China's annual trade surplus hit a record $1.2 trillion in 2025, driven by a surge in exports during December that significantly exceeded forecasts. The robust performance underscores resilient global demand for Chinese goods despite ongoing economic headwinds.
- China's 2025 trade surplus reached $1.2 trillion, a record high.
- December exports grew 12.8% year-on-year, exceeding the 9.5% forecast.
- Total exports for 2025 were $4.6 trillion, up 8.7% from 2024.
- Imports rose 3.9% to $3.4 trillion, creating a widening trade gap.
- Renminbi strengthened 2.4% against the U.S. dollar in 2025.
- Foreign exchange reserves reached $3.8 trillion by year-end.
China's trade surplus reached a record $1.2 trillion in 2025, fueled by a 12.8% year-on-year increase in exports during December, according to official data. This marked a sharp rebound from November's 5.3% growth and significantly surpassed the 9.5% expected by market analysts. The surge in December exports was particularly strong in electronics, electric vehicles, and industrial machinery, reflecting sustained demand from markets in Europe, Southeast Asia, and the Middle East. The expansion in exports contributed to a broader trend of trade strength observed throughout the year. Total exports for 2025 amounted to $4.6 trillion, up 8.7% from 2024, while imports rose only 3.9% to $3.4 trillion, narrowing the gap between inflows and outflows. This divergence has amplified concerns over global imbalances and trade tensions, particularly with the United States and European Union, where policymakers are monitoring the implications for domestic industries. The record surplus has implications for global financial markets and currency dynamics. The renminbi (CNY) strengthened by 2.4% against the U.S. dollar over the year, supported by strong foreign exchange reserves that climbed to $3.8 trillion by year-end. Meanwhile, China’s central bank maintained its cautious monetary policy stance, signaling readiness to intervene in foreign exchange markets if necessary to stabilize capital flows. Global manufacturers and supply chain managers are reassessing sourcing strategies amid the persistent trade advantage. Countries such as Vietnam, India, and Mexico are experiencing increased pressure to diversify production and reduce reliance on Chinese supply chains, though many remain integrated within complex regional networks centered on China’s manufacturing base.