China reported a record $1.189 trillion trade surplus in 2025 as its exporters adapt to high US tariffs under the Trump administration. Customs data released Wednesday showed that China’s exports grew 6.6% in December compared to last year, surpassing economist forecasts of 3.0%. Imports rose 5.7%, also beating expectations. The surplus hit $1 trillion for the first time in November. Wang Jun, vice-minister at China’s customs administration, said, "The momentum for global trade growth looks to be insufficient, and the external environment for China’s foreign trade development remains severe and complex." Despite this, Wang added that China has more diversified trading partners, which "significantly enhanced" its ability to withstand risks. Chinese firms are shifting business to Southeast Asia, Africa, and Latin America to avoid US duties as the Trump administration aims to slow China’s manufacturing by redirecting US orders. This strategy helped China keep strong export growth even with US tariffs above 47.5%, which are higher than the roughly 35% level needed to maintain profits. China’s car industry saw exports jump 19.4% to 5.79 million vehicles last year, with electric vehicle shipments soaring 48.8%. China likely remains the world’s top auto exporter for the third year. However, Chinese leaders are aware of export imbalances. Premier Li Qiang recently called for "proactively expanding imports and promoting the balanced development of imports and exports." China also ended export tax rebates for its solar industry to ease tensions with the EU. These export gains come amid a slow property market and weak domestic demand in China. While the US and China agreed on a year-long tariff truce in October, duties remain high and continue to challenge trade relations. Chinese equity markets welcomed the strong trade data, with the Shanghai Composite and CSI300 indexes rising over 1% in early deals.