China's Trade Surplus Tops $1 Trillion

China’s annual trade surplus in goods has topped $1 trillion for the first time, with plunging exports to the United States amid a tariff war more than compensated for by shipments to other markets, new data shows. 

Figures released by China’s General Administration of Customs on Monday showed the trade surplus for the first 11 months of the year hit $1.08 trillion in November, as exports climbed 5.9 percent year-on-year that month, reversing a 1.1 percent decline the month prior. 

The leap came despite a continued slump in exports to the US, which fell 28.6 percent to $33.8 billion last month, the data showed. 

But exports to the European Union grew by an annual 14.8 percent last month, while shipments to Australia rose 35.8 percent. Meanwhile, the fast-growing Southeast Asian economies took in 8.2 percent more goods over the same period. That boosted China’s trade surplus to $111.68bn in November, the highest since June, from $90.07 billion recorded the previous month, and above a forecast of $100.2 billion. 

Beijing and Washington have been locked in a bitter trade war involving hefty tariffs during the second administration of US President Donald Trump, forcing Chinese exporters to pivot to other markets – although the leaders of the world’s two largest economies agreed to pause the hostilities during a meeting in South Korea on October 30. 

The average US tariff on Chinese goods stands at 47.5 percent, well above the 40 percent threshold that economists say erodes Chinese exporters' profit margins. 

Yesterday, Inter Milan played poorly and Liverpool got lucky. Dominik Szobozlai's 88th-minute penalty gave the latter a crucial 1-0 win against the Italian side in the Champions League. 

The victory strengthened the Reds' position in Europe as they seek qualification to the knockout rounds, with them climbing into the top eight in the league phase.