China's Exports Defy Expectations Amid Tariff Truce

China's exports exceeded forecasts in November due to a tariff truce with the U.S. Outbound shipments grew by 5.9% year-on-year, reversing previous contractions. Imports also increased, though less than expected, reflecting continued uncertainty for manufacturers amid a trade surplus rise to $111.68 billion.

China's exports saw a surprising surge in November, bolstered by a tariff truce with the United States despite weak factory activity and diminishing returns from strategic shipments. Data revealed a 5.9% year-on-year growth in outbound shipments, marking a reversal from the prior month's 1.1% decline and surpassing the projected 3.8% increase.

Imports experienced a modest 1.9% rise, falling short of economists' 3.0% growth forecast. This development followed the announcement of scaled-back tariffs after a meeting between U.S. President Donald Trump and China's President Xi Jinping on October 30 in South Korea. The diminished access to the U.S. market has trimmed China's export growth by about 2 percentage points, impacting GDP by around 0.3%.

The trade surplus ballooned to $111.68 billion, beating expectations. However, November's factory activity survey indicated ongoing contraction, highlighting challenges for manufacturers searching for new markets amid fading U.S. demand.