China just posted a trade surplus bigger than Saudi Arabia’s entire economy. The manufacturing powerhouse reported a record $1.189 trillion trade surplus for 2025, surpassing previous records even when adjusted for inflation. China’s surplus now exceeds a tenth of the country’s entire economic output.
Despite a 20% drop in exports to the U.S., Chinese firms pivoted aggressively to other markets. Exports to Africa jumped nearly 26%, while shipments to Southeast Asia and the EU also surged. Many Chinese companies bypassed U.S. tariffs by routing goods through Southeast Asia. Auto exports hit 5.79 million vehicles, keeping China the world’s top auto exporter for a third straight year.
The surplus has been fueled by a weak yuan, deflation...