China's Trade Surplus Hits $1.04 Trillion in Ten Months
October exports jumped 35.2% year over year, driven by a surge in semiconductor and auto shipments to the U.S. and Europe.
By Amina Howard ·
Global trade imbalances continue to strain diplomatic relations as official data released Tuesday showed China's trade surplus exceeded $1 trillion for the second consecutive year.
The customs agency reported that exports in October surged 35.2% compared to the same period last year. This rapid growth was fueled largely by high-tech goods, including semiconductors and automobiles. Imports also climbed, rising 41.6% year over year, a jump partly attributed to a recovery in crude oil shipments from the Persian Gulf.
From January through October, China recorded a trade surplus of $1.04 trillion. The monthly deficit narrowed to $105.3 billion in October, down from $133.5 billion in September, as import volumes increased. Current trends suggest China is on pace to surpass the previous record of $1.2 trillion set in 2025.
Specific product categories showed dramatic increases. Semiconductor exports soared 137.1% in value, while auto exports rose 37.6%. Dave Chia, an economist at Moody's Analytics, stated that electronics and autos are expected to keep exports strong for the remainder of the year. He noted that trade curbs from the European Union represent a risk, though Nguyen Hoang Nam of Capital Economics argued these measures affect only a small portion of total Chinese exports.
Domestic conditions are shaping export strategies. Alicia García-Herrero, chief economist for Asia Pacific at Natixis, pointed to overcapacity and weak domestic demand as drivers pushing goods abroad. In Linhai, Zhejiang province, Cinders Zhou, who sells eyewear, described a market forced to compete on price due to product homogenization. She noted that the industry faces a significant lack of quality differentiation.
Trade flows with major partners show distinct patterns. Exports to the U.S. grew 32.9% in October, rebounding from a low base after last year's tariff hikes. The ten-month trade surplus with the U.S. stood at approximately $266.5 billion. Meanwhile, exports to the EU rose 24.3% in October, contributing to a ten-month deficit for the EU of more than $310 billion.
The next meeting between U.S. President Donald Trump and Chinese leader Xi Jinping is scheduled for next week in Shenzhen. The discussion is expected to focus on trade issues following a two-month extension of the trade truce. Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, said that U.S. and European policies have added significant difficulties for Chinese businesses expanding in those markets.
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