Chinas Exports Soar, Putting Its Trade Surplus on Track for a Record

A record-setting surge in China’s exports dwarfed its imports in September, as the country’s vast manufacturing sector churned out cars, solar panels, electrical equipment and other goods for markets worldwide.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.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe....