"2025 was a turbulent year for China. The country began the year battling geopolitical headwinds and weak domestic demand. By April, new tariffs and trade frictions triggered some of the most significant trade actions in decades. Yet by November, the story had changed. China's annual trade surplus passed $1 trillion, a record high. GDP growth remained steady at around 5%. The country seems to have shrugged off concerns of "deglobalization.""
"China has long dominated global manufacturing, thanks to its cost competitiveness and integrated supply chains. That strength remains intact despite higher U.S. tariffs in 2025, which have now stabilized at around 50%. The tariffs barely dented China's trade: The country's share of global goods exports held steady at around 14%, four times greater than India and Vietnam combined. The reason is that China has already broadened its trade partners."
2025 featured geopolitical headwinds, weak domestic demand, and new tariffs that triggered major trade actions by April. By November, China's annual trade surplus exceeded $1 trillion and GDP growth hovered near 5%, signaling resilience. Higher U.S. tariffs stabilized around 50% but had limited impact as China maintained about 14% of global goods exports and diversified toward Global South markets. Exports shifted toward knowledge-intensive goods like electronics and automobiles and away from labor-intensive items. 2026 will test export resilience amid tariff uncertainty, rising local competitors, and shifting trade patterns, creating both challenges and disciplined opportunities for global executives.
Read at Fortune
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