China blames US as record $1.2tn trade surplus fuels tensions

China accused the United States of driving global trade imbalances after posting a record $1.2tn surplus in 2025, even as President Donald Trump escalated tariff threats.

Official data on Wednesday showed exports rose 6.6 per cent in December from a year earlier, more than twice analysts’ expectations, while imports gained 5.7 per cent, also beating forecasts. The full-year surplus topped $1tn for the first time, surpassing 2024’s $993bn.

Shipments to the US plunged 20 per cent last year as Chinese firms redirected goods toward other markets, including the EU, where exports rose 8.4 per cent, and south-east Asia, up 13.4 per cent. Beijing’s growing trade advantage has heightened concern in Europe, which has urged China to open its market and strengthen domestic demand.

Vice customs minister Wang Jun said restrictions on high-tech exports — aimed squarely at Washington’s semiconductor controls — were holding back China’s imports, arguing the country could buy more if not for foreign limits.

Trump threatened tariffs of up to 145 per cent on Chinese goods in 2025, prompting Beijing to retaliate and impose rare earth curbs before both sides agreed to a truce in October. Rare earth exports still climbed nearly 13 per cent last year to their highest level in at least a decade.

Economists warn the record surplus reflects deeper challenges, including weak consumer spending and reliance on manufacturing. Cornell University’s Eswar Prasad said China’s export-driven model is “a bad omen” for both its own growth and the world economy.