China's Export Growth Slows Sharply in November

China's exports grew at a slower pace in November, reflecting a worrying sign for the world's second-largest economy as incoming US President Donald Trump's administration brings fresh trade risks. According to customs data, outbound shipments grew just 6.7% last month, missing an 8.5% increase in a Reuters poll of economists and a 12.7% rise in October.

More worryingly, imports shrank 3.9%, their worst performance in nine months, dashing expectations for a 0.3% increase. This has sparked calls for more policy support to prop up domestic demand.

Trump's Tariff Pledges Pose New Risks

US President-elect Trump has pledged to impose an additional 10% tariff on Chinese goods in a bid to force Beijing to do more to stop the trafficking of chemicals used to make fentanyl. Trump has previously said he would introduce tariffs in excess of 60% on Chinese goods, posing a bigger threat to China's economy as its exports are one of its main growth drivers.

Meanwhile, unresolved tensions with the European Union over tariffs on China-made electric vehicles threaten to open a second front in Beijing's trade war with the West.

Policy Support and Global Demand Concerns

Government advisors are recommending that Beijing keeps its growth target unchanged at around 5% next year and implements more forceful stimulus to mitigate the expected US tariffs by leaning on the country's vast domestic consumer market. "Global demand is not super strong, data from other major exporters like South Korea and Vietnam point to different levels of slowdown too," said Xu Tianchen, senior economist at the Economist Intelligence Unit.

China's trade surplus grew to US$97.44 billion last month, up from US$95.72 billion in October. The poor import figure was attributed to falling commodity prices, with China's coal imports rising 26% year-on-year in November, a record high.