China records $1.6 trillion trade surplus as exports pivot from US to EU

Chinese exporters have defied expectations by hitting an unprecedented trade surplus milestone while facing the most severe US trade restrictions.

China’s trade surplus has surged passed the $1 trillion barrier. Picture: AP

China has recorded a $US1 trillion trade surplus in goods for the first time despite President Donald Trump imposing tough tariffs on imports from the world’s second-largest economy.

Figures published on Monday revealed that, in the first 11 months of the year, China recorded a trade surplus of nearly $US1.1 trillion ($1.66 trillion) in physical goods exports. Across the whole of 2024, the surplus was just below $1 trillion.

The data illustrated that demand for Chinese goods across the globe remained strong despite an escalation in trade tensions between Washington and Beijing. Mr Trump earlier this year subjected imports of Chinese goods to tariffs of more than 100 per cent, which prompted retaliatory levies from China, before the two sides negotiated down their respective trade taxes.

The imposition of tariffs prompted Chinese companies to seek alternative buyers for their products beyond the US. Exports rose by 5.9 per cent on an annual basis in November, Chinese data showed, after falling unexpectedly in the previous month. Imports increased by 1.9 per cent year on year in November, generating a $US112bn surplus in November alone.

Shipments to non-US markets leapt by 12.1 per cent, the trade data showed, after rising by 3.1 per cent in the previous month. By contrast, exports to the US dropped by 28.6 per cent on an annual basis last month, larger than October’s annual fall of 25.2 per cent.

Sales to the European Union rose by 14.8 per cent annually, up sharply from an increase of 0.9 per cent in October.

Overseas sales of Chinese mobile phones, computers and home appliances slid by 8.9 per cent in November, compared with a drop of 13.4 per cent in October. Exports of hi-tech products accelerated by 7.7 per cent, rising from growth of 1.8 per cent. Sales of vehicles and related products jumped by nearly a third.

The Times