China's $1 Trillion Trade Surplus: What It Means for Global Trade and UK Exporters

By Export Unlocked, Megi Dervishi | March 2025

In January 2025, China made global headlines after announcing a record-breaking $990 billion trade surplus for 2024, the largest ever recorded in modern economic history.

This news, revealed by China’s General Administration of Customs, signals a seismic shift in global trade patterns and presents both risks and opportunities for UK exporters.

What Happened?

China exported $3.58 trillion worth of goods and services last year, while importing just $2.59 trillion. This export-heavy economy, driven by everything from electric vehicles to solar panels, is powering ahead despite internal economic struggles like a deflated housing market and cautious consumer spending.

This manufacturing surge has:

  • Made China the world’s largest car exporter
  • Enabled near-total dominance in solar panel production
  • Seen rapid growth in sectors like lithium batteries, robotics, and electronics

All while many of its trading partners—both developed and developing—struggle to compete.

 

Why It Matters for UK Businesses

For UK exporters and trade professionals, this news affects strategy in several key ways:

1. Increased Global Competition

If you’re exporting goods in sectors like EVs, solar, or electronics, you’re now likely competing directly with China on price, speed, and scale. China’s overproduction is driving down global prices, which could squeeze UK margins.

2. Policy Response Is Growing

The US, EU, Brazil, Turkey, India, and Indonesia are already erecting new tariffs and trade barriers to counter China’s export dominance. This might open up protected markets for UK businesses, but only if you’re ready to respond strategically.

3. Localising Supply Chains

As more countries seek to de-risk their supply chains and promote national manufacturing, opportunities will arise for UK firms offering alternatives to Chinese products, especially with a “Made in Britain” or compliance-first edge.

 

What UK Exporters Should Be Doing Now

At Export Unlocked, we believe 2025 is the year to rethink your export strategy in light of China’s dominance:

1. Understand Your Competitive Advantage

Don’t try to beat China on price—focus on quality, compliance, service, and niche value. Our Level 4 International Trade course dives deep into how to position your business globally.

2. Monitor Tariff Shifts

Tariff changes create new export windows. Stay informed on the latest policy developments in the EU, the US, and emerging markets. We’ll be covering these in upcoming newsletters.

3. Build Strong Documentation & Compliance

With scrutiny rising, importers and regulators will favour exporters who are bulletproof on:

  • Letters of credit
  • Customs compliance
  • Supply chain visibility

Need help? Check out our Customs & Documentation Training or Letters of Credit Workshops.

Upskill for Strategic Exporting

This isn’t just about shipping goods, it’s about knowing where, when, and how to compete internationally. If you’re managing trade or looking to expand, investing in training now will pay dividends later.

 

Ready to Compete Globally?

Whether you’re a growing SME or an experienced exporter, the landscape has shifted. Our practical, accredited trade courses will help you:

  • Navigate global trade dynamics
  • Avoid costly compliance mistakes
  • Build a scalable, export-ready strategy

Stay ahead of the curve. Export smarter. Export Unlocked.

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All articles are shared on our LinkedIn Newsletter ‘Trade Insights Unlocked‘.

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