The offshore yuan steadied around 6.97 per dollar on Wednesday, as strong external demand continued to underpin China’s economic growth. Exports climbed 6.6% year-on-year to a record high of USD 357.8 billion in December 2025, while imports rose 5.7% to USD 243.64 billion, marking a near four-year peak. For 2025 as a whole, China’s trade surplus widened to a record $1.2 trillion, with exports remaining the primary driver of growth and helping to offset weak domestic conditions. Looking ahead to 2026, global demand and China’s export competitiveness are expected to continue supporting the economy, provided the trade truce with the US holds. However, downside risks remain after US President Trump announced new tariffs on countries trading with Iran. Meanwhile, investor sentiment toward Chinese assets has turned increasingly bullish, with confidence in the yuan strengthening after it moved decisively past the 7-per-dollar level and some forecasts projecting appreciation toward 6.25.