China has reported a staggering trade surplus of over $1.189 trillion in 2025, setting a new record and cementing its position as a dominant force in the global economy. Despite the ongoing trade tensions with the United States under the Trump administration, the world’s second-largest economy has demonstrated remarkable resilience, diversifying its trading partners and adapting to the changing landscape.
The surge in exports, which grew by 6.6% in December compared to the previous year, has been driven by Chinese firms shifting their focus to markets in Southeast Asia, Africa, and Latin America to offset the impact of US tariffs. This strategic move has enabled China to maintain its stronghold in the global trade arena, even as the external environment remains “severe and complex,” according to Wang Jun, a vice-minister at China’s customs administration.
The record-breaking trade surplus, which is on par with the GDP of a top-20 economy like Saudi Arabia, has raised concerns among China’s trading partners about the country’s trade practices and overcapacity. However, Beijing has shown signs of recognizing the need to moderate its industrial exports to sustain its success, with the Chinese Premier, Li Qiang, calling for “proactively expanding imports and promoting the balanced development of imports and exports.”
The Chinese government has also taken steps to address these concerns, scrapping export tax rebates for its solar industry, a long-standing point of friction with the European Union. Additionally, lawmakers have passed revisions to the foreign trade law, signaling China’s willingness to shift from industrial subsidies towards freer and more open trade, in line with the requirements of a major trans-Pacific trade pact.
Despite the year-long truce on tariffs between the Trump administration and Chinese President Xi Jinping, US duties on Chinese goods remain well above the level that analysts say would enable Chinese firms to export to the US at a profit. This ongoing tension highlights the complex and ever-evolving nature of the China-US trade relationship, which continues to shape the global economic landscape.
As China consolidates its position as a trade powerhouse, the world will be closely watching how the country navigates the delicate balance between its economic ambitions and the concerns of its trading partners, ultimately determining the trajectory of its global influence in the years to come.
