China export growth beats expectations

US tariffs spur surge in non-US shipments

- JOE CASH

China's exports topped forecasts in November, driven by a surge in shipments to non-US markets as manufacturers deepen trade ties with the rest of the world in light of President Donald Trump's prohibitively high tariffs.

The world’s second-largest economy has ramped up efforts to diversify its export markets since Trump won last year's presidential election, pursuing closer trade ties with Southeast Asia and the European Union, and leveraging Chinese firms’ global footprint to establish new production hubs for low-tariff access.

China's exports grew 5.9% year-on-year, customs data showed yesterday, reversing from a 1.1% contraction a month prior, and beating a 3.8% forecast in a Reuters poll.

Imports were up 1.9%, compared to a 1.0% uptick in October. Economists had expected a 3.0% increase.

“The tariff cuts agreed under the US-China trade truce didn'thelp to lift shipments to the US last month, but overall export growth rebounded nonetheless,’ said Zichun Huang, China economist at Capital Economics.

He added, “We expect China's exports will remain resilient, with the country continuing to gain global market share next year”

“The role of trade rerouting in offsetting the drag from US tariffs still appears to be increasing,’ she added.

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