Key Points
- China’s overall exports grew by 5.9% in November, beating expectations after a decline in October.
- Despite this growth, exports to the United States plummeted by nearly 29%.
- China is successfully redirecting its exports to new markets in Southeast Asia, Africa, and Latin America.
- The country’s trade surplus for the year has reached a new record of over $1 trillion.
China’s exports made a surprise comeback in November, growing after a dip the month before. However, the positive headline masks a deepening rift with a key trading partner, as shipments to the United States collapsed for the eighth straight month.
Official customs data released Monday showed that China’s overall exports grew by 5.9% year over year, reaching $330.3 billion and beating economists’ forecasts. This is a significant turnaround from the 1.1% drop seen in October. Imports also saw a slight increase of 1.9%.
This export strength has pushed China’s year-to-date trade surplus to a record-breaking level, soaring past the $1 trillion mark to nearly $1.08 trillion.
The most striking detail in the report is the dramatic decline in trade with the U.S., with exports falling by nearly 29%. To make up for this shortfall, China has successfully shifted its focus to other parts of the world. Shipments have surged to Southeast Asia, Latin America, Africa, and the European Union, demonstrating a major pivot in its global trade strategy.
The data comes just after a trade truce was agreed upon by U.S. President Donald Trump and Chinese leader Xi Jinping in late October, which included lower U.S. tariffs. However, economists believe these changes haven’t fully kicked in yet.
Despite the strong export numbers, China’s domestic economy shows signs of weakness, with factory activity shrinking. Still, analysts are divided on the future. Some worry the U.S.-China truce is fragile, while others at firms like Morgan Stanley predict China will increase its share of the global export market by 2030, driven by its dominance in high-tech sectors such as electric vehicles and robotics.
