era where the global financial system is becoming increasingly reliant on liquidity sourced from China, often with reduced transparency and beyond the immediate control of Beijing. Despite efforts by China to attract foreign investment by adding new incentives in certain sectors, this outward flow signifies a deeper, evolving relationship between China's domestic economic dynamics and the stability of international markets.