China’s trade surplus crosses $1.19 trillion for the first time:Earns more by selling abroad than it imports, despite Trump tariffs in 2025

China’s trade surplus has reached a historic high of $1.19 trillion (around ₹100 lakh crore), marking a 20% increase compared to 2024 exports. Even after adjusting for inflation, this is the largest trade surplus ever recorded by any country. According to data from China’s General Administration of Customs, the country posted a surplus of $114.14 billion (approximately ₹10.31 lakh crore) in December alone, making it China’s third-highest monthly surplus on record. A trade surplus refers to the gap where exports exceed imports. Chinese goods entering the US through third countries Former U.S. President Donald Trump imposed tariffs of up to 30% on Chinese goods, which reduced direct trade between China and the U.S. However, Chinese companies bypassed these restrictions by routing exports through Southeast Asia and other regions, allowing their products to continue reaching American markets. China continues to cut imports China is actively pursuing a “self-reliance” policy aimed at boosting domestic production and reducing dependence on foreign goods. The five-year economic plan announced in October, extending to 2030, reinforces this strategy. Notably, China has not recorded a trade deficit since 1993. Weak currency and domestic slowdown boost exports China’s currency, the Renminbi, remains weak, making Chinese exports cheaper for overseas buyers while raising the cost of imports. At the same time, the prolonged collapse of China’s real estate market has eroded household wealth. With declining purchasing power, consumers are cutting back on imported goods such as cars and cosmetics. Weak domestic demand has pushed manufacturers to export excess production at a larger scale. IMF warns China against over-reliance on exports Last month in Beijing, IMF Managing Director Kristalina Georgieva warned that China’s economy has become too large to depend solely on exports for GDP growth. She urged China to strengthen its currency and boost domestic consumption, cautioning that failure to do so could trigger global trade tensions. What is a trade surplus? A trade surplus occurs when a country earns more from exports than it spends on imports. China’s $1.19 trillion surplus means it earned roughly ₹100 lakh crore more from global trade than it spent. China far ahead of Japan and Germany China’s surplus dwarfs previous global records. China’s current surplus is three to five times larger than these historic highs. Related News India’s wholesale inflation hits an 8-month high India’s Wholesale Price Index (WPI) rose to 0.83% in December, the highest level in eight months, driven by rising food prices. Inflation stood at –0.32% in November and –1.21% in October, according to data released by the Commerce Ministry on December 14. Click here to read the full story.