Trade surplus widened to $133.5 billion amid EU friction

China’s General Administration of Customs released the trade figures Wednesday. Exports rose 36.3% from a year earlier in September, accelerating from August’s 25.0% increase, according to the customs data. The reading topped the 25.0% growth forecast by economists surveyed by the Wall Street Journal.

By region, exports to Southeast Asia — China’s largest trading partner bloc — rose 52.3% year-over-year. Shipments to the United States, China’s third-largest trading partner, climbed 40%, while exports to the European Union surged 25.3%, up from a 6.6% rise in August.

The strong export performance widened China’s trade surplus to $133.5 billion in September from $119.1 billion in August, exceeding the $111.4 billion forecast by economists. Imports also grew rapidly, rising 31% from a year earlier.

Nguyen Hoang Nam, an economist at Capital Economics, attributed the export strength to global demand for AI-related and green-tech products, saying that semiconductors and computing equipment contributed more than 13 percentage points to overall export growth. Auto shipments “surged 56.3%, driven by strong overseas appetite for electric vehicles,” he said.

The September figures come amid mounting trade friction with the European Union, which has pressed Beijing to address a widening trade imbalance and flagged concerns over competition from Chinese manufacturers. Earlier this month, the two sides reached an understanding on Chinese hybrid and plug-in hybrid vehicle exports to the bloc — an arrangement that could cut Chinese shipments by more than half.

Despite the strong trade performance, China continues to grapple with sluggish domestic demand. A prolonged property downturn and subdued consumer spending are weighing on the broader economic recovery. Separate data released Wednesday showed consumer prices rose 0.9% year-over-year in September, ticking up from August’s 0.8% increase but falling short of the 1.0% growth forecast by economists.

China is estimated to report third-quarter economic growth of 4.4%, according to forecasts by economists — an improvement from 4.3% in the second quarter but a figure that would remain below Beijing’s full-year target range of 4.5% to 5%.