China’s 2025 Trade Surplus Hits Record Near $1.2 Trillion as Exports Shift Away From U.S.

China’s trade surplus surged to a record of nearly $1.2 trillion in 2025, customs data released Wednesday showed, as stronger shipments to other regions offset a sharp decline in exports to the United States amid higher U.S. tariffs. Exports rose 5.5% for the year to $3.77 trillion, while imports were essentially flat at $2.58 trillion. The surplus exceeded 2024’s total of more than $992 billion.

December trade beat expectations as momentum carried into year-end

In December, exports rose 6.6% from a year earlier in dollar terms, outpacing forecasts and improving on November’s 5.9% gain. Imports increased 5.7% year-on-year in December, accelerating from November’s 1.9% rise. China’s trade surplus crossed $1 trillion for the first time in November, reaching $1.08 trillion for the first 11 months of the year.

U.S. drop offset by gains in Africa, Southeast Asia, Europe and Latin America

Exports to the U.S. fell 20% for all of 2025, but the decline was largely compensated by growth elsewhere. Shipments to Africa rose 26%, exports to Southeast Asia climbed 13%, and exports to the European Union increased 8%, while exports to Latin America grew 7%.

Trade War: China Retaliates Against U.S. Tariffs — China’s 2025 Trade Surplus Hits Record Near $1.2 Trillion (Image source: ABC.com)

Chips and vehicles among key drivers, but surplus adds to global friction

Analysts attributed part of the export strength to global demand for computer chips and related products and materials, alongside growth in car exports. The export-driven boost has helped China keep economic growth near its official target of about 5%, but it has also heightened concerns in other countries that fear a wave of low-priced imports could harm domestic industries.

Officials warn of a tougher 2026 environment as IMF urges rebalancing

China’s customs administration described the external trade environment in 2026 as “severe and complex,” while saying the fundamentals of China’s foreign trade remain solid. Economists expect exports to remain a major growth engine in 2026 even as geopolitical tensions persist, but some forecasts see slower export growth than last year. The head of the International Monetary Fund has urged China to address economic imbalances and reduce reliance on exports by strengthening domestic demand—an effort complicated by a prolonged property downturn and still-weak consumer confidence.