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China Posts Record $1.2 Trillion 2025 Trade Surplus as Exports Outpace Imports

Global pushback is prompting Beijing to scale back export incentives.

Overview

  • Customs data show exports rose 5.5% to about $3.8 trillion in 2025 while imports held near $2.6 trillion, with total trade value topping 45 trillion yuan, according to Vice Customs Minister Wang Jun.
  • December outperformed forecasts as exports grew 6.6% year over year and imports increased 5.7% year over year.
  • Bilateral flows with the United States fell sharply—Chinese exports to the U.S. dropped about 20% and imports from the U.S. fell 14.6%—as suppliers redirected goods to ASEAN (+13.4%), Africa (+25.8%) and the European Union (+8.4%).
  • Beijing will remove VAT refunds for photovoltaic exports from April and reduce battery export rebates, while the EU is allowing minimum prices for China-made electric vehicles in place of higher tariffs.
  • The IMF is urging China to reduce reliance on export-led growth and bolster domestic consumption, citing strains from weak household demand, a property slump and a relatively weak renminbi.