China vows to continue opening its economy amid trade tensions with U.S.

China reported a record $1.2 trillion trade surplus for 2025 and has reached a temporary truce with the U.S. on trade. The very large surplus points to strong net export performance and could put upward pressure on the yuan and Chinese export-oriented sectors. The trade truce reduces near-term policy risk but its temporary nature warrants caution; monitor FX moves, export volumes, and supply-chain-sensitive sectors for portfolio positioning.

Analysis

China reported a record $1.2 trillion trade surplus for 2025 and has reached a temporary truce with the U.S. on trade. The very large surplus points to strong net export performance and could put upward pressure on the yuan and Chinese export-oriented sectors. The trade truce reduces near-term policy risk but its temporary nature warrants caution; monitor FX moves, export volumes, and supply-chain-sensitive sectors for portfolio positioning.