China’s Trade Surplus Tops $1 Trillion

China’s trade surplus has surpassed $1 trillion for the first time, marking a historic expansion of the country’s export-driven economic power even as shipments to the United States continue to weaken.

Official customs data show that in the first 11 months of 2025, China’s goods trade surplus crossed the $1 trillion threshold, supported by stronger-than-expected export performance and subdued import growth.

Exports rose 5.9% year-on-year in November, while imports increased by only 1.9%, resulting in a monthly surplus of more than $112 billion, one of the highest ever recorded.

The surge comes despite a sharp contraction in exports to the U.S., which fell by nearly 29% in November amid sustained tariffs, supply-chain diversification, and ongoing geopolitical tensions.

To counter the U.S. downturn, Beijing has accelerated a strategic realignment of its export markets. Shipments to Southeast Asia, the European Union, Africa, and Latin America have expanded significantly, reflecting China’s ability to redirect its manufacturing output to regions with rising demand. Analysts note that this diversification has insulated the Chinese economy from policy-driven disruptions in Western markets.

The record surplus comes as China prepares major economic policy adjustments for 2026. Authorities are expected to introduce stimulus measures focused on domestic consumption, high-tech manufacturing, and stabilisation of private investment, all aimed at sustaining growth while reducing structural vulnerabilities.

However, the scale of China’s surplus has intensified concerns in Europe and the United States over global trade imbalances.

Policymakers in several Western capitals have described the imbalance as unsustainable and are evaluating potential trade responses, including targeted tariffs and anti-dumping actions.

Despite these challenges, China’s performance underscores its continued dominance in global manufacturing and export competitiveness.

The milestone also signals shifting patterns in global trade flows, as emerging markets increasingly become central destinations for Chinese goods amid weakening trans-Pacific commerce.

Source: Al Jazeera; Reuters; Financial Times; AP News; Washington Post