China's exports surge by nearly 6% in November, despite a 29% drop in shipments to the US. This marks an eighth consecutive month of double-digit declines in US exports. Overall exports reached $330.3 billion, surpassing economists' estimates and a 1.1% contraction in October. China's trade surplus for the first 11 months hit a record high of nearly $1.08 trillion, surpassing the $992 billion surplus in all of 2024. While US exports have fallen for most of the year, shipments to other destinations like Southeast Asia, Latin America, Africa, and the EU have surged. China's imports increased 1.9% in November, at over $218.6 billion, despite a persistent downturn in the property sector. A year-long trade truce between China and the US was reached in October, with the US lowering tariffs and China halting export controls on rare earths. However, China's factory activity contracted for an eighth straight month in November, and it's too early to determine if external demand has truly rebounded. Economists predict China will meet its 5% economic growth target, focusing on advanced manufacturing for the next five years. Despite ongoing trade tensions and protectionism, Morgan Stanley predicts China's global export market share will reach 16.5% by 2030, driven by its edge in advanced manufacturing and high-growth sectors.
