China's exports in November saw a slight increase of 0.5%, marking the first rise since April. This comes as a surprise to many, as it breaks a six-month decline. However, imports fell by 0.6%, indicating a weak domestic demand. The data, released by the General Administration of Customs, resulted in a trade surplus of $68.39 billion. These figures exceeded economists' expectations.
The rise in exports is attributed to seasonality and exporters slashing prices to gain market share. However, economists and analysts are skeptical about the sustainability of this growth. They predict that without price cuts, exports are unlikely to defy the slowdown in China's major trading partners.
Trade with major partners such as Japan, Southeast Asian countries, the European Union, and the U.S. has declined. In an attempt to stimulate the economy, the central bank has implemented measures including easing borrowing rules and issuing bonds for infrastructure projects.
In related news, President Xi Jinping met with EU leaders to discuss trade deficits, climate change, and the Russia-Ukraine war. EU chief Ursula Von der Leyen expressed tolerance for a chronic trade imbalance with China, while Beijing criticized the EU's restrictions on sensitive technology exports.