China Posts Record $1.2 Trillion Trade Surplus

According to official data released by China’s General Administration of Customs, exports in December rose by 6.6% year-on-year in U.S. dollar terms—more than double the 3.1% forecast by Bloomberg analysts and above November’s 5.9% increase. Imports also surged by 5.7%, far surpassing the 0.9% expectation and the previous month’s 1.9% growth.

The record surplus was driven by Chinese manufacturers redirecting shipments away from the U.S. to other markets. While exports to the U.S. fell by 20% last year, exports to the EU rose by 8.4% and to Southeast Asia by 13.4%.
This massive surplus is likely to heighten concerns among China’s trade partners, particularly the European Union, which has criticized the flood of low-cost Chinese goods.

The EU has urged Beijing to stimulate domestic demand and ease import restrictions on manufactured goods. French President Emmanuel Macron previously described China’s trade surpluses as “unbearable.”
China’s total exports in 2025 rose by 5.5% compared to the previous year, while imports remained flat.

Vice Chairman of China’s General Administration of Customs, Wang Jun, stated that export controls on high-tech goods by some trade partners—implicitly referring to the U.S.—have hindered China’s ability to increase imports. “Some countries are politicizing economic and trade issues and restricting exports of high-tech products to China under various pretexts. Otherwise, we would have imported more,” he said, adding that “there is ample room for import growth.”
Earlier this year, Trump threatened tariffs of up to 145% on Chinese goods. In response, Beijing imposed its own tariffs and restricted exports of rare earth elements critical to global manufacturing. These tensions led to a one-year trade truce agreed upon during a summit in South Korea in October.

According to Reuters, China’s rare earth exports in 2025 reached their highest level since at least 2014, totaling 62,585 tons of 17 elements—a 12.9% increase year-on-year.

Economists warn that China’s heavy reliance on manufacturing and exports, amid weak domestic consumption and a prolonged real estate slump, poses risks to sustainable growth. Eswar Prasad, an economics professor at Cornell University, told the Financial Times: “China’s eye-popping trade surplus is both a symbol of its export strength and a sign of weakness in its growth model.

An economy that relies more on external than internal demand is a troubling signal for both China and the global economy.”