China scrambles to export items forward of Trump tariffs

Chinese companies scrambled to export goods last month amid the looming threat of tariffs from a Donald Trump presidency.

China’s exports grew at the fastest pace in over two years in October as factories rushed to sell stock to major markets in anticipation of further tariffs from the US and the European Union.

Donald Trump’s sweeping victory in the US presidential election has brought into focus his campaign pledge to impose tariffs on Chinese imports in excess of 60pc.

Outbound shipments grew 12.7pc last month compared to last year, customs data showed, blowing past a forecast 5.2pc and September’s rise of 2.4pc.

China’s exports to the US increased at an annual pace of 8.1pc, while outbound shipments to Europe jumped 12.7pc over the same period.

Xu Tianchen, senior economist at the Economist Intelligence Unit, said: “We can anticipate a lot of front-loading going into the fourth quarter, before the pressure kicks in come 2025.

“I think it is mainly down to Trump. The threat is becoming more real.”

The president-elect’’s tariff threat is rattling Chinese factory owners and officials, with some $500bn (£387bn) worth of annual shipments on the line.

It comes amid intensifying trade tensions with the EU, which last year took $466bn (£360bn) worth of Chinese goods, after officials in Brussels imposed tariffs of up to 37pc on electric vehicles from the world’s second-largest economy.

Zichun Huang, China economist at Capital Economics, said: “We expect shipments to stay strong in the coming months.

“Any potential drag from Trump tariffs may not materialise until the second half of next year.

“Trump’s return could create a short-term boost to Chinese exports as US importers increase their purchases to get ahead of the tariffs.”

Meanwhile, China’s imports fell 2.3pc, compared with expectations for a drop of 1.5pc, turning negative for the first time in four months.

Read the latest updates below.