China’s overall exports grew 5.9% year-over-year in November|Francis Domiano
China’s trade surplus passed a record $1 trillion for the first 11 months of the year, according to its General Administration of Customs. The historic high comes despite President Donald Trump’s tariffs on the country.
Despite a continued trade truce and reduction in tariffs between the US and China, its exports to America dropped 29% year-over-year in November.
Meanwhile, China’s overall exports grew 5.9%. Shipments to the European Union rose 14.8%, while exports to Australia surged by 35.8% and those to Southeast Asia increased by 8.2%.
There is also a rise in “transhipping” in Southeast Asia, where China’s goods are assembled and shipped to the US.
Analysts say the massive Chinese surplus calls into question the effectiveness of trade measures taken by developed nations. The EU bought $350 billion worth of Chinese goods in 2024, which is more than it sold to the country.
French President Emmanuel Macron has threatened to impose tariffs if Beijing does not take steps to reduce its surplus with the EU.
Notably, domestic demand in China remains soft due to a prolonged property downturn and a continued contraction in factory activity, primarily driven by reduced US buyers.
The ruling Communist Party has pledged to expand domestic demand, which is essential to weaning China’s $19 trillion economy from its reliance on exports.