China's Trade Surplus Nears $938 Billion, Pressuring Europe

China's trade surplus reached about $938 billion in the first nine months of the year, as exports rose 16.4% and imports 22.3%, according to trade data that puts external demand at the center of growth.

The economy grew 4.5% year-on-year in the third quarter, slightly above the 4.4% forecast, according to the National Bureau of Statistics. But the size of the surplus means a growing share of Chinese output is looking for markets abroad.

Europe, one of the largest markets still open to Chinese goods, is set to bear more of that surplus, particularly in electric cars, solar panels, batteries and machinery, after the United States raised tariffs.

Brussels is pushing back with trade measures, including a deal to shield hybrid carmakers from Chinese imports, while Europe remains dependent on China for supply chains and critical materials, including rare earths. Analysts say a model built on manufacturing rather than consumption increases pressure on European manufacturers, with the International Monetary Fund expecting China to grow 4.5% this year and calling for more support for household spending and an end to the property slump.

What do these terms mean?

Trade Surplus: The difference between the value of exports and imports when exports exceed imports.

Tariffs: Taxes imposed by a government on imported or exported goods.

Rare Earths: A group of metals used in electronics, magnets, batteries and advanced technologies.