Against the Odds: China Defies Trump Tariffs with Record Trade Surplus

In a surprising turn of events, China has reported a record trade surplus of $1.19 trillion for the year 2025, despite the tumultuous impact of Donald Trump’s tariffs on its economy. This significant figure, marking the first time China has surpassed the $1 trillion milestone in a full-year trade surplus, showcases the resilience of Chinese exports amid global economic challenges.

Beijing’s announcement reveals that the monthly export surpluses crossed $100 billion on seven occasions last year, highlighting a stark contrast to the expectations set by the tariff campaign initiated by Trump. While trade with the United States experienced a decline, this was offset by an impressive increase in exports to regions like South East Asia, Africa, and Latin America.

Wang Jun, the deputy director of China’s customs, characterized the trade figures as “extraordinary and hard-won”, considering the profound changes in global trade dynamics. He specifically noted a significant uptick in the exports of green technology, artificial intelligence-related products, and robotics. This growth in exports can largely be attributed to strong global demand, particularly as trade relationships with various countries expanded, compensating for a slower domestic market.

China’s economy, grappling with issues such as a property crisis and rising debt, saw imports increase minimally by 0.5%. Consequently, the national economy had less reliance on foreign goods. Furthermore, a weaker yuan, coupled with burgeoning stockpiles of goods, made Chinese exports particularly appealing in a world facing inflationary pressures.

Despite the positive sales figures, trade analyst Deborah Elms described the results as a “mixed blessing” for Beijing. Although China has reaped the benefits from increased sales and job creation abroad, there is an impending threat of greater scrutiny and competition from foreign markets frustrated by the flood of low-priced Chinese products. Elms anticipates that China’s strong trade performance will likely persist into 2026, further embedding its goods and services within global businesses. However, she warns of the uncertainties looming on the horizon as countries react to Chinese market dominance.

The backdrop of this trade success is a tense relationship with the U.S., exacerbated by Trump’s earlier imposition of sweeping tariffs on over 90 countries, particularly targeting China. Despite a temporary thaw in relations during a meeting between Trump and Xi Jinping, the underlying tariff tensions remain a hurdle for future trade with the U.S., which continues to impose moderate tariffs affecting Chinese exports.