China's November export growth soared to 17.2% year-on-year, far surpassing forecasts of 7.5%, driven by a surge in manufacturing shipments ahead of a U.S.-China trade agreement. The rebound signals renewed global demand and easing geopolitical tensions.
- China’s exports rose 17.2% YoY in November, well above the 7.5% forecast
- The surge followed a U.S.-China trade truce that eased tariffs on key goods
- The yuan strengthened to 7.18 per USD amid improved market confidence
- FXI and ASHR ETFs rose 3.5% and 3.2% respectively on the news
- S&P 500 gained 1.4% and DXY dropped 0.6% as risk appetite improved
- Industrial and Technology sectors led export growth, with strong demand from the U.S. and Europe
China’s exports posted a sharp 17.2% year-on-year increase in November, according to official data released just minutes ago, markedly outpacing the 7.5% consensus estimate and marking the strongest performance since early 2023. The unexpected surge followed a bilateral trade truce announced last week between Beijing and Washington, which eased tariffs on key industrial and consumer goods. Manufacturers across the Pearl River Delta rapidly accelerated export volumes to lock in favorable terms before new policies take effect. The data reflects stronger demand from U.S. and European markets, with shipments of electronics, machinery, and consumer durables leading the rebound. The export surge coincided with a 3.4% month-on-month rise in factory output, suggesting improved business confidence and inventory replenishment across the supply chain. The robust figures also lifted the yuan, which strengthened 0.7% against the dollar to 7.18 per USD, as traders priced in sustained global trade flows. Markets reacted swiftly: the CSI 300 index climbed 2.1%, while China-related ETFs such as FXI and ASHR gained 3.5% and 3.2% respectively. Global risk assets also benefitted, with the S&P 500 rising 1.4% and the DXY index dipping 0.6% as trade war fears receded. Commodities linked to Chinese demand, including copper and iron ore, saw early gains, with copper futures up 1.8% on the LME. The export rebound underscores a shift in sentiment toward global economic resilience, particularly in manufacturing-heavy sectors like Technology and Industrial. Analysts now project a broader recovery in China’s trade balance, with imports expected to grow 8.9% in December, driven by higher commodity purchases.