China Achieves Record $1.2 Trillion Trade Surplus Amidst Tariff Wars

• China recorded its largest-ever trade surplus of nearly $1.2 trillion in 2025, despite ongoing tariff pressures.
• The surplus was driven by stronger-than-expected export growth, with December exports rising 6.6% year-on-year.
• Beijing diversified its trade strategy, rerouting shipments to emerging markets like Southeast Asia, Africa, and Latin America.
• Exports to Africa surged by 25.8%, ASEAN bloc by 13.4%, and the EU by 8.4%, while shipments to the US fell 20%.
• Economists warn that the expanding surplus could intensify global trade tensions, especially with renewed tariff threats from the Trump administration.

Why It Matters: China achieved a record trade surplus by diversifying exports, but faces renewed tariff threats and global unease.