China’s trade surplus reached a record high last year, nearing $1.2 trillion (€1.031 trillion), according to government data released Wednesday. This surge is attributed to increased exports to countries outside of the United States, offsetting a decline in shipments to the US amid ongoing trade tensions.
Export Growth and Shifting Markets
Beijing reported exports of $3.77 trillion (approximately €3.644 trillion) in 2025, a 5.5% increase. Imports remained relatively stable at $2.58 trillion (approximately €2.492 trillion). This disparity resulted in a trade surplus of $992 billion (approximately €958 billion). December saw particularly strong export growth, climbing 6.6% year-over-year, exceeding both economists’ expectations and November’s 5.9% increase. Imports also rose in December, up 5.7% compared to 1.9% the previous month.
The demand for computer chips and related materials played a key role in supporting China’s export performance, analysts noted. This strong export activity has contributed to economic growth near China’s target of 5% annually.
Trade Tensions and Economic Policy
Despite the positive trade figures, concerns remain in some countries about the potential impact of inexpensive Chinese imports on local industries. Beijing has focused on stimulating domestic consumption, including subsidies for replacing older appliances and vehicles with more energy-efficient models, though the impact of these measures has been limited so far.
Wang Jun, vice minister of China’s customs administration, acknowledged a “severe and complex” external trade environment for 2026, but expressed optimism, stating that China’s “foreign trade fundamentals remain solid.”
EU-China Trade Developments
Recent developments indicate a potential shift in trade relations with the European Union. Brussels announced new guidelines allowing Chinese electric vehicle (EV) producers to propose minimum prices, potentially replacing existing tariffs imposed in October 2024. This move represents a de-escalation in the EV dispute, as both sides negotiate a plan for Chinese manufacturers to adjust pricing for more equitable competition.
China currently ranks as the EU’s second-largest trading partner for goods, following the United States.
Looking Ahead
Economists, including Jacqueline Rong, chief China economist at BNP Paribas, anticipate that exports will continue to be a significant driver of China’s economic growth in 2026. However, ongoing trade friction and geopolitical tensions could present challenges. A possible next step is continued negotiation between China and the EU regarding EV pricing. It is also likely that China will continue to diversify its export markets to mitigate risks associated with trade disputes. Further shifts in global demand for key components, like computer chips, could also influence China’s trade performance.
Frequently Asked Questions
What was China’s trade surplus in 2025?
China’s trade surplus surged to a record of almost $1.2 trillion (€1.031 trillion) in 2025.
How have US-China trade relations impacted China’s exports?
China’s exports to the United States have decreased since US President Donald Trump intensified trade battles, but sales to other markets have increased to compensate.
What is the EU doing to address trade concerns with China?
The EU has published new guidelines allowing Chinese electric vehicle producers to submit offers for minimum prices, potentially replacing tariffs imposed in October 2024.
How might evolving global economic conditions affect China’s trade strategy in the coming years?
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