China’s annual trade surplus soared past $1 trillion for the first time, driven by a sharp rebound in exports that outweighed a deepening collapse in shipments to the United States, according to customs data released on Monday.
Exports rose 5.9 percent year-on-year in November, reversing October’s dip and beating forecasts. The rebound came even as exports to the U.S. tumbled 28.6% to $33.8 billion — a reminder that China continues to feel the effects of years of tariff battles and tightening tech controls.
The record surplus reflects how China has rerouted exports to other major markets, analysts said, with rising price competitiveness amid domestic deflation supporting overseas sales.
“Weakness in exports to the United States was more than offset by shipments to other markets,” wrote Zichun Huang of Capital Economics, adding that the surplus is likely to widen further next year.
The booming external sector remains a crucial buffer for Beijing as it grapples with a protracted property crisis, sluggish consumer spending and uneven post-pandemic growth. Imports, meanwhile, rose just 1.9 percent, underscoring the weakness in domestic demand.
China-US agreement
The milestone comes just weeks after Presidents Xi Jinping and Donald Trump agreed to pause their spiralling trade conflict during an October meeting in South Korea. The temporary détente — set to expire late next year — includes scaling back some tariffs and export controls, though economists warn the truce may not hold.
China’s swelling trade imbalance is also provoking fresh frustration abroad. French President Emmanuel Macron warned during a state visit that the EU may impose tariffs if Beijing does not narrow its growing surplus with Europe.
Chinese leaders, who target five percent growth this year, are expected to discuss economic priorities at a key policy meeting this week.
