China nears record $1 trn trade surplus

The country has been relying more on exports to compensate for the weak domestic demand

China's trade surplus is on track to hit a fresh record this year, increasingly leaving it on a collision course with some of the world's biggest economies by aggravating an imbalance in global commerce that risks provoking President-elect Donald Trump.

The difference between Chinese exports and imports is set to reach almost $1 trillion if it continues to widen at the same pace as it has in the year to date, according to Bloomberg calculations. The goods trade surplus soared to $785 billion in the first 10 months, according to data released last week, the highest on record for that period and an increase of almost 16 per cent from 2023.

"With Chinese export prices still falling, export volume growth was enormous," Brad Setser, senior fellow at the Council on Foreign Relations, said on X. "The overall story is of an economy that is again growing off exports."