China's Trade Surplus Tops $1 Trillion For Second Year

China's trade surplus crossed $1 trillion for the second consecutive year, supported by strong exports of semiconductors, automobiles and other manufactured goods despite sluggish domestic demand and rising international trade tensions.

As per a report by Associated press, official customs data showed that exports surged 35.2% year-on-year in October, while imports increased 41.6%.

Between January and October, China's trade surplus reached $1.04 trillion, putting the country on course to exceed last year's record $1.2 trillion.

However, the monthly surplus narrowed to $105.3 billion from $133.5 billion in September as import growth accelerated.

China faces growing trade barriers from the US and European Union as governments seek to protect domestic industries.

Chia warned that restrictions imposed by European authorities could create additional challenges for Chinese exporters.

A potential slowdown in artificial intelligence (AI) investment also poses risks, particularly for semiconductor and electronics shipments.

Meanwhile, trade is expected to feature prominently in planned discussions between US President Donald Trump and Chinese leader Xi Jinping at the Asia-Pacific Economic Cooperation summit in Shenzhen.

A two-month extension of the US-China trade truce until January has offered temporary relief.

However, businesses remain concerned about future restrictions and uncertainty surrounding access to overseas markets.