Chinese exports accelerate amid trade risks, imports surprise By Reuters

By Ellen Zhang, Joe Cash and Ethan Wang

BEIJING (Reuters) – China’s exports rallied sharply in December, as exports recovered, closing the year on a positive note as the world’s second-largest economy he is preparing for the growing risks of trade and the incoming US administration.

US President-elect Donald Trump, who is set to return to the White House next week, has proposed higher tariffs on Chinese goods, raising fears of a renewed trade war between the two superpowers.

Adding to the challenges, unresolved disputes with the European Union over tariffs of up to 45.3% on Chinese electric vehicles threaten to hamper China’s ambitions to expand its exports.

“The initial business recovery became more visible in December due to the effects of the Chinese New Year and the inauguration of Donald Trump,” said Xu Tianchen, senior economist at the Economist Institute. The festival runs from January 28 to February 4 this year.

“The growth of imports can be supported by the accumulation of goods such as iron ore, as part of (China’s) policy of ‘buying low’,” he added.

Goods from December rose 10.7% year-on-year, customs data showed on Monday, beating the 7.3% growth forecast in a Reuters poll of economists, and improving from an increase of 6.7 % of November.

Imports surprised to the upside with 1.0% growth, the strongest performance since July 2024. Economists had expected a 1.5% decline.

China’s trade flow grew to $104.8 billion last month, up from $97.4 billion in November.

A spokesman for China’s customs told reporters that there is still “huge” room for imports of $18 trillion to grow this year.

The strength of exports has been a key factor in China’s economy, which has been weighed down by a prolonged slump in the goods market and weak consumer confidence.

There have been signs, however, of stability following China’s stimulus in recent months.

Factory activity rose modestly for the third consecutive month, while services and construction recovered in December, the official survey showed.

South Korea, an important indicator of China’s exports, reported an 8.6% increase in exports to China in December, suggesting resilience in demand for technology products.

China’s steel imports in 2024 rose for a second straight year to a new high, as low prices encouraged buying and demand remained steady despite the country’s lingering problems long continues to test the demand for iron.

The world’s largest agricultural exporter also bought large quantities of soybeans last year, after buyers worried about the US-China trade dispute rushed to stock up on US soybeans ahead of the presidential inauguration. the coming of America, Donald Trump.

But imports fell last year, the data showed, marking their slowest annual decline in the past two decades outside of the pandemic. COVID-19, while economic growth is strong and fuel consumption is high has reduced purchases.

China’s top leaders have pledged to ease monetary policy and adopt a more efficient fiscal policy by 2025, with the aim of eliminating external pressures and revitalizing domestic demand.

The government is targeting economic growth of around 5% for the year, a target that has looked elusive at times by 2024.