Investing.com -- China witnessed an acceleration in exports and a slow recovery in imports last month. This uptick was partially fueled by factories quickly shipping inventory overseas in anticipation of potential trade complications under the incoming presidency of Donald Trump. Exports have played a crucial role in China’s economic growth, providing a positive aspect for an economy still grappling with a lengthy property crisis and low consumer confidence.
Customs data released on Monday indicated that outbound shipments in December climbed 10.7% year on year, surpassing analysts’ predictions and November’s figures. Imports also performed better than expected, recording 1% growth, marking the strongest performance since July of the previous year. Economists had projected a decline in imports.
A spokesperson for Chinese customs informed that there remains a substantial potential for China’s imports to grow in the coming year. Analysts have observed that a depreciating Yuan assisted Chinese manufacturers in finding overseas buyers last year. In 2024, China’s exports experienced an annual growth of 5.9%, while imports saw a marginal increase of 1.1% over the same period.
Looking forward, Donald Trump, the US President-Elect, has suggested imposing substantial tariffs on Chinese goods, sparking concerns of a potential trade war between the two nations. Furthermore, Beijing is dealing with lingering disputes with the European Union regarding tariffs on Chinese electric vehicles. This issue could potentially impact China’s ambitions to enhance its auto exports and address deflationary overcapacity concerns.
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