China reported a historic trade achievement in 2025 on Wednesday, posting a record US$1.189 trillion trade surplus as exporters adapted to renewed US tariff pressures under the second Trump administration. The figure, comparable to the GDP of a top-20 global economy like Saudi Arabia, marks the first time the country’s annual surplus has exceeded the trillion-dollar mark, surpassing this threshold in November.
The data, released by China’s customs administration, underscores Beijing’s strategy of pivoting trade toward Southeast Asia, Africa, and Latin America, offsetting reduced orders from the United States. Chinese firms have leveraged this diversification to mitigate risks from ongoing US tariffs, which President Donald Trump reinstated after returning to the White House last January.
“The momentum for global trade growth looks to be insufficient, and the external environment for China’s foreign trade development remains severe and complex,” said Wang Jun, vice minister at China’s customs administration, at a press briefing. However, Wang added that with more diversified trading partners, “China’s ability to withstand risks has been significantly enhanced,” and “the fundamentals for China’s foreign trade remain solid.”
Outbound shipments from the world’s second-largest economy rose 6.6 percent year-on-year in December, accelerating from a 5.9 percent gain in November and exceeding the 3.0 percent growth forecasted by economists polled by Reuters. Imports also beat expectations, rising 5.7 percent after a 1.9 percent increase the prior month.
Following the data release, the yuan held steady while equity markets responded positively. The Shanghai Composite and blue-chip CSI300 indices each climbed more than 1 percent in morning trading.
China’s monthly export surpluses exceeded US$100 billion seven times in 2025, up from just once in 2024, reflecting both a weakened yuan and the resilience of Chinese exports amid US trade restrictions. Economists anticipate China will continue expanding global market share in 2026, driven by overseas production hubs that offer lower-tariff access to the US and EU, as well as rising demand for lower-grade chips and electronics.
China’s automotive sector, a flagship of the nation’s industrial ambitions, saw exports rise 19.4 percent to 5.79 million vehicles last year, with pure electric vehicle shipments surging 48.8 percent. The country is poised to remain the world’s largest auto exporter for a third consecutive year, having surpassed Japan in 2023.
Beijing has also signaled a growing awareness of the risks posed by outsized exports. After the November trillion-dollar surplus, Premier Li Qiang called for “proactively expanding imports and promoting the balanced development of imports and exports.” The government recently removed long-standing export tax rebates for the solar industry, easing a point of contention with the European Union, and revised the Foreign Trade Law after just two readings—a move aimed at signaling commitment to freer, more open trade.
Despite a year-long truce on tariffs struck between Trump and President Xi Jinping in late October, US duties remain at 47.5 percent on Chinese goods, well above the roughly 35 percent threshold economists estimate allows profitable US-bound exports.
China’s trade resilience amid prolonged property weakness and sluggish domestic consumption highlights its reliance on external demand to sustain growth. However, the record surplus may further concern trading partners about overcapacity and their dependence on Chinese products, illustrating the delicate balance Beijing faces in maintaining global economic influence while managing domestic economic stability.
