China's record trade surplus of nearly US$1.2 trillion last year was concentrated in just four provinces, underscoring the regional specializations that underpin the country's global trade strength, declares the World Economic Forum.

Zhejiang, Guangdong, Jiangsu, and Shandong accounted for 96 percent of the surplus, each serving as gateways along China's major rivers. Guangdong, the largest trading province, recorded more than $1 trillion in trade value in 2025, driven by exports of smartphones, computers, and semiconductor goods.

Jiangsu, part of the Yangtze River Delta, has a similar focus on electronics and advanced manufacturing. Zhejiang has become a hub for cross-border e-commerce and small-parcel exports, while Shandong combines industrial and agricultural exports, including tires and vegetables.

Other provinces are also emerging as trade players. Liaoning, anchored by Dalian port, exports ships and marine equipment, while Anhui has become a center for electric vehicles, batteries, and solar products, making it China's second-largest exporter of passenger cars.

The regional trade picture reflects China's broader shift up the industrial value chain, from labor-intensive goods to technology-driven production. OECD data shows China overtook the US in R&D spending in 2024, highlighting its emphasis on innovation and industrial upgrading.

The World Economic Forum said China's rise presents both opportunities and challenges for the global economy. As provinces strengthen their positions in strategic industries, other economies are reassessing trade strategies, while China deepens ties with emerging markets to reshape global trade flows.