Marketplace All-in-One U.S. tariffs fail to dent China's trade surplus
Dec 8, 2025
Nick Marsh, a BBC correspondent specializing in international economics, discusses how China has managed to surpass a $1 trillion trade surplus despite a significant drop in exports to the U.S. He reveals that Chinese manufacturers are redirecting their products to new markets in Southeast Asia and Europe. Hugh Schofield, a BBC journalist based in Paris, shares insights on the contentious dynamics within France's divided parliament, focusing on ongoing budget disagreements and the tensions surrounding pension reform and wealth tax proposals.
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China Replaces U.S. Buyers Quickly
- China ran a goods trade surplus of over $1 trillion between Jan–Nov by finding new buyers outside the U.S..
- Exports to the U.S. fell nearly 29% in November, but overall exports rose 6% year-on-year that month.
Scale Lets China Flood New Markets
- China's manufacturing scale and supply chains let it undercut competitors and find alternative markets like Southeast Asia and Europe.
- That shift is good for foreign buyers but pressures domestic manufacturers in those regions with cheap Chinese goods.
Budget Gridlock Shapes French Politics
- France's fractured parliament complicates consensus on budget cuts and reforms, forcing unlikely deals across the spectrum.
- Amendments like suspending pension reform and proposing a wealth tax have deepened splits within the coalition.