China's Trade Surplus Exceeds $1 Trillion for the First Time
The Wall Street Journal reports that China's trade surplus in goods has surpassed $1 trillion this year, a first in recorded economic history. This marks a new sign of Beijing's dominance in all areas, from advanced electric vehicles to low-cost T-shirts.
Record-Breaking Export Numbers
According to data from China's General Administration of Customs, cited by the journal, Chinese exports reached $3.4 trillion in the first 11 months of the year, a 5.4% increase from the same period last year. Meanwhile, imports decreased by 0.6% to approximately $2.3 trillion, resulting in a surplus of $1.08 trillion.
Decades of Industrial Policies and Hard Work
The journal estimates that this "exceptional" figure is the result of decades of industrial policies and intense human labor, which transformed China from a poor agricultural economy in the late 1970s to the world's second-largest economy. China has evolved from being the "workshop of the world" for cheap products to a dominant player in global supply chains for technology, transportation, pharmaceuticals, and consumer goods.
Dominance in Multiple Fields
The Wall Street Journal notes that China began to establish its position in the 1980s and 1990s as a producer of simple products such as wigs, athletic shoes, and Christmas lights, earning it the nickname "factory floor of the world." However, the report emphasizes that this was "just the beginning," as Beijing gradually moved up the "value-added ladder" to more complex and profitable products.
Leading the Way in Key Industries
Today, top Chinese companies are dominant players in solar panels, electric vehicles, and semiconductors used in everyday household appliances, making China "indispensable" in global supply chains.
Withstanding US Tariffs
Despite high tariffs imposed by the US, the Wall Street Journal asserts that Chinese exports continue to rise. After President Donald Trump's return to the White House in January, he quickly raised tariffs on Chinese imports, exceeding 100% in some cases before being reduced later. However, they still average around 37% on Chinese products, according to the Urban-Brookings Tax Policy Center, as reported by the journal.
Shifting Trade to Other Markets
Nevertheless, the figures cited by the Wall Street Journal show that Beijing has successfully "redirected" a significant portion of its trade to other markets. Chinese exports to Africa have surged by 26%, to Southeast Asia by 14%, and to Latin America by 7.1% since the beginning of the year.
Decreased Exports to the US
In contrast, Chinese exports to the US have decreased by 29% in November on an annual basis. However, China's total exports to the rest of the world have increased by 5.9% in the same month, driven by a 15% rise in shipments to the European Union and an 8.2% increase to Southeast Asian countries, according to the journal.
