China surpasses $1 trillion trade surplus this year amid Trump's tariffs

November trade surplus also rose 5.9% year-on-year

Exports to Europe up 15%, exports to Australia up 36%, Southeast Asia up 9%

China's November exports exceeded expectations, rising 5.9% year-on-year as it increased shipments to regions outside the United States. Also, the trade surplus through November topped $1 trillion (about 1,467 trillion won) for the first time on record.

According to Reuters on the 8th (local time), China's November trade surplus rose 5.9% year-on-year to $111.68 billion (about 164 trillion won), marking the highest level since June. It also increased substantially from the $90.07 billion recorded in October and exceeded the forecast of $100.2 billion.

As a result, China's trade surplus surpassed $1 trillion (1,467 trillion won) for the first time in history.

China's strong export growth despite Trump's tariff war is due to diversifying its export markets to regions outside the United States, such as Europe and Southeast Asia. Exports to the European Union (EU) rose 14.8% in November, exports to Australia surged 35.8%, and exports to Southeast Asian countries also increased 9.2%.

However, despite the tariff truce, exports to the United States fell 28.6% year-on-year in November. Year-to-date, China's exports to the U.S. have declined 18.9% year-on-year, and imports have fallen 13.2%.

Over the first 11 months of this year, China's total exports increased 5.4% compared with the same period in 2024, while imports decreased 0.6%. Consequently, the trade surplus through November reached $1.076 trillion, up 21.6% year-on-year.

The average tariff rate that the United States applies to Chinese goods is 47.5%, exceeding the 40% threshold economists estimate would erode Chinese exporters' profit margins.

Dan Wang, Eurasia Group's China director, said, "Electronic machinery and semiconductors are key." He said, "A shortage of low-quality semiconductors and other electronic products has driven prices up, and Chinese companies operating in global markets are importing all kinds of machinery and raw materials into China."

China's rare earths exports also rose 26.5% in November compared with the previous month. This was due to an agreement between President Trump and President Xi Jinping.

Buyers in China, who had been reluctant to import U.S. soybeans earlier this year, are increasing orders for U.S. soybeans in addition to purchases of South American soybeans, and soybean imports this year are expected to reach a record high.

On the day, the Chinese yuan rose on stronger-than-expected export data. According to LSEG data, the yuan stood at 7.0669 per dollar that day. Offshore yuan has risen nearly 5% since April.

Guest reporter Kim Jeong-ah kja@hankyung.com