Global Trade Shockwave: China's Premier Warns of 'Severe Blow' from Tariffs as Trade Surplus Soars Past $1 Trillion

At an international forum held in Beijing on Tuesday, Premier Li Qiang warned that the increasing use of trade barriers—especially tariff-based measures—is undermining the global economy. Addressing participants during China’s annual economic planning discussions, he argued that these policies ultimately harm all economies and have strengthened the global call to preserve open trade. Representatives from major institutions such as the International Monetary Fund, the World Bank, and the World Trade Organization were among those present.

Even as Li criticized protectionist policies, newly released data showed that China continues to perform strongly in global commerce. By November, the country’s 2025 trade surplus had already exceeded one trillion U.S. dollars. Although shipments to the United States dropped 29% year-on-year in November—marking the eighth consecutive monthly decline due to American tariffs—this setback was countered by substantial growth in exports to other regions. Overall outbound shipments rose 5.9% compared with the previous year, with exports to non-U.S. markets climbing a robust 12.1%.

On the domestic front, China’s economy expanded at an annual rate of 4.8% in the latest quarter, the slowest pace in a year. Even so, economists still expect the country to meet its approximate 5% growth goal for 2025, supported in part by the strength of exports. Li emphasized the importance of maintaining openness and cooperating internationally, noting that investment in technology is rising faster than overall investment. His remarks feed into this week’s Central Economic Work Conference, which follows an October session outlining priorities for the 2026–2030 period. These plans focus on solidifying China’s role as a leading manufacturing hub while shifting more emphasis toward innovation-driven and consumer-driven growth. Meanwhile, tensions between Washington and Beijing eased slightly after a late-October meeting between President Trump and President Xi Jinping in South Korea, during which both sides agreed to extend their truce on retaliatory measures for another year.