China's Exports Surpass Expectations, Trade Surplus Hits $1 Trillion

China's exports in November 2025 surged 5.9% year-over-year, beating market expectations, despite a continued decline in exports to the U.S. due to high tariffs. Exports to other markets like the EU and ASEAN rose significantly. China's trade surplus reached $1.076 trillion, up 21.6% year-on-year. The country's exports of rare earths accelerated, while soybean imports grew 13% year-over-year. Chinese policymakers are expected to discuss economic growth targets and policy priorities at the upcoming Central Economic Work Conference.

China's exports grew 5.9% in November, exceeding economists' expectations, despite a significant drop in shipments to the US. The country's trade surplus has surpassed $1 trillion in just 11 months, a record high. While exports to the US have declined for eight consecutive months, shipments to other regions such as Southeast Asia, Africa, and the European Union have surged. China's imports increased 1.9% in November, and economists expect the country to meet its economic growth target of around 5% for the year. A trade truce between China and the US was reached in late October, with the US lowering tariffs on China and China halting export controls on rare earths. Economists are cautiously optimistic about China's economic prospects, but note that the global trade environment remains uncertain.

China's trade surplus has surpassed $1 trillion for the first time, reaching $1.08 trillion through November, driven by a surge in exports to countries other than the United States. Despite tariffs imposed by the US, China's exports have continued to grow, with the country selling more than twice as much to the European Union as it buys. The weak Chinese currency, the renminbi, has contributed to the trade surplus, making Chinese goods cheaper for foreign buyers. However, economists and business leaders are calling for China to let the renminbi strengthen, which would make imports cheaper for Chinese households but potentially hurt exporters. China's top leaders are under pressure to revive consumer spending, one of their top goals, but this may require accepting a narrower trade surplus.