China's trade surplus roared above $1 trillion in November for the first time ever, despite the ongoing global trade war that has resulted in a steep drop in exports to the U.S.

In the first 11 months this year, China's overall exports grew 5.4% compared to the same period in 2024 while imports fell 0.6%, taking its trade surplus to $1.076 trillion this year as of November, up 21.6% year on year.

The move come even as China's U.S.-bound goods fell for an eighth straight month despite a recent trade deal between the two economies, even as overall exports surpassed market expectations in November as manufacturers loaded up shipments to other markets.

"China continues to rely less on selling stuff to the US," wrote Peter Boockvar, chief investment officer at One Point BFG Wealth Partners. "China has a massive pool of domestic savings and China will again try to encourage consumers to unleash more of it to lessen their dependency on manufacturing and exports."

Outbound shipments surged 5.9% last month in U.S. dollar terms from a year earlier, China's customs data showed Monday, topping economists' forecast for a 3.8% growth in a Reuters poll. That growth marked a rebound from an unexpected 1.1% drop in October the first contraction since March 2024.

Source: CNBC