China’s trade surplus reached a record $1.076 trillion in the first 11 months of 2025. This comes even as exports to the US dropped by nearly a third in November. Chinese premier Li Qiang said on Tuesday, “the mutually destructive consequences of tariffs have become increasingly evident.” China’s exports are now flooding other parts of the world, including south-east Asia and Europe. Experts say many goods sent to south-east Asia are later shipped to the US to avoid tariffs, a tactic called trans-shipment. For example, US imports from Indonesia rose nearly 33% this year, driven by redirected Chinese products. Imports from Malaysia and the Philippines also increased. The trade war has reduced trade between the US and China but hasn’t stopped China’s dominance in global exports. China is growing in hi-tech goods like electric vehicles and semiconductors, with semiconductor exports jumping 24.7% this year. Exports to the EU rose by 14.8% in November compared to 0.9% in October. French president Emmanuel Macron recently told Chinese leader Xi Jinping that the EU could impose tariffs if trade imbalances are not addressed. Morgan Stanley economists expect China’s share of global exports to rise from 15% to 16.5% by 2030. China economist Zichun Huang said, “We expect China’s exports will remain resilient, with the country continuing to gain global market share next year.” This data proves China’s economy still relies heavily on exports despite efforts to boost domestic demand. Xi Jinping chaired a meeting of the Communist Party politburo emphasizing the need to “continuously expand domestic demand” and make consumption the “main driver” of the economy. However, boosting consumer spending is tough. Chinese households prefer saving, especially after pandemic effects and the real estate crash reduced many savings. Consumption in China is about 50% of GDP compared to about 80% in the US.