China's Trade Surplus Reaches Record High Despite US Tariffs
In a surprising twist, China has reported a record $1.2 trillion trade surplus for 2025, shattering expectations and defying the impact of US tariffs imposed by President Donald Trump. The country's foreign trade in goods rose 3.8% to 45.47 trillion yuan ($6.51 trillion), with exports increasing 6.1% to 26.99 trillion yuan ($3.8 trillion) and imports growing 0.5% to 18.48 trillion yuan ($2.6 trillion).
China's export growth rates have been particularly impressive, with increases in emerging markets like Latin America, the Middle East, and Africa outpacing overall growth. According to Vice Minister Wang Jun of China's customs administration, trade partners are becoming more diversified, allowing the country to better resist risks.
Despite US tariffs that have hit exports hard, China has continued to post strong numbers. In fact, the country had a monthly trade surplus of over $100 billion seven times last year, thanks in part to a weak yuan. This has helped boost exports and offset the impact of declining sales to the US, where imports fell by 28% in 2025.
However, China's reliance on exports for growth remains a concern. The country is heavily dependent on export-led growth due to sluggish domestic demand and a crisis in its property sector. Experts warn that rebalancing the economy will be challenging, with structural constraints making a shift away from export-led growth "improbable in the short to medium term."
The US has imposed steep tariffs on Chinese goods since Trump returned to office last January, citing unfair trade practices as the cause of the US trade deficit with China. The two countries have been locked in a trade war, with both sides imposing retaliatory tariffs that have brought tariffs as high as 145%.
Despite the ongoing tensions, Chinese exporters have found ways to navigate the tariffs by tapping into other markets and restructuring supply chains. They have shifted lower-end manufacturing to third countries in Southeast Asia and elsewhere that face lower US tariffs.
The impact of these efforts is clear: China's exports are now a global necessity, with markets around the world struggling to cope with the surge of low-cost Chinese goods. The US and EU have already resorted to trade defenses, raising concerns that other countries may follow suit.
As tensions continue to simmer between the US and China, one thing is clear: the trade war shows no signs of abating anytime soon. With Trump threatening to impose further tariffs on countries that do business with Iran, and Chinese officials vowing to protect their interests, the world waits with bated breath for the next move in this ongoing trade showdown.
In a surprising twist, China has reported a record $1.2 trillion trade surplus for 2025, shattering expectations and defying the impact of US tariffs imposed by President Donald Trump. The country's foreign trade in goods rose 3.8% to 45.47 trillion yuan ($6.51 trillion), with exports increasing 6.1% to 26.99 trillion yuan ($3.8 trillion) and imports growing 0.5% to 18.48 trillion yuan ($2.6 trillion).
China's export growth rates have been particularly impressive, with increases in emerging markets like Latin America, the Middle East, and Africa outpacing overall growth. According to Vice Minister Wang Jun of China's customs administration, trade partners are becoming more diversified, allowing the country to better resist risks.
Despite US tariffs that have hit exports hard, China has continued to post strong numbers. In fact, the country had a monthly trade surplus of over $100 billion seven times last year, thanks in part to a weak yuan. This has helped boost exports and offset the impact of declining sales to the US, where imports fell by 28% in 2025.
However, China's reliance on exports for growth remains a concern. The country is heavily dependent on export-led growth due to sluggish domestic demand and a crisis in its property sector. Experts warn that rebalancing the economy will be challenging, with structural constraints making a shift away from export-led growth "improbable in the short to medium term."
The US has imposed steep tariffs on Chinese goods since Trump returned to office last January, citing unfair trade practices as the cause of the US trade deficit with China. The two countries have been locked in a trade war, with both sides imposing retaliatory tariffs that have brought tariffs as high as 145%.
Despite the ongoing tensions, Chinese exporters have found ways to navigate the tariffs by tapping into other markets and restructuring supply chains. They have shifted lower-end manufacturing to third countries in Southeast Asia and elsewhere that face lower US tariffs.
The impact of these efforts is clear: China's exports are now a global necessity, with markets around the world struggling to cope with the surge of low-cost Chinese goods. The US and EU have already resorted to trade defenses, raising concerns that other countries may follow suit.
As tensions continue to simmer between the US and China, one thing is clear: the trade war shows no signs of abating anytime soon. With Trump threatening to impose further tariffs on countries that do business with Iran, and Chinese officials vowing to protect their interests, the world waits with bated breath for the next move in this ongoing trade showdown.