China's $1 trillion trade surplus can't hide economic slowdown
China crossed the $1 trillion-mark in trade surplus in November, but things aren't as rosy as they sound.
Even with all that export cash, the country's factories and shops are slowing down—industrial output grew just 4.8% (the lowest since August 2024), and retail sales barely budged.
What's dragging things down?
Retail sales only ticked up 1.3% from last year, and the growth rate slowed compared to October.
Prices for goods keep dropping too—marking over three years of factory/producer price deflation.
Sectors under pressure & shrinking exports
Car sales took a real hit, falling 8.1%—their first drop in three years—which dragged down overall retail numbers.
Home prices in big cities also dropped, and exports now make up just 20% of China's GDP (way down from 35% back in 2006).
The big challenge: Not enough people buying at home
With global demand cooling off and fewer exports to lean on, China is struggling with weak domestic demand—a problem that is putting profits under pressure and making layoffs more likely.