China posts record trade surplus in 2025 as exports offset US slowdown

China recorded an unprecedented trade surplus in 2025, driven by resilient export growth that more than compensated for weaker shipments to the United States, official data released showed.

According to China’s customs authorities, the country’s trade surplus for the year climbed to nearly $1.2 trillion, marking the highest level on record. Exports rose 5.5% year-on-year to $3.77 trillion, while imports remained largely unchanged at $2.58 trillion, resulting in a surplus of around $992 billion.

Momentum strengthened toward the end of the year. In December, exports increased 6.6% from a year earlier, exceeding economists’ expectations and improving on November’s growth of 5.9%. Imports also rebounded sharply, rising 5.7% year-on-year in December, compared with just 1.9% in November.

Since US President Donald Trump escalated trade tensions with Beijing, China’s exports to the US have fallen significantly. However, stronger demand from markets such as South America, Southeast Asia, Africa, and Europe has more than offset the decline.

Analysts noted that robust global demand for semiconductors, electronics, and related manufacturing materials played a crucial role in supporting export growth. Strong overseas shipments have helped China maintain economic growth close to its official target of around 5%.

At the same time, China’s export strength has raised concerns among trading partners, who fear that a surge of low-cost Chinese goods could harm domestic industries. Beijing has sought to rebalance its economy toward domestic consumption, though policy measures have so far delivered limited results. Key initiatives include subsidies encouraging consumers to replace older appliances and vehicles with newer, energy-efficient models.

In Europe, tensions have shown signs of easing. The European Commission recently issued new guidelines allowing Chinese electric vehicle makers to propose minimum pricing commitments as an alternative to steep tariffs imposed in October 2024 to counter alleged subsidies. The move signals a potential thaw in the EU–China electric vehicle dispute, with negotiations ongoing to ensure fairer competition.

China remains the European Union’s second-largest trading partner in goods, after the United States, underscoring the global significance of its trade performance despite rising frictions.