China's Record $1.2 Trillion Surplus Fuels Trade Tensions with US, Europe

• China reported a record $1.2 trillion trade surplus in 2025, sparking global concerns.
• Exports to Europe and Southeast Asia surged, offsetting a 20% drop in US-bound exports.
• China blames US high-tech export curbs for limiting imports, while Trump's tariff threats loom.
• Beijing implemented rare earth export curbs, shipping a record 62,585 tonnes last year.
• Analysts warn China's export-driven growth model is unsustainable and fuels global trade tensions.

Why It Matters: China's massive trade surplus and high-tech export curbs escalate global trade tensions, especially with the US.