China surpasses $1 trillion trade surplus despite low exports to US
Despite high US tariffs, which have weighed heavily on shipments to the United States, China’s exporters continued to strengthen ties with other markets
China's annual trade surplus surpassed $1 trillion for the first time, reaching about $1.1 trillion after 11 months and exceeding the previous full-year record set in 2024, according to official data released on Friday.
The threshold was crossed as exports rebounded in November, rising 5.9% from a year earlier and outpacing a 1.9% increase in imports. The performance generated a monthly trade surplus of $111.68 billion, the third-largest China has ever recorded and stronger than economists had forecast.
The $1 trillion landmark was achieved despite steep US tariffs, which continued to weigh on shipments to the United States. Exports to the US fell 29% in November, marking an eighth straight month of double-digit declines. Manufacturers expanded trade ties elsewhere, however, more than offsetting the slump. Shipments to the European Union grew almost 15% last month, the fastest pace since July 2022, while exports to Africa climbed nearly 28%.
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Electronics and machinery exports rose nearly 10%, reflecting firm global demand for industrial and technology goods.
China's expanding trade surplus has added to tensions with key partners. French President Emmanuel Macron has warned that the EU may take "strong measures," including tariffs, if Beijing does not address the imbalance. German Foreign Minister Johann Wadephul recently raised concerns about trade curbs, rare-earth access and industrial "overcapacities" in sectors such as steel and electric vehicles.
Economists say rising frictions with the EU pose a significant risk to China's external demand outlook. Still, foreign demand has been the most consistent driver of growth this year, offsetting a prolonged housing downturn and weak consumer spending. Net exports have accounted for nearly one-third of China's economic expansion in 2025.
The record surplus is expected to support full-year GDP growth, keeping the government's target of around 5% within reach. Analysts, however, note that the economy remains highly reliant on overseas markets. Soft domestic demand and increased self-sufficiency among Chinese firms have limited import growth, reinforcing the surplus while underscoring structural imbalances.
Officials have said stronger domestic demand is "ultimately essential" to reduce dependence on exports, though economists expect the transition to be gradual. Until then, China's exposure to global markets and foreign trade actions will remain a key uncertainty.
