Just a year ago, Chinese manufacturers, fearing a new trade war, rushed to push out exports following the election victory of US President Donald Trump, who had pledged to slap punishing tariffs on imports from China over America’s widening trade deficit. A year later, Trump has delivered on his promise. But China has pivoted – and exported more.
In a striking display of resilience, the world’s second-largest economy notched a record trade surplus of $1 trillion in just the first 11 months of the year – a milestone no other nation has achieved.The stunning outcome – underscoring that the American market is not entirely irreplaceable – has bolstered Chinese leader Xi Jinping’s confidence in taking a hardball approach with Trump throughout this year’s protracted trade war. While the two countries have dialed back tensions and returned to a fragile trade truce after Trump and Xi’s meeting in October, a final agreement remains nowhere in sight.
