China’s trade surplus soared to USD 95.27 billion in October 2024, a significant jump from USD 56.13 billion in the same month last year. This was well above the expected surplus of USD 75.1 billion, marking the largest trade surplus since June 2024. The impressive growth was mainly driven by a sharp increase in exports, which outperformed forecasts and pushed the surplus higher.

Surge in Exports Drives Trade Surplus

Exports surged 12.7% year-on-year in October, far exceeding the anticipated 5% growth and marking the fastest pace of growth since July 2022. The sharp increase in exports comes as manufacturers front-loaded orders, anticipating possible future tariffs from the US and the EU. This proactive approach has helped boost China’s export figures, reflecting strong demand for its goods despite global trade uncertainties.

Decline in Imports Due to Weak Domestic Demand

While exports soared, imports saw a decline of 2.3% in October, reversing a modest 0.3% increase in September. The drop in imports highlights weak domestic demand in China, which has been affected by slower economic recovery and lower consumer spending. This fall in imports fell short of the expected 1.5% decline, further underscoring the challenges China faces with internal economic growth.

Trade Surplus with the US Remains Strong

The trade surplus with the United States slightly widened to USD 33.50 billion in October, compared to USD 33.33 billion in September. For the first ten months of 2024, China’s total trade surplus stood at USD 785.3 billion. Exports grew by 5.1% to USD 2.93 trillion, while imports rose at a slower pace of 1.7% to USD 2.14 trillion. The surplus with the US during this period reached USD 291.38 billion, continuing to be a major contributor to China’s overall trade surplus.