CHINA’S TRADE SURPLUS HITS RECORD $1.2 TRILLION IN 2025 DESPITE US TARIFF PRESSURE
China recorded a historic trade surplus of $1.2 trillion in 2025, official data showed on Wednesday, underscoring the resilience of the world’s second-largest economy despite a sharp decline in exports to the United States triggered by renewed tariff hikes.
According to China’s customs authorities, the surplus rose year-on-year to its highest level on record, even as exports to the US fell by 20 per cent, following a bruising trade war that saw reciprocal tariffs between Washington and Beijing surge into triple digits. Imports from the US also declined by 14.6 per cent during the period.
Despite the setback, China’s overall exports grew by 5.5 per cent in 2025, as stronger demand from other global partners more than offset losses from the US market. Imports remained broadly flat in dollar terms.
Trade with Southeast Asia was a major driver of growth, with exports to the ASEAN bloc rising by 13.4 per cent year-on-year. Shipments to Africa surged by 25.8 per cent, while exports to the European Union climbed 8.4 per cent, highlighting China’s expanding trade footprint beyond the US.
However, imports from the EU declined slightly, reflecting lingering trade tensions between Brussels and Beijing. Signs of easing emerged earlier this week after the European Union said Chinese electric vehicle manufacturers could offer price undertakings, setting minimum export prices in place of tariffs—a move welcomed by Beijing.
Vice Minister of Customs Wang Jun, speaking at a press briefing in Beijing, said China’s total trade volume exceeded 45 trillion yuan ($6.4 trillion) for the first time, marking a new historical milestone.
“It should be noted that some countries politicise economic and trade issues, restricting high-tech product exports to China under various pretexts,” Wang said, in an apparent reference to US export controls. “Otherwise, we would have imported even more.”
Trade momentum strengthened toward the end of the year, with December exports rising 6.6 per cent and imports jumping 5.7 per cent year-on-year.
Analysts say the figures point to sustained resilience heading into 2026. Zichun Huang, China economist at Capital Economics, said the export outlook remains solid but warned that renewed trade tensions with the US could pose risks.
“One concern is whether the trade truce with the US will hold,” Huang said, noting President Donald Trump’s threat to impose a 25 per cent tariff on countries trading with Iran.
Meanwhile, Zhiwei Zhang of Pinpoint Asset Management said China’s export strength is helping cushion weak domestic demand, adding that stable US-China relations and a booming stock market could keep Beijing’s macroeconomic policy unchanged in early 2026.
Looking ahead, Wang Jun said China’s market would continue to open further, stressing that the country “remains an opportunity for the world” in the coming year.