Key facts
- China achieved a record trade surplus of $1.2 trillion in 2025, up 20% from the previous year.
- Exports to the US fell by 19.5% in 2025, while exports to other global markets, particularly emerging economies, saw significant increases.
- High-tech goods exports rose 13%, with electric vehicles, lithium batteries, and solar panels up 27%.
- A trade truce in October reduced tariffs between the US and China to 20%.
- China's economy grew 5% in 2025, meeting its government target.
China has demonstrated remarkable resilience against trade pressures from the United States, achieving a historic $1.2 trillion trade surplus in 2025. This surplus, a 20% increase from the previous year, was driven by a strategic pivot of exports towards emerging markets in Southeast Asia, Africa, and Latin America, compensating for a significant 19.5% drop in exports to the US.
Despite the tit-for-tat trade confrontation and tariffs imposed by President Trump, Chinese companies have successfully expanded their global economic footprint. High-tech goods exports saw a 13% increase, with notable growth of 27% in electric vehicles, lithium batteries, and solar panels. Exports to regions beyond the US saw substantial gains, including Africa (up 26.5%), ASEAN nations (up 14%), the European Union (up 9%), and Latin America (up 8%).
Chinese officials, including Wang Jun, deputy administrator of the customs bureau, have highlighted the country's durability in a complex external environment. This economic strength has provided Beijing with confidence to engage in trade negotiations, culminating in a truce in October that reduced new tariffs on Chinese goods to 20%. Analysts suggest that China has established a degree of "mutual checks and balances" with the US, emerging with greater confidence in responding to potential uncertainties.
However, this surplus risks further inflaming trade tensions globally, as other nations express concerns about unfair trade practices and the influx of lower-cost Chinese imports. French President Emmanuel Macron has described the trade imbalance with China as unsustainable, echoing broader European concerns. Looking ahead, potential new tariffs on countries doing business with Iran could also impact China, a key economic partner for Tehran.