China’s trade surplus surpasses $1 trillion for a 2nd straight year as exports surge 35%

HONG KONG — China’s trade surplus exceeded $1 trillion for a second straight year, according to official data released Tuesday, as pressure mounts for greater balance in trade with Beijing.

Exports in October surged 35.2% from a year earlier, the customs agency said. Exports have grown rapidly this year, supported by high-tech goods like semiconductors and autos.

From January to October, China logged a $1.04 trillion trade surplus, even as the trade surplus narrowed last month to $105.3 billion from $133.5 billion in September as imports picked up pace.

That puts China on track to surpass last year’s record surplus of $1.2 trillion.

“We expect Chinese exports to stay strong for the rest of this year, led by electronics and autos,” said Dave Chia, an economist at Moody’s Analytics.

China’s imports soared in October partly because of a recovery in shipments of crude oil from the Persian Gulf.

Overcapacity in many industries, excess domestic savings and weakened domestic demand are still leading China to ship its goods abroad as some countries move to protect their own industries, said Alicia García-Herrero, chief economist for Asia Pacific at French bank Natixis.

The situation is not sustainable, she said.

Businesses are feeling the…

Original source: https://www.nbcnews.com/business