China Exports Exceeds New High

China’s exports just hit a new high. In October, exports surged by 12.7% compared to the same time last year, totalling $309 billion—far above expectations.

Imports, meanwhile, dipped slightly, leaving China with a trade surplus of $96 billion, one of its biggest monthly surpluses on record.

This export boom has been a key boost for China’s economy, even as its domestic market remains sluggish. The news also lifted Chinese stocks, with indices in Shanghai and Hong Kong performing among the best in Asia.

This export spike isn’t just boosting China’s economy; it’s also creating tension globally. A flood of affordable Chinese goods like steel and electric vehicles has led countries, especially the US, to raise tariffs in response.

Economists believe that part of the October surge could be due to “front-loading,” where companies speed up shipments before a potential trade war.

Exports to the US rose by 8.1%, the highest in three months, with even stronger increases in markets like ASEAN, the European Union, and Russia, where exports jumped almost 27%.

A big unknown for China’s trade outlook is the US election. If Donald Trump, who has promised steep tariffs of up to 60% on Chinese goods, returns to office, it could shake up trade between the two economic giants.

Last year alone, China exported $500 billion worth of goods to the US, about 15% of all its exports.

If these tariffs go into effect, China will need to find new buyers for its products. However, economists like Zichun Huang from Capital Economics believe emerging markets could pick up some of the slack, potentially limiting the impact to around a 3% drop in export volumes.

China’s strong export numbers may help it meet its 5% economic growth target for the year, even as Beijing rolls out measures to boost domestic spending.

Recently, China has announced support for the stock and housing markets and financial help for local governments. But with domestic demand still weak, Chinese companies are facing oversupply, forcing price cuts and impacting profits.

October’s export growth may also reflect a “weak base” from the same period last year, when shipments were down by nearly 7%.

While exports typically slow in October before a final end-of-year surge, this month’s numbers have exceeded expectations, offering a rare boost in an uncertain global market.