China's super $1.2 tn surplus also tells us about unresolved contradictions in its economic model

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China's record $1.2 trillion trade surplus in 2025 highlights a savings-investment imbalance, not just export strength. Despite tariffs and global slowdown, China rerouted exports and established overseas production, masking domestic weaknesses like low consumption and declining investment returns. This surplus acts as a macroeconomic crutch, delaying necessary reforms.