China Trade Surplus Hits $1.2 Trillion as Exports Shift
14th Jan. 2026
China’s trade surplus surged to a record of almost $1.2 trillion in 2025, according to official data released on Wednesday. With strong exports to emerging and alternative markets continuing to drive it’s growth. Even the shipments to the United States have declined sharply amid President Donald Trump’s renewed push for higher tariffs, China was successful in largely offsetting those losses. The figures underline how exports continue to prop up the world’s second-largest economy, even as domestic demand remains weak.
Data showed that China’s exports rose by 5.5% in 2025, to $3.77 trillion. The published data is driven by strong overseas demand for vehicles, computer chips, and industrial goods. Meanwhile, imports stagnated at $2.58 trillion which resulted in a surplus, far exceeding 2024’s $992 billion mark. In December alone, exports climbed to 6.6% compared to the last year, that beat the expectations of the economists. In the mean time imports rose by 5.7%, these figures are signaling resilient external demand at the end of the year.
How China’s Exports Offset the Impact of U.S. Tariffs
While exports to the United States fell sharply after Trump intensified his trade war with China. In response, China has increasingly redirected goods to the other markets. For the whole of 2025, China’s exports to US has fell by 20%, but this decline was largely compensated by gains across Africa, Southeast Asia, Europe, and Latin America.
Exports to Africa has surged by 26%, while shipments to Southeast Asia rose by 13%, the European Union by 8%, and Latin America by 7%. Analysts have emphasized the demand for semiconductors, electronic components, and materials used in chip making that supported countries’ export growth, while car exports also expanded as Chinese automakers increased their global footprint.
Economists expected that exports would continue to remain a key pillar of China’s growth, even as trade friction persists. “We continue to expect exports to act as a big growth driver in 2026,” said Jacqueline Rong, chief China economist at BNP Paribas.
Domestic Demand in China Continues to Lag
However, China’s export-led momentum has triggered concern among trading partners. They recall a fear wave of low-cost imports that could hurt local industries. Meanwhile, at home, Chinese policymakers face mounting pressure to rebalance growth. “China faces a ‘severe and complex’ external trade environment in 2026”, Wang Jun, vice minister of China’s customs administration, said. Although he added that China’s ‘foreign trade fundamentals remain solid’.
The International Monetary Fund has urged Beijing to reduce its reliance on exports by strengthening domestic consumption and investment. Yet a prolonged property downturn continues to weigh on consumer confidence, while limiting the impact of recent stimulus measures such as trade-in subsidies for appliances and vehicles.
“We expect domestic demand growth to stay tepid,” Rong said, noting that fiscal support appears weaker than last year. Gary Ng of Natixis forecasts export growth of about 3% in 2026, but expects China’s trade surplus to remain above $1 trillion, reinforcing exports as a central engine of growth.
Web Resources on the surplus of China’s Trade
1. APNews.com: China’s trade surplus surges 20% to a record $1.2 trillion, even with Trump’s tariffs
2. Reuters.com: China’s trade ends 2025 with record $1.2 trillion surplus
3. CNN.com: China notches historic $1.2 trillion trade surplus
4. Bloomberg.com: Chinese Exports Unexpectedly Slump for First Time Since February