China recorded an almost $1.2 trillion trade surplus in 2025. Exports to the U.S. dropped sharply due to tariff pressure
China closed 2025 with a historic trade surplus of nearly $1.2 trillion, the highest on record. The strong performance was driven by a clear shift in export destinations, as companies reduced reliance on the U.S. market and expanded sales across other regions.
Officials said the new trade pattern helped cushion the economy from global pressure and ongoing tariff disputes.
Trade with the United States weakened over the year. Chinese exports to the U.S. fell by 20 per cent, while imports from America dropped by 14.6 per cent.
The decline reflects the impact of tariffs and rising political tension, which pushed Chinese firms to look for alternative markets.
As U.S. trade slowed, other regions stepped in strongly. Exports to Africa jumped by 25.8 per cent, showing rapid growth in demand. Shipments to ASEAN countries rose by 13.4 per cent, while exports to the European Union increased by 8.4 per cent.
The data highlights China’s expanding footprint in emerging and developed markets outside North America.
Monthly Surpluses Break New Ground
China recorded monthly trade surpluses above $100 billion on seven occasions in 2025. This was a sharp jump from 2024, when such levels were reached only once.
Government officials said this consistency showed that export diversification had strengthened the economy against trade shocks.
Financial markets reacted well to the figures. The Shanghai Composite and CSI300 indexes both gained more than one per cent after the data was released.
The Chinese yuan remained stable, signalling confidence among investors despite global uncertainty.
Economists noted that strong overseas demand helped offset weak spending at home. Export growth played a key role in maintaining overall economic balance and supporting steady growth.
However, analysts also warned that China’s heavy dependence on exports remains a concern.
Despite the record surplus, China continues to face scrutiny over trade practices and excess production capacity. Global attention on its export-led model is expected to remain intense.
Uncertainty may also increase in 2026, with U.S. President Donald Trump warning of possible new tariffs on countries trading with Iran, a move that could affect China’s global trade links.
For now, China’s export shift has delivered strong results, but the global trade environment remains unpredictable.
