China is winning the trade war and its exports have never been higher

China was already outperforming every other major world economy last year as the coronavirus pandemic upended the globe. It looks like the country's relatively sure footing also gave it the edge in its trade war with the United States.

The world's second biggest economy closed out 2020 with an overall trade surplus of $78 billion for December, according to official customs data released Thursday. China's overall surplus for the year hit a record $535 billion, up 27% from 2019. Exports, meanwhile, rose to an all-time high. "Amid all the noises on de-coupling and de-globalization, somewhat unexpectedly, the pandemic has deepened the ties between China and the rest of the world," wrote Larry Hu, chief China economist for Macquarie Capital, in a research report.