China reported a record trade surplus of $1.189 trillion for 2025, customs data showed on Wednesday, as exports remained strong despite renewed US tariffs under President Donald Trump. The surplus, equivalent to the GDP of a top-20 economy like Saudi Arabia, broke the trillion-dollar ceiling for the first time in November.
Outbound shipments grew 6.6% year-on-year in December, beating expectations of a 3.0% rise, while imports rose 5.7%, also above forecasts. The benchmark Shanghai Composite index rose over 1% in morning trading following the data.
Chinese firms have shifted focus to Southeast Asia, Africa, and Latin America to offset US duties, which stand at 47.5% on Chinese goods—above the roughly 35% level analysts say allows profitable exports to the US. The record surplus risks further unsettling economies concerned about China's trade practices and overcapacity.
Vice-Minister Wang Jun of China's customs administration said the external environment remains severe but that China's ability to withstand risks has been enhanced through diversified trading partners. He added that the fundamentals for foreign trade remain solid.
China's car exports jumped 19.4% to 5.79 million vehicles, with pure electric vehicle shipments up 48.8%, likely keeping China the world's top auto exporter for a third year. However, Beijing has shown signs of moderating industrial exports, with Premier Li Qiang calling for expanding imports and promoting balanced trade.
China also scrapped subsidy-like export tax rebates for its solar industry and passed revisions to its foreign trade law, signalling a shift towards freer trade. Economists expect China to continue gaining global market share, aided by overseas production hubs and strong demand for lower-grade chips and electronics.
