China recorded its largest-ever trade surplus in 2025, reaching approximately $1.19 trillion, as export growth outpaced imports despite continued trade tensions with the United States. The figure marked a sharp increase on the previous year and underscored the resilience of China’s export-driven model even as tariffs and technology restrictions remained in place.
Exports grew by more than 5% year on year, while imports were broadly flat. Although shipments from China to the United States fell by around 20% over the year, exporters redirected goods to other markets, including parts of Asia, Europe and the Global South. This shift helped offset losses from the US market but also contributed to widening trade imbalances elsewhere.
The United States remains China’s single largest trading partner, yet bilateral trade has been reshaped by tariffs and export controls, particularly in high-technology sectors. Chinese officials have argued that restrictions on advanced technology imports, including semiconductors, weighed heavily on import growth. At the same time, Beijing has reiterated commitments to open its domestic market further in 2026.
The scale of the surplus has raised concerns internationally. Global policymakers have warned that a continued reliance on exports risks distorting trade flows and putting pressure on industries in importing countries. There are growing fears that large volumes of lower-cost Chinese goods could displace local production, increasing the likelihood of protectionist responses.
International financial institutions have urged China to rebalance its economy by strengthening domestic consumption, which has remained subdued. Weak consumer demand at home has limited import growth and reinforced dependence on external markets. Economists note that without stronger household spending, trade surpluses are likely to remain elevated.
Trade tensions have also intersected with broader technology disputes. While some US restrictions on chip exports have been selectively eased, Chinese authorities continue to promote domestic semiconductor development and maintain controls on certain foreign technology imports.
Overall, the 2025 data highlights the complexity of China’s position in the global economy: strong export performance alongside soft domestic demand, ongoing frictions with major trading partners, and increasing scrutiny over the global impact of its trade surplus.
