China’s Trade Balance Grows Unexpectedly in November

China's trade balance surprisingly increased in November despite disappointing export and import figures indicating sluggish demand both locally and overseas.

According to government data released on Tuesday, the trade balance rose to $97.44 billion in November, exceeding expectations of $94 billion and up from $95.27 billion the previous month.

Exports experienced a 6.7% year-on-year growth, which, while still relatively fast, fell short of analysts’ forecasts of 8.5% and indicated a significant slowdown from 12.7% in October.

The data suggests a potential cooling in overseas demand for Chinese goods, particularly as global companies seek to reduce their dependence on China in anticipation of future U.S. trade tariffs under President Donald Trump.

Conversely, Chinese imports revealed a discouraging view of local demand, contracting 3.9% in November, contrary to expectations of a 0.3% increase. November’s decline deepened from the 2.3% drop recorded in October.

This import data indicates that local demand has shown little improvement recently, notwithstanding various stimulus measures rolled out by Beijing to foster growth.

On Monday, China’s Politburo sent strong signals that additional stimulus support is forthcoming, with a commitment to targeted fiscal measures aimed at enhancing consumption and local demand.

The upcoming Central Economic Work Conference, set to begin on Wednesday, is anticipated to provide further insights regarding stimulus measures.