The government said on Wednesday that China’s trade surplus reached a record of about $1.2 trillion in 2025 as exports to other nations compensated for slower shipments to the United States as a result of President Donald Trump’s campaign of increased tariffs.
According to customs figures, China’s exports increased 5.5% to $3.77 trillion for the entire year as Chinese automakers and other manufacturers entered international markets.
At $2.58 trillion, imports stagnated. Over $992 billion was the trade surplus in 2024.
In dollar terms, China’s exports increased 6.6% in December compared to the previous year, above both the 5.9% year-over-year gain in November and the predictions of economists.
December saw a 5.7% year-over-year increase in imports, up from 1.9% in November.
After reaching $1.08 trillion in the first 11 months of last year, China’s trade surplus crossed the $1 trillion threshold for the first time in November.
Despite trade disputes and geopolitical difficulties, economists predict that exports will sustain China’s economy this year.
According to Jacqueline Rong, chief China economist at BNP Paribas, “We continue to expect exports to act as a big growth driver in 2026.”
Shipments to other markets in South America, Southeast Asia, Africa, and Europe have essentially offset the dramatic decrease in China’s exports to the United States following Trump’s return to office and intensification of his trade war with the second-largest economy in the world.
China’s exports to the United States decreased by 20% in 2025. Exports to Africa, however, increased by 26%. Southeast Asian nations saw a 13% increase, the European Union saw an 8%, and Latin America saw a 7% increase.
Strong global demand for computer chips and other devices, and the materials needed to make them, were among the categories that supported China’s exports, analysts said.
Last year, car exports increased as well. Electric cars and plug-in hybrids drove a 21% increase in auto exports to over 7 million units in 2025, the China Association of Automobile Manufacturers, an industry body, reported on Wednesday.
According to customs data, mechanical and electrical goods were the biggest export category last year, up 8.4% over the previous year.
Additionally, while exports of textiles, shoes, furniture, and other labour-intensive goods decreased, China increased its exports of fertilizer and grain.
China’s economy has continued to develop at a rate that is close to its official aim of roughly 5% annually, thanks to strong exports. This has alarmed nations that worry that an influx of low-cost imports is harming domestic businesses.
Wang Jun, the vice minister of China’s customs service, told reporters in Beijing that the country will face a “severe and complex” external trade environment in 2026.
However, he stated that China’s “foreign trade fundamentals remain solid.”
“More of China’s growth drivers will need to come from domestic demand even if exports sustain neutral or positive growth this year,” HSBC economists Erin Xin and Taylor Wang said in a report on Wednesday.
Last month, the head of the International Monetary Fund urged China to increase domestic investment and consumption to correct its economic imbalances and accelerate its transition away from reliance on exports.
Consumer confidence and domestic demand are still being negatively impacted by China’s protracted real estate downturn following the government’s crackdown on excessive borrowing, which led to defaults by numerous developers.
China’s leaders have focused their economic strategy on boosting consumer and corporate expenditure, but their efforts have had little effect thus far.
This included trade-in discounts offered by the government in recent months, which encouraged people to purchase newer, more energy-efficient products like cars and home appliances.
Rong of BNP Paribas stated, “We expect domestic demand growth to stay tepid.”
“The policy boost to domestic demand, especially the fiscal subsidy program for consumer goods, appears to be weaker than last year.”
Industry statistics show that domestic passenger car sales increased by 6% in 2025; however, as subsidies were reduced or eliminated in certain regions, sales declined towards the end of the year.
Gary Ng, a senior economist at the French investment firm Natixis, forecasts that China’s exports are expected to increase by roughly 3% in 2026, which is less than the 5.5% growth in 2025.
He believes China’s trade surplus will stay above $1 trillion this year due to the country’s modest import growth.
