China's Trade Surplus Hits Record $1.2 Trillion Despite US Trade Decline

• China's trade surplus reached a record $1.2 trillion in 2025, a 20% increase from 2024, driven by strong exports.
• December exports grew by 6.6% year-on-year, surpassing expert predictions of 3%, while imports also rose by 5.7%.
• Exports to the US fell by 30% in December and 20% for the full year 2025, with imports from the US also declining.
• China diversified its export markets, increasing trade with the EU (12% growth) and ASEAN countries (11% growth) in December.
• IMF and economists warn about China's growing trade imbalance and urge a shift towards domestic consumption amidst economic pressures.

Why It Matters: China achieved a record trade surplus by boosting exports to new markets, despite declining US trade.