China’s Trade Surplus Hits Record $1.2 Trillion in 2025 Despite US Tariffs

China reported a $1.2 trillion trade surplus for 2025, customs data released on Wednesday showed, as per news reports.  

This was the highest annual surplus on record and the 1st time it crossed the $1 trillion level. The result came despite higher tariffs imposed by the United States since President Donald Trump returned to office last year. 

Trade Shifts Away from the US 

Trade with the United States weakened during the year. Exports to the US fell about 20% in dollar terms, while imports from the US declined 14.6%.  

Chinese exporters instead increased shipments to other regions. Exports to Africa rose 25.8%, shipments to ASEAN countries grew 13.4%, and exports to the European Union increased 8.4%. 

End-of-Year Data Shows Steady Growth 

Trade activity strengthened towards the end of 2025. Exports rose 6.6% year on year in December, up from 5.9% in November and above forecasts.  

Imports increased 5.7%, following a 1.9% rise a month earlier. China recorded monthly trade surpluses above $100 billion on seven occasions during the year. 

Overall Trade Volumes Expand 

China’s total foreign trade in goods reached 45.47 trillion yuan ($6.51 trillion) in 2025, an increase of 3.8% from the previous year.  

Exports totalled 26.99 trillion yuan, growing 6.1%, while imports stood at 18.48 trillion yuan, up 0.5%. Export growth continued to outpace imports over the year. 

Sector and Commodity Trends 

Rare-earth exports climbed to their highest level since at least 2014, even after Beijing introduced controls on some medium and heavy elements from April. Agricultural imports also rose, with China purchasing record volumes of soybeans, largely sourced from South America as buying from the US remained lower. 

Markets and Currency Response 

Following the data release, China’s yuan remained broadly stable. Mainland equity markets moved higher, with the Shanghai Composite index and CSI300 index each rising more than 1% in morning trade. The data suggested that tariff measures had limited impact on China’s trade with markets outside the US. 

Read More: Export Preparedness Index Highlights India’s $8–10 Trillion Export Ambition by 2047! 

Conclusion 

The 2025 figures show that China maintained a large trade surplus by expanding exports beyond the US. While bilateral trade with the US declined, overall trade volumes increased as exporters redirected shipments to other regions. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.