China’s Trade Surplus Tops $1 Trillion for First Time

China’s trade surplus has exceeded $US1 trillion ($1.5 trillion) for the first time, driven by manufacturers rerouting exports away from the United States to other global markets amid ongoing tariff pressures.

Export Trends
Shipments to the United States fell by nearly one-third in November compared to the same month last year.

Exports to Europe, Australia, and Southeast Asia surged, offsetting the decline.

Overall exports grew 5.9% year-on-year in November, reversing October’s 1.1% contraction and beating a 3.8% forecast in a Reuters poll.

Imports and Surplus
Imports rose 1.9%, slightly above October’s 1% increase, though below economists’ expectations of 3% growth.

November’s trade surplus reached $US111.68 billion, the highest since June, up from $US90.07 billion in October, and above forecasts of $US100.2 billion.

With one month of data still pending, the annual surplus has already crossed the $US1 trillion milestone.

Expert Analysis
Zichun Huang, China economist at Capital Economics, noted:

“The tariff cuts agreed under the US-China trade truce didn’t help to lift shipments to the US last month, but overall export growth rebounded nonetheless. We expect China’s exports will remain resilient, with the country continuing to gain global market share next year.”

She added that trade rerouting continues to play a growing role in offsetting the impact of US tariffs.