What's going on?

Keep it between us, but fresh data out on Monday showed China�s exports had their biggest monthly increase in November since early 2018.

What does this mean?

Chinese companies shipped $268 billion worth of goods abroad in November � a 21% jump compared to the same time last year, and the most on record for any single month ever (tweet this). This is becoming a bit of a habit: Chinese exports have repeatedly surprised expectations since the country emerged from coronavirus lockdown in the second quarter of this year. And while exports were previously driven mostly by personal protective equipment and medical gear, they�re now getting a boost from electronics as workers-from-home upgrade their new working-from-home lifestyles.

Why should I care?

For markets: Enjoy it while it lasts…

China�s industrial sector � which makes all the goods that are shipped abroad � makes up around 40% of its economy, compared to the US and the European Union�s 20%. Those countries� economies, meanwhile, are more heavily dependent on the services sector, which includes the restaurants and retailers that have been hit particularly hard by the pandemic. That might partly explain why China�s economy has already recovered all the ground it lost in lockdown, while its biggest rivals continue to struggle. Of course, those fortunes could take a turn when coronavirus vaccines arrive and shoppers start throwing money at real-life experiences all over again�

The bigger picture: Take, take, take.
The rise in Chinese exports was driven in part by a surge in the number of products shipped to the US, but that relationship isn�t necessarily working both ways. Even though China pledged in January to steeply boost US imports this year, it hasn�t actually followed through with that promise � and that might not do much to patch up the two countries� already-fraught relationship.