Exports are booming
China’s Trade surplus reaches record levels
Despite the tariff dispute with the USA and global trade conflicts, China achieved a record foreign trade surplus in 2025. Exports increased significantly while imports stagnated.
China’s foreign trade achieved an unprecedented surplus in 2025 despite the ongoing tariff dispute with the USA and global trade conflicts. According to the Chinese customs authority, exports rose by 5.5 percent to around $3.8 trillion compared to the previous year. Imports remained almost unchanged at about $2.6 trillion. The trade surplus grew to almost $1.2 trillion.
Weakness Domestic demand
This development also highlights structural problems in the Chinese economy. While the export-oriented industry is increasingly pushing its goods onto the world market, domestic demand remains weak. China had already achieved a record in 2024 with a trade surplus of around one trillion dollars, which has now been exceeded again.
The data published at the same time for December also clearly beat analysts’ forecasts. Accordingly, exports rose by 6.6 percent compared to the same month last year. Imports increased by 5.7 percent. Expectations had previously been significantly lower, especially for imports, with an increase of 0.9 percent.
Customs dispute with the USA burdened
The 2025 trading year was marked by the conflict with the United States. China’s exports to the USA fell by 20 percent and imports fell by 14.6 percent. Despite temporary rapprochements, US tariffs on Chinese goods remained high. Many Chinese companies are therefore increasingly looking for sales markets outside the USA.
Trade with Africa and the Southeast Asian ASEAN states grew particularly strongly. Exports to Germany also increased significantly: they rose by 10.5 percent to around 118 billion dollars. Imports from Germany, on the other hand, fell slightly. Since October, China has been Germany’s most important trading partner again, replacing the USA.
EU criticism of Chinese export flood
Meanwhile, dissatisfaction is growing in the European Union about the increasing competitive pressure from Chinese exports. Criticism includes, among other things, overcapacity in industry, difficult market conditions for European companies in China and what some observers believe to be an undervalued Chinese currency.
The tightening of Chinese export controls for certain raw materials and industrial goods caused additional concerns in 2025. They temporarily led to uncertainties in the supply chains in Europe.
Positive signals from Beijing
Recently, however, there have been signs of a cautious rapprochement between Beijing and Brussels. The EU opened the way for manufacturers of electric cars produced in China to set minimum prices instead of accepting tariff surcharges.
In addition, China wants to cancel the VAT refund for photovoltaic exports from April in order to slow down falling prices. Cheap goods from China had a serious impact on the solar industry in Europe. Export concessions for battery products are also to be gradually reduced.
