- China posted a record $1.2 trillion trade surplus despite persistent U.S. tariffs.
- Exports to non-U.S. markets surged, largely offsetting America’s falling purchases.
- Domestic demand weak, forcing reliance on global trade for economic stability.
Despite the heavy tariff pressure imposed by the United States, China's trade surplus more than doubled to nearly $1.2 trillion at the end of 2025 - the largest annual surplus recorded in China's history. For the first time, China surpassed the $1 trillion mark for its annual trade balance, demonstrating the strong resilience and capability of Chinese exporters during an increased period of trade friction.
Export growth played a central role in driving this milestone. For the full year, China’s overall exports increased and were especially strong in December, with customs figures showing a 6.6 % year-on-year rise outpacing economists’ forecasts. Imports also expanded, rising by 5.7 % in December, yet the faster pace of outbound shipments left a significant surplus at year-end.
The surge has come in spite of sharply declining shipments to the United States after Washington reinstated broad tariffs under President Donald Trump’s administration. Exports to the U.S. dropped by roughly 20 %, but Chinese goods continued to find strong demand in markets across Europe, Southeast Asia, Africa, and South America, effectively offsetting the U.S. decline.
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Officials and analysts point to a combination of diversified trade relationships and competitive pricing as key to this performance. China’s auto and electronics sectors, including electric vehicles, posted strong global shipments, with the country maintaining its position as a top exporter in these categories.
Despite the positive headlines around exports, there are increasing concerns about the structure of China’s economy. Domestic demand remains weak, weighed down by a prolonged property slump and slower consumer growth, making foreign markets essential for overall economic stability. International partners have also criticized the size of China’s surplus and warned that an overreliance on exports could pose long-term risks for the global trade balance.
Economists forecast that while export growth may moderate in 2026, China’s trade surplus is likely to remain above the $1 trillion mark, continuing to act as a cornerstone of its economic growth against a complex geopolitical backdrop.