China’s annual trade surplus crossed $1 trillion for the first time, according to customs data released on Monday. Officials said a strong rebound in exports powered the milestone despite continued pressure from the United States. The sharp gain highlighted China’s ability to redirect shipments to other markets during global uncertainty.
Exports rose 5.9 percent year-on-year in November. The increase reversed October’s decline and exceeded market forecasts. However, exports to the United States dropped 28.6 percent to $33.8 billion. The fall underscored the ongoing strain from tariff battles and tightening technology controls imposed in recent years. Analysts said China’s export strength reflected improved price competitiveness supported by domestic deflation.
Analysts highlight broader market diversification
Zichun Huang of Capital Economics said weakness in US-bound shipments was offset by exports to other markets. He added that the trade surplus may widen further next year. Economists noted that China continues to pivot toward emerging markets and regions with less restrictive trade rules. They said new supply chains are helping exporters stabilise growth despite geopolitical constraints.
China’s external sector remains crucial as authorities confront domestic challenges. The country faces a prolonged property crisis, weak consumer spending and uneven post-pandemic recovery. Imports rose only 1.9 percent, revealing continuing weakness in internal demand. Officials said the slow import growth highlights structural issues the government must address.
Trade truce offers limited relief
The milestone arrived shortly after Presidents Xi Jinping and Donald Trump paused their trade conflict. They agreed to scale back some tariffs and reduce certain export controls during an October meeting in South Korea. The temporary truce will expire late next year. Economists warned that rising tensions could disrupt the agreement before its scheduled end.
China’s expanding trade imbalance has also increased international pressure. French President Emmanuel Macron warned during a state visit that the EU may consider tariffs. He urged Beijing to narrow its surplus with Europe to prevent future disputes.
Chinese leaders, who target five percent growth this year, will discuss economic priorities at a key policy meeting this week. Officials said the meeting will outline strategies to stabilise growth and improve domestic demand.
