China's annual trade surplus reached an estimated $1.19 trillion in 2025, marking the first time the country's yearly trade surplus has exceeded the $1 trillion threshold. This record surplus was achieved despite the implementation of tariffs by the United States and was supported by a strategic redirection of exports to alternative global markets.
Record Trade Performance
In 2025, China's trade surplus grew significantly from the 2024 figure of over $992 billion. The full-year total exports increased by 5.5% to $3.77 trillion, while imports saw a modest rise of approximately 0.5% to $2.58 trillion. The trade surplus surpassed $1 trillion for the first time in November 2025. Throughout the year, monthly trade surpluses exceeded $100 billion on seven separate occasions, compared to once in 2024.
Monthly data indicated that exports in December 2025 increased by 6.6% year-on-year in dollar terms, building on a 5.9% increase in November. Imports in December rose by 5.7% year-on-year, an increase from 1.9% in the preceding month.
Global Market Shifts and Diversification
The record surplus occurred amidst higher tariffs imposed by the U.S. While China's exports to the United States decreased by approximately 20% in 2025 (and nearly 29% in November), and U.S. imports from China were down 14.6%, Chinese firms diversified their export destinations. Significant increases were observed in exports to:
- Africa: approximately 26%
- Southeast Asian nations (ASEAN bloc): approximately 13%
- European Union: approximately 8%
- Latin America: approximately 7%
Reports suggest that China may have utilized indirect shipping routes, also known as trans-shipping, through proxy nations subject to lower tariffs. This practice may have influenced the reported figures for direct exports to the U.S.
Key Export Categories
Export growth was driven by strong international demand for specific product categories. These included computer chips, other electronic devices, artificial intelligence-related products, robotics, and green technology. China's automotive industry experienced a notable increase, with overall exports rising by 19.4% to 5.79 million vehicles. Shipments of pure electric vehicles (EVs) saw a near 50% increase. China is projected to maintain its position as the world's leading automotive exporter for the third consecutive year.
Domestic Economic Context and Challenges
While strong export performance contributed to China's economy growing near its official target of approximately 5% annually, the domestic economy encountered challenges. A prolonged downturn in the property sector, coupled with increasing debt, has affected consumer confidence, business investment, and domestic demand. This has contributed to slower import growth. The International Monetary Fund (IMF) has suggested that China address its economic imbalances by boosting domestic demand and investment to reduce its reliance on exports.
Internationally, the increase in Chinese exports has generated concerns in some countries, such as France, regarding potential impacts on their local industries.
External Factors and Outlook
Several external factors contributed to China's export competitiveness, including a weaker Chinese yuan and global inflation, which made Chinese imports more appealing to some markets.
Wang Jun, a vice minister at China's customs administration, characterized the external trade environment for 2026 as "severe and complex." However, he affirmed that China's "foreign trade fundamentals remain solid" and that the diversification of trading partners has enhanced the nation's ability to withstand risks. Economists anticipate that China will continue to expand its global market share. Projections for 2026 suggest that China's exports may grow by approximately 3%, a decrease from 2025's 5.5%, but the trade surplus is expected to remain above $1 trillion due to anticipated slow import growth. Beijing has indicated a need to balance its industrial exports to ensure sustained success.