Trade surplus hit record $1.2 trillion in 2025
Ministry report says China never sought large surplus
The Ministry of Commerce on Tuesday released a report rejecting claims that China’s manufacturing sector suffers from overcapacity, as the U.S. prepares to announce the results of a probe that could result in new tariffs on Chinese goods.
Massive capacity across a wide range of Chinese industries — from automaking to solar panels, cement, and steel manufacturing — has drawn growing attention from Beijing’s trading partners in recent years, according to information from the Ministry of Commerce report.
Chinese leaders have made rebalancing the economy a priority, the report noted. However, slowing domestic demand has prompted companies to expand into overseas markets, the report said. Surging exports pushed China’s trade surplus to a record of nearly $1.2 trillion last year.
The report, “China’s Position on the So-called Excess Capacity Issue,” stated that China has never sought a large trade surplus. It also took aim at recent talk of a “China shock 2.0” due to excess capacity, according to the report.
The U.S. probe examining the matter could result in new tariffs, though the report did not provide details on the probe’s scope or timing.