CHINA yesterday reported a record trade surplus of nearly $1.2 trillion in 2025, led by booming exports to non-US markets as producers looked to build global scale to fend off sustained pressure from the Trump administration.
A push by policymakers for Chinese firms to diversify beyond the world’s top consumer market by shifting focus to Southeast Asia, Africa and Latin America paid dividends, cushioning the economy against US tariffs and intensifying trade, technology and geopolitical frictions since President Donald Trump returned to the White House last year.
“China’s economy remains extraordinarily competitive,” said Fred Neumann, chief Asia economist at HSBC. “While this reflects gains in productivity and the rising technological sophistication of Chinese manufacturers, it is also due to weak domestic demand and attendant excess capacity.”
Heading into 2026, the challenges for Beijing are aplenty, including deflecting concerns from an increasing number of global capitals about China’s trade practices and overcapacity, as well as their overreliance on key Chinese products.
The manufacturing juggernaut’s full-year trade surplus came in at $1.189trn, customs data showed yesterday, having broken the trillion-dollar ceiling for the first time in November.
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