China’s Trade Surplus Hits Record $1.2 Trillion
The China trade surplus set a record in 2025 on the back of strong export growth at the end of the year. New customs data released on Wednesday show that while trade with the United States remained weak, China’s exports did well overall and imports surged.
This confirms previous analysis indicating changes in global trade patterns and persistent challenges at home. China’s exports in December grew much faster than expected, according to official customs data released on Wednesday.
In US dollars, exports rose 6.6% in December from the same month a year earlier, well above the median of 3%, as well as more than the 5.9% increase in November. This strong export performance pushed the China trade surplus to an all-time high. However, imports also did well in December.
Compared to the same month a year earlier, they rose 5.7% in December, which was well above expectations of only 0.9% and the fastest growth in three months and the highest rate since September of last year. The combination of growing exports and imports underscored the mixed but crucial picture of the Chinese economy.
For the whole of 2025, China’s exports increased by 5.5%, while imports grew slightly. As a result, the China trade surplus reached $1.19 trillion, an increase of about 20% compared to 2024. It is the highest annual trade surplus China has ever registered.
However, there is a significant undercurrent to that trend. Trade with the United States continued to deteriorate significantly. In just December, exports of China’s exports to the
Shift Toward Other Markets
With trade with the U.S. drying up, Chinese exporters began looking to other parts of the world. Exports to the European Union up 12% in December, Association of Southeast Asian Nations (ASEAN) shipments 11%. These gains helped underpinned export expansion and strengthened the China trade surplus.
On the import side of the ledger, China began buying more goods from Europe, with imports from EU countries up 18 percent in December. But imports from ASEAN countries slipped 5 percent, indicating an uneven trend of trade in different regions.
China’s customs authority spokesman Lv Daliang said trade ties with the U.S. need to be “win-win.” He urged dialogue and negotiations to solve trade problems and expand cooperation between the two nations.
Growing Global Concerns
China’s expanding trade surplus has alarmed its biggest trading partners. Some are concerned that China’s dependence on exports could cause imbalances in the global trading system. THE INTERNATIONAL Monetary Fund has called on Beijing to rely less on exports and stimulate domestic consumption.
Domestic Economic Challenges
Even with robust exports, the China economy still struggles at home. The world’s second-largest economy, valued at almost $19 trillion, is grappling with deflationary pressures, a protracted property slump and poor consumer sentiment.
Chinese leaders have also admitted to these problems. Government officials late last month promised to increase imports and pursue a more balanced trade pattern. Easing global concerns and boosting domestic growth are seen as goals that would come from reducing the China trade surplus over time.
Policy Outlook and Trade Truce
China is likely to keep macroeconomic policy largely unchanged in the near future, Zhiwei Zhang, president and chief economist at Pinpoint Asset Management said. He also thinks strong export growth is cushioning weak domestic demand and that easing trade tensions with the U.S. could bring some stability.
In October last year, China and the U.S. agreed to scale back export controls and higher tariffs as part of a one-year trade truce between President Xi Jinping and former President Donald Trump.
China purchased 111.8 million tons of soybeans last year, a 6.5 percent increase from the previous year, according to official data. But the increase in imports for December, at 1.3 percent, was modest, indicating that purchases had been uneven.
Rare Earths and Looking Ahead
China’s exports of rare earths — a vital material for technology and clean energy — surged 32 percent in December to 4,392 tons. For the year, rare earth exports increased by 12.9 percent, again contributing to the China trade surplus.
