China’s Exports Soar, Putting Its Trade Surplus on Track for a Record
New York Times · LC · trust 38/100
China’s exports grew last month at the fastest pace in almost any month since the end of the global financial crisis.
Listen · 6:13 min Share full article A weak currency has helped make Chinese goods more competitive overseas while raising the cost of imported products at home. Credit... Gilles Sabrié for The New York Times By Keith Bradsher
Keith Bradsher reported from Nanjing and Guangzhou, China
China’s General Administration of Customs said the country recorded a $133.5 billion trade surplus last month, the second-highest month ever. The latest figures put China on course to considerably exceed last year’s record $1.19 trillion trade surplus .
Another month of skyrocketing exports is expected to further stoke tensions with many trading partners, including in Europe, where anger over the flood of Chinese vehicles and other items is prompting some leaders to propose a so-called “kill switch” to shut out goods from China.
Economists disagree on how much of China’s enormous trade surplus is driven by stronger exports and how much stems from weaker imports. A weak currency has helped make Chinese goods more competitive overseas, while raising the cost of imported products at home.
The value of the renminbi, China’s currency, has fallen more than 14 percent in inflation-adjusted terms against a broad set of currencies since March 2022, according to the Bank of International Settlements, an institution owned by the world’s central banks, including China’s. March 2022 was when China began a two-month Covid-19 lockdown in Shanghai, which dealt a lasting blow to consumer confidence.
Broad tax breaks for exporters have also fueled the export boom. The incentives cost China’s finance ministry about $318 billion last year.
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