China reached a trade surplus of US$1.04 trillion in the first 10 months of the year, driven by overseas shipments of artificial intelligence infrastructure and electronics.

Customs data released on Nov 10 showed exports jumped 35.2 per cent in October compared with the same month in 2025, beating analyst forecasts of 33.5 per cent.

That outbound trade helped Beijing surpass the US$1 trillion mark a month earlier than it did in 2025. Total imports expanded 41.6 per cent during the month, outpacing the 32 per cent median estimate from economists and accelerating from September’s 31 per cent gain. Trade with the United States yielded a monthly surplus of US$32.71 billion, slightly narrower than September’s US$34.01 billion balance.

Behind the headline trade surplus sits a domestic consumer base that refuses to spend. Industry association numbers show car sales within China fell for a twelfth straight month in October, leaving domestic retail floors quiet while assembly plants redirected stock straight to dockyards.

Property losses continue to hit household wealth, forcing families across tier-one and tier-two cities to postpone big-ticket purchases. Instead of buying cars and durables at home, Chinese production lines increasingly depend on foreign buyers to clear factory inventory.

For consumer brands and automotive retailers, the split between output and domestic absorption is widening. While parts makers and assembly lines run hot, mainland dealers are stuck discounting showroom stock to clear forecourts.

The push to sell transport hardware abroad faces immediate pushback from overseas regulators. Brussels and Beijing recently reached terms to restrict Chinese hybrid vehicle shipments to the European Union over coming years, but the quotas are not yet active.

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