China Posts Record $1T Trade Surplus Despite Trump Tariffs

By Staff, Agencies

China posted robust export growth in 2025, recording a record trillion-dollar trade surplus as its manufacturers prepare for three more years of a Trump administration seeking to curb China’s industrial dominance by diverting US orders elsewhere.

Beijing’s resilience to renewed tariff tensions since US President Donald Trump returned to the US presidency last January has emboldened Chinese firms to shift their focus to south-east Asia, Africa and Latin America to offset US duties.

Reliance on exports to offset weak domestic demand is fueling global concerns over China’s trade practices and overcapacity.

The full-year trade surplus hit $1.189tn, roughly matching the GDP of a top-20 economy such as Saudi Arabia, according to customs data released Wednesday.

“The momentum for global trade growth looks to be insufficient,” Wang Jun, a vice-minister at China’s customs administration, said at a press briefing on Wednesday, calling the environment “severe and complex.”

However, diversified trading partners, Wang said, have “significantly enhanced” China’s resilience and that the fundamentals of foreign trade “remain solid.”

Exports from the world’s second-largest economy rose 6.6% year on year in December, beating a 3.0% Reuters poll forecast and accelerating from 5.9% in November.

Imports were up 5.7% after a 1.9% bump the month earlier and also beat a forecast for a 0.9% uptick.

China’s yuan was little changed after the data, while stocks rallied, with the Shanghai Composite and CSI300 both up more than 1% in morning trade.

China posted monthly export surpluses above $100bn seven times last year, up from once in 2024, showing that Trump’s tariffs have barely slowed its global trade despite curbing shipments to the US.

Economists expect China to keep gaining global market share, aided by overseas production hubs and strong demand for lower-grade chips and electronics.

China’s auto exports rose 19.4% to 5.79m vehicles in 2025, with pure EVs up 48.8%, likely keeping the country the world’s top car exporter for a third year.

Beijing, however, is showing signs of moderating industrial exports, acknowledging economic imbalances and the image issues its export volumes create.

Following November’s trillion-dollar surplus, the Chinese Premier Li Qiang urged “proactively expanding imports” and promoting balanced trade.

China also scrapped subsidy-like export tax rebates for its solar industry, a longstanding point of friction with EU states.

In December, lawmakers fast-tracked revisions to the foreign trade law, signaling to trans-Pacific partners a shift from subsidies toward freer trade.

Despite the October tariff truce, US duties of 47.5% remain well above the ~35% level analysts say allows Chinese firms to profitably export.