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China Posts Record $1.2 Trillion 2025 Trade Surplus as Exports Shift From U.S.

The export surge has intensified pressure for a pivot toward domestic demand.

Overview

  • Official customs data show a roughly 20% jump in the surplus from 2024 to about $1.2 trillion, with exports up 5.5% and imports largely flat.
  • Sales to the United States fell about 20% for the year, including a 30% drop in December, while shipments to the European Union rose 8.4%, Southeast Asia 13.4% and Africa 25.8%.
  • Analysts report signs that some goods are routed through Southeast Asian countries to avoid U.S. tariffs, a pattern inferred from trade flows rather than direct proof.
  • China’s exports of rare earths hit a record in 2025, heightening concerns over strategic dependencies highlighted by cases such as chipmaker Nexperia.
  • The European Commission is urging Beijing to boost household spending to absorb excess capacity, echoing warnings from IMF chief Kristalina Georgieva and France’s Emmanuel Macron about the sustainability of export-led growth.