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China Books Record $1.2 Trillion 2025 Trade Surplus as Exports Climb

Beijing is moving to cool the export surge with targeted rebate cuts following a pivot away from the U.S. market.

Overview

  • Official customs data show total trade reached 45.47 trillion yuan in 2025, with exports up about 5.5% to roughly $3.8 trillion and imports near $2.6 trillion, producing an unprecedented surplus close to $1.2 trillion.
  • December outperformed forecasts as exports rose 6.6% year on year and imports increased 5.7%, beating expectations especially for imports.
  • Bilateral trade with the United States slumped in 2025, with Chinese exports to the U.S. down about 20% and imports from the U.S. off 14.6%, while sales to ASEAN, Africa and the EU accelerated.
  • The IMF warned China to allow a stronger currency and shift growth toward domestic consumption to ease global imbalances tied to its outsized surplus.
  • Policy responses include ending VAT refunds for photovoltaic exports from April and phasing down battery export rebates, alongside evolving EU steps such as allowing minimum prices for China-made EVs.