China’s export-led growth is looking more and more unsustainable while a real estate crash and reeling consumers fuel deflationary spiral

The flood of Chinese exports around the world helped the economy blow past President Donald Trump’s massive tariff hikes, while Beijing touts successes in AI, EVs, robotics and other emerging technologies.

But that strength masks ongoing weakness among consumers and the property sector.

China’s trade surplus jumped 20% to $1.19 trillion in 2025, marking the world’s largest ever, as shipments surged to the European Union, Africa, Latin America and Southeast Asia.

Exports...