China’s trade surplus reached a record $1.2 trillion in 2025 and kept widening in 2026, as booming exports to non-US markets more than offset declines in shipments to America.

In August 2026 alone, exports jumped 25% from a year earlier and the monthly surplus hit a record $119.1 billion, customs data showed.

Auto exports surged 43% and semiconductor exports rocketed nearly 130% in August, while exports to Southeast Asia rose 30% and to Latin America 17.5%.

The imbalance is drawing political heat. US Treasury Secretary Scott Bessent has urged China to reduce its reliance on exports, and talk of a new “Plaza Accord” to rebalance currencies has resurfaced in Washington and Brussels.

Economists say tariffs have simply redirected Chinese exports to other markets rather than shrinking the surplus, which reflects weak domestic demand at home.

Beijing insists it is not seeking to maximise its surplus — but with exports powering growth, pressure for structural reform is mounting.