China trade surplus tops USD1trn for first time on non-US growth

BEIJING: China’s trade surplus topped USD1 trillion for the first time as manufacturers seeking to avoid President Donald Trump’s tariffs shipped more to non-US markets in November, with exports to Europe, Australia and Southeast Asia surging.

Shipments to the United States dropped by close to one-third from the same month a year before.

“The tariff cuts agreed under the US-China trade truce didn’t help to lift shipments to the US last month, but overall export growth rebounded nonetheless,” said Zichun Huang, China economist at Capital Economics. “We expect China’s exports will remain resilient, with the country continuing to gain global market share next year.”

“The role of trade rerouting in offsetting the drag from US tariffs still appears to be increasing,” she added.

Chinese exports overall grew 5.9 percent year-on-year in November, customs data on Monday showed, a reversal from October’s 1.1 percent contraction, and beating a 3.8 percent forecast in a Reuters poll.