China’s Premier Li Qiang has warned that rising global tariffs are hurting the world economy, even as China’s trade surplus has topped $1 trillion, highlighting the strain protectionist measures are placing on global growth.
China’s premier Li Qiang warned on Tuesday (December 9, 2025) that rising global tariffs have delivered a “severe blow” to the world economy, even as China’s own trade surplus has climbed past $1 trillion.
Qiang made the remarks at a forum of major international organisations in Beijing, held alongside China’s annual economic planning meetings.
“Since the start of this year, we’ve seen the stick of tariffs being wielded around the world with growing restrictive measures on the economy and trade, which have dealt a severe blow to the global economy,” Li said, without directly naming US President Donald Trump or his tariff hikes.
“As events have unfolded, the damaging consequences of tariffs hurting both others and oneself have become increasingly evident, and calls to uphold free trade have grown ever stronger,” he told representatives from the International Monetary Fund, the World Bank and the World Trade Organization.
Chinese exports slump to US but surge elsewhere
Trump’s steep tariff increases on imports from China and other countries have reduced Chinese exports to the US, though Beijing has offset some of the impact by boosting shipments to other global markets. Chinese customs data released on Monday showed exports to the US fell 29 percent year-on-year in November, marking the eighth consecutive month of declines.
Despite this drop, China’s trade surplus for 2025, in dollar terms, has already exceeded $1 trillion, while overall exports rose 5.9 percent from a year earlier.
Trade tensions between Beijing and Washington have eased slightly after…
Beijing faces growing pressure from global partners
On Tuesday, Li Qiang urged trading partners to push back against rising protectionism, a day after China posted a record $1 trillion trade surplus supported by a surge in exports to non-US markets.
Beijing now faces widening friction with major trading partners beyond the US, who are calling on China to reform its $19 trillion economy and reduce its reliance on exports for growth.
China’s premier pressed the heads of the IMF, World Bank, WTO and others to strengthen global governance in response to the growing number of economies imposing levies on imports, including on Chinese goods.
“Since the beginning of the year, the threat of tariffs has loomed over the global economy, with various trade restrictions proliferating and severely impacting global economic activity,” Li said at the “1+10 Dialogue” in Beijing. “The mutually destructive consequences of tariffs are becoming increasingly apparent, and calls from all sides to uphold free trade are growing ever stronger.”
Analysts: China’s export-heavy model is fuelling tariff tensions
Analysts cited in a report emphasised that that China’s massive trade surplus and reluctance to shift away from an export-driven economy are directly contributing to the rise in global tariffs. Yet they see little incentive for Beijing to alter course despite mounting international pressure.
Li said China’s domestic demand “will be unleashed at a faster pace” over the next five years, according to a readout of the meeting. But frustration abroad is rising.
French President Emmanuel Macron said on Sunday that he had threatened Beijing with tariffs during his state visit, which coincided with the European Commission announcing plans to strengthen Europe’s resilience to threats such as rare earth shortages and dumped imports.
Economists argue that while Trump’s tariff hikes were highly disruptive to global trade, Beijing’s reluctance to reform leaves Western governments with limited options.
“China is not taking any action, and I think has no intention to do so,” said Alicia Garcia-Herrero, senior fellow at the Bruegel think tank. “I don’t see China caring about all of these visiting officials whatsoever.”
“Its export-driven model is going to contribute around 40 percent of global growth in 2025. I don’t think it has ever been higher, and China is supposedly growing, so there is no reason for such a big contribution to external demand,” she added.
Chinese exports pivot to new markets after US tariff hikes
Monday’s trade data showed China’s push to diversify exports since Trump’s November 2024 election victory is gaining momentum, with shipments rising sharply to Europe, Australia and Southeast Asia.
“US import tariffs have diverted Chinese exports to other destinations, exacerbating competitive pressures in many parts of the world,” said Fred Neumann, chief economist for the Asia-Pacific at HSBC. “This is a reminder that tariffs can distort trade flows, but in themselves don’t address fundamental macro-imbalances.”
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