China nears a second straight trade surplus in the $1 trillion range, with a record likely this year [Lee Seok-woo’s China 24]

[Financial News] Amid a global boom in investment in artificial intelligence (AI), China’s exports surged more than 30% last month, bringing the country close to a trade surplus in the $1 trillion range (1,337.2 trillion won) for the second consecutive year.
China’s customs authority, the General Administration of Customs of the People’s Republic of China, announced on the 14th that exports in September totaled $447.18 billion (about 597.8 trillion won), up 36.3% from the same period last year. The figure was well above the market estimate of 25.5% compiled by Reuters and the 25.0% export growth recorded in August. It was the highest rate in seven months, following February’s 39.6%.
Imports totaled $313.65 billion (about 419.3 trillion won), up 31.0% from the same period a year earlier, also exceeding August’s import growth of 28.2% and the market forecast of 24.5% compiled by Reuters.
As a result, China’s trade surplus in September exceeded $133.53 billion (about 178.5 trillion won).
The trade surplus totaled $938.11 billion (about 1,255 trillion won) from January to September, and is expected to top $1 trillion as early as the release of October data.
China’s trade surplus crossed the $1 trillion threshold for the first time last year, reaching $1.18898 trillion (about 1,591.2 trillion won). Since it did not surpass $1 trillion until November last year, China is likely to set a new all-time high this year.

There are expectations that trade pressure from trading partners such as the United States and the European Union could intensify as a result. A slowdown in the AI investment boom could deal a blow to China’s exports.
By country, China’s exports to the United States in September rose 39.6% from the same period a year earlier to $47.8809 billion (about 64 trillion won), as Chinese President Xi Jinping made a state visit to the United States and held a summit with his U.S. counterpart last month.
Imports, by contrast, rose 20.7% year on year to $13.8672 billion (about 18.5 trillion won), while China’s trade surplus with the United States in September was around $34 billion (about 45.5 trillion won).
With the U.S.-China trade truce continuing this year, China’s exports to and imports from the United States rose 9.8% and 5.2%, respectively, from the same period a year earlier in January-September. Bilateral trade during that period increased 8.6% year on year.
After recent trade tensions, the European Union and China agreed on a cap on exports of Chinese-made hybrid cars to the EU. Against that backdrop, China’s trade surplus with the EU last month hit a record $34.8 billion (about 46.5 trillion won), up about 21% from the same period a year earlier. China’s exports to the EU rose 25.3% last month, while imports edged up just 0.7%.
China’s integrated circuit exports in September rose 136% from the same period a year earlier to $44.9512 billion (about 60.1 trillion won), while imports climbed 74.7% to $71.7162 billion (about 95.9 trillion won).
By contrast, China ran trade deficits with South Korea, Taiwan and Japan last month.
China’s exports to South Korea in September rose 68.2% year on year to $20.6021 billion (about 27.5 trillion won), while imports from South Korea reached $34.6367 billion (about 46.3 trillion won), up 94.3% from the same period a year earlier. From January to September, China’s exports to and imports from South Korea rose 39.1% and 75.4%, respectively, year on year, while trade between the two countries grew 59.3%.
By product, China’s integrated circuit exports in September rose 136% from the same period a year earlier to $44.9512 billion (about 60.1 trillion won), while imports climbed 74.7% to $71.7162 billion (about 95.9 trillion won).
China’s rare-earth exports in September totaled 4,269.8 tonnes, up 6.7% from the same period a year earlier.
[email protected] Lee Seok-woo, international affairs correspondent Reporter