China's trade surplus surges 20% to a record $1.2 trillion, even with Trump's tariffs

Trade Surplus and Exports - China's trade surplus reached a record of almost $1.2 trillion in 2025, driven by strong exports to various global markets despite a decline in shipments to the U.S. due to increased tariffs [1] - Total exports for 2025 rose by 5.5% to $3.77 trillion, while imports remained flat at $2.58 trillion, resulting in a trade surplus of over $992 billion in 2024 [2] - In December, exports increased by 6.6% year-on-year, surpassing economists' expectations, while imports rose by 5.7% [2] Export Dynamics - Exports to the U.S. fell by 20% in 2025, but this decline was offset by significant increases in exports to Africa (26%), Southeast Asia (13%), the European Union (8%), and Latin America (7%) [4] - The largest export category was mechanical and electrical items, which rose by 8.4% from the previous year, while exports of labor-intensive products like furniture and clothing saw declines [6] Economic Impact - Strong global demand for computer chips and automotive exports, particularly electric vehicles, contributed to the growth in exports, with auto exports surging by 21% to over 7 million units [5] - The robust export performance has helped maintain China's economic growth close to its official target of about 5%, raising concerns in other countries about the impact of cheap imports on local industries [6] Future Outlook - Economists anticipate that exports will continue to be a significant growth driver for China's economy in 2026, despite facing a "severe and complex" external trade environment [3][7]