China has reported a record annual trade surplus of $1.2 trillion for 2025, the world\u2019s second-largest economy achieving this milestone despite looming trade war threats from US President Donald Trump. According to official data released by the customs administration on Wednesday, dollar-denominated goods exports surged 6.6% in December compared to the same period the previous year. This growth rate more than doubled the 3.1% median estimate from a Bloomberg analyst poll and surpassed the 5.9% increase recorded in November.<\/p>\n
Imports rose 5.7% in dollar terms last month, significantly outperforming analyst expectations of 0.9% and the previous month’s 1.9% growth.<\/p>\n
The annual trade surplus exceeded the $1 trillion mark for the first time, surpassing the $993 billion recorded last year. This surge was driven by Chinese manufacturers redirecting shipments from the US market toward alternative destinations. While exports to the US plummeted 20% last year, shipments to the EU rose 8.4% and exports to Southeast Asia climbed 13.4%.<\/p>\n
This massive surplus is expected to heighten anxieties among China\u2019s trading partners\u2014particularly the EU, which has complained that its markets are being flooded with low-cost Chinese goods. Brussels has demanded that Beijing stimulate domestic demand and reduce its own barriers to manufactured imports.<\/p>\n
China\u2019s total exports for 2025 increased 5.5% year-on-year, while imports remained flat.<\/p>\n
Wang Jun, Vice Minister of the General Administration of Customs, stated on Wednesday that export controls on high-tech products by trading partners have hindered China from importing more\u2014a veiled reference to the US. Successive US administrations have imposed strict restrictions on China\u2019s access to advanced semiconductors.<\/p>\n
“Some countries are politicizing economic and trade issues, restricting high-tech exports to China under various pretexts; otherwise, we would have imported more,” Wang said, adding that there is “broad scope” for import growth.<\/p>\n
Trump had earlier this year threatened tariffs of up to 145% on Chinese goods. Beijing retaliated with its own tariffs and restricted exports of rare earth elements, which are critical to global manufacturing. these maneuvers eventually led to a one-year ceasefire in the trade war, agreed upon during an October summit in South Korea.<\/p>\n
According to Reuters calculations, China\u2019s rare earth exports last year reached their highest level since at least 2014. In 2025, China exported 62,585 tons of the 17 elements, representing a 12.9% annual increase.<\/p>\n
European trading partners remain skeptical of Beijing\u2019s commitment to reducing trade surpluses, which French President Emmanuel Macron characterized as “unbearable” last year.<\/p>\n
Economists also warn that the Chinese economy remains excessively dependent on manufacturing and exports for growth amid weak domestic consumption and a protracted real estate slump.<\/p>\n
Eswar Prasad, a professor of economics at Cornell University, noted: “China\u2019s staggering trade surplus is both a symbol of its export prowess and a symptom of the weaknesses in its growth model.”<\/p>\n