Business

China's exports surge as manufacturers shift focus beyond United States

Beijing posts stronger-than-expected November trade performance as firms deepen ties with Southeast Asia and Europe

Updated 10 months ago · Published on 08 Dec 2025 3:45PM

China's exports surge as manufacturers shift focus beyond United States
Exports top expectations as non-US shipments lead amid high U.S. tariffs - December 8, 2025

CHINA’S exports exceeded expectations in November, buoyed by a significant increase in shipments to markets outside the United States as Chinese manufacturers accelerate efforts to diversify amid President Donald Trump’s steep tariffs.

Reuters reported today that Beijing has intensified its pursuit of alternative export destinations since Trump’s victory in last year’s presidential election, strengthening commercial ties with Southeast Asia and the European Union while leveraging Chinese companies’ overseas operations to secure low-tariff access through new production hubs.

Official customs figures released on Monday show that exports rose 5.9 per cent year-on-year, reversing a 1.1 per cent decline in October and beating the 3.8 per cent growth forecast in a Reuters poll. Imports grew 1.9 per cent, compared with a 1.0 per cent increase the previous month, though below economists’ expectations of 3.0 per cent.

“The tariff cuts agreed under the U.S.–China trade truce didn’t help to lift shipments to the U.S. last month, but overall export growth rebounded nonetheless,” said Zichun Huang, China economist at Capital Economics. “We expect China’s exports will remain resilient, with the country continuing to gain global market share next year.”

She added that “the role of trade rerouting in offsetting the drag from U.S. tariffs still appears to be increasing.”

Despite recent truce measures, Chinese exports to the United States fell 29 per cent year-on-year in November. The average U.S. tariff on Chinese goods stands at 47.5 per cent, surpassing the 40 per cent threshold widely seen as eroding Chinese exporters’ margins.

By contrast, exports to the European Union jumped 14.8 per cent, shipments to Australia soared 35.8 per cent, and exports to Southeast Asian economies rose 8.2 per cent over the same period.

This broad-based growth pushed China’s trade surplus to 111.68 billion dollars in November, up from 90.07 billion dollars in October and above the projected 100.2 billion dollars. For the first time, the cumulative trade surplus for the year’s first 11 months passed the one-trillion-dollar mark.

“Electronic machinery and semiconductors seem to be key,” said Dan Wang, China director at Eurasia Group. “There is a shortage in lower-grade chips and other electronics, which meant prices jumped, and Chinese companies going global have been importing all kinds of machinery and other inputs from China.”

The yuan strengthened on Monday amid the upbeat trade data as investors awaited signals from major year-end policy meetings. The Communist Party’s Politburo pledged to take steps to expand domestic demand, a shift analysts view as vital for reducing the $19-trillion economy’s reliance on exports.

Senior officials are also due to meet in the coming days for the annual Central Economic Work Conference, where they will set economic targets and outline policy priorities for the coming year. - December 8, 2025

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