China, the world’s second-largest economy, registered its trade surplus, reaching a landmark $1 trillion in November for the first time ever.
China reached the mark despite the ongoing global trade war, which resulted in a steep drop in exports to the U.S.
In the first 11 months this year, China’s overall exports grew 5.4% compared to the same period in 2024, while imports fell 0.6%, taking its trade surplus to $1.076 trillion this year as of November, up 21.6% year on year, reported CNBC.
“China continues to rely less on selling stuff to the US,” Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, was quoted as saying by CNBC.
“China has a massive pool of domestic savings, and China will again try to encourage consumers to unleash more of it to lessen their dependency on manufacturing and exports,” Boockvar said.
Meanwhile, analysts believe the country’s solid exports would contribute to China’s broader economic expansion.
“China’s trade surplus tops US$1 trillion mark as exports rebounded despite tariffs,” Lynn Song, chief economist for Greater China at Dutch investment bank ING, noting growth of 22.1 per cent over the same period last year, was quoted as saying by The South China Morning Post.
He said the ballooning trade surplus would help contribute to stronger growth in 2025.
Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, was quoted as saying by the newspaper: “It seems the economy is on track to deliver around 5 per cent growth this year, in line with the government’s target. The upcoming Politburo meeting and the central economic work conference will shed light on the policies in 2026.”
The relationship between the US and China touched a new low earlier this year, followed by multiple rounds of tariffs and sanctions.
However, the two strong economies later reached an agreement, reducing tariffs and delaying export controls.
In November, Donald Trump held a telephone conversation with his Chinese counterpart, Xi Jinping, when the American President announced he would visit Beijing next year.
