China's trade surplus is approaching the trillion dollar mark

Despite the growing pressure from trading partners, China's exports have recently grown significantly.

In September, Chinese exports increased by 36.3 percent compared to the same month last year, according to the customs authority in Beijing. Imports rose by 31 percent. This is more than was previously expected. Analysts had expected export growth of around 25 percent and an increase in imports of up to 24.5 percent.

The trade surplus reached $133.53 billion in September. From January to September it already totaled $938.11 billion. This means that China could exceed the $1 trillion mark earlier than last year and once again surpass the previous year's record surplus of $1.2 billion.

Semiconductors and cars drive exports

An important growth driver is the demand for artificial intelligence (AI) products. These include semiconductors, storage technology and components for power supply and transmission. The value of Chinese semiconductor exports rose 108.1 percent in the first nine months. Car exports increased by more than 50 percent in terms of value and volume.

The growing surplus is likely to exacerbate trade conflicts with the USA and the EU. In September, China's trade surplus with the USA was a good $34 billion and that with the EU was $34.8 billion.

EU limits Chinese hybrid car imports

In the dispute over competition with Chinese car manufacturers, the EU and China recently agreed to limit hybrid car imports. An initial limit of 350,000 vehicles per year is planned, which is expected to increase by six percent per year over the following four years.

The regulation should take effect from December. “The fact that both sides are negotiating is a hopeful signal,” said the head of the German Chamber of Commerce in East China, Michael Kern. For the more than 5,000 German companies in China, this means that the risk of escalation has initially reduced.

There was a temporary easing of tensions in the customs dispute with the USA in September. Both sides agreed to cut tariffs on goods worth $30 billion each. However, it remains unclear whether the rapprochement will continue.